H.I.G.’s Bayside closes Fund IV 10 pct over target

  • Bayside closes Fund IV on $1.1 bln
  • Beats original $1 bln target
  • Bayside team has turned over in recent years

H.I.G. Capital’s special-situations group, Bayside Capital, closed its fourth Loan Opportunity Fund on $1.1 billion in a fundraising process interspersed with a wave of team departures.

H.I.G. announced the fund close July 6. The total, which exceeded Fund IV’s original $1 billion target, included limited-partner commitments and separate accounts, H.I.G.’s statement said. It’s unclear how much of the total is single LP commitments and how much resides in separate accounts.

“The next several years will present a compelling opportunity to invest in U.S. special situation credit opportunities, driven by an inefficient secondary market for small-cap stressed/distressed loans and improving conditions for special situations investing,” John Bolduc, head of Bayside, said in the statement.

Fund IV focuses on non-control loan obligations of stressed and distressed companies in the U.S., H.I.G. said. The fund provides liquidity to, and acquires debt from, struggling companies, the firm said.

When Bayside officially began fundraising for Fund IV is unclear. Maine Public Employees’ Retirement System approved a commitment of $50 million to the fund in August 2014, pending negotiations. It’s not clear whether that commitment was finalized.

Maine reported H.I.G. would kick in a 3 percent, $30 million GP commitment to Fund IV. It’s unclear whether that has changed.

Bayside’s leadership team changed over time. The group is led by Bolduc. According to Bayside’s website, the managing-director group includes Sean Britain, Jackson Craig, Riccardo Dallolio, Roman Krislav, Simon Laker, Giuseppe Mirante, Duncan Priston, Adam Schimel, Andrew Scotland and Sensu Serpen.

Departures from that group in recent years included Tim Eichenlaub, Ahmed Hamdani, Tiffany Kosch, Lionel Laurant, Appu Mundassery, Sean Ozbolt, David Robbins, Lewis Schoenwetter and Paul Triggiani.

Action Item: Reach John Bolduc at jbolduc@higcapital.com

Laser Class boats depart in front of the Miami skyline during the Rolex Miami OCR 2009 sailing competition on January 27, 2009. Photo courtesy Reuters/Carlos Barria