HGGC invests $115m in Upland Software

• The investment is in the form of convertible preferred stock
• Rod Favaron, president of Upland, will be stepping down from his post, effective August 31, 2022
• HGGC has over $6.8 billion of cumulative capital commitments

Upland Software Inc, Austin-based provider of enterprise software, has secured a $115 million strategic equity investment from HGGC.

The investment is in the form of convertible preferred stock. The HGGC investment will add incremental capital resources to Upland’s balance sheet and provide a strong base of capital for future acquisitions.

“HGGC has a proven track record of building value in the software sector through deploying capital and partnering with management teams to enhance customer value and drive growth, both organically and through acquisitions,” said Jack McDonald, Upland’s chairman and CEO, in a statement. “The HGGC partnership, operational and strategic resources and long-term investment horizon will help us to fully capitalize on the once-in-a-decade acquisition opportunity we see emerging as recent turmoil in financial markets fundamentally reshapes funding and valuations for venture backed cloud software companies.”

In connection with the HGGC investment, Upland expects to appoint David Chung of HGGC as a new director to its board. Also, Rod Favaron, president of Upland, will be stepping down from his post, effective August 31, 2022.

In the 12 years since Upland was founded, it has built a cloud software business serving 1,800 plus enterprise customers, with over 1,000 team members around the world.

HGGC is a middle-market private equity firm with over $6.8 billion of cumulative capital commitments. Based in Palo Alto, California, HGGC was founded in 2007.