H.I.G. Capital Announces Strategic Minority Investment by Dyal Capital
MIAMI – August 3, 2016 – H.I.G. Capital ("H.I.G."), a leading global private equity and alternative asset investment firm with more than $20 billion of equity capital under management, announced today that it has sold a minority stake to Dyal Capital Partners III ("Dyal"), a permanent capital vehicle managed by Neuberger Berman.
Under the terms of the transaction, Dyal has acquired a passive non-voting stake, representing less than 15% of the economic interests of the firm. Proceeds will be primarily used to increase the firm’s investments in its own funds and to seed and fund a number of growth initiatives, in order to further capitalize on the firm's unique position in the small and mid-cap market.
Sami Mnaymneh and Tony Tamer, the Founders and Co-CEOs of H.I.G. commented: "We are delighted to welcome Dyal to the H.I.G. family. This is an important milestone in the development of the firm. Having access to permanent capital will allow us to more quickly and effectively achieve the firm's strategic growth objectives."
Michael Rees, Head of Dyal Capital Partners, added: "We are excited to partner with what we believe is the leading player in the middle and lower mid-market. H.I.G. has a highly differentiated business model, combining a focus on inefficient market segments and real operational value-added expertise. Its performance track record is truly impressive."
Founded in 1993, and with over 500 employees worldwide, H.I.G. manages a series of funds across private equity, credit, and real estate strategies in the US, Europe, and Latin America.
The terms of the transaction are private and are not publicly disclosed. Evercore served as financial advisor to H.I.G. in this transaction.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative asset investment firm with over $20 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Dyal Capital Partners
Dyal Capital Partners III, a fund managed by Neuberger Berman Group, acquires minority equity interests in institutional alternative asset management businesses worldwide. The Dyal Capital Partners business was established in 2011, manages three independent permanent capital funds, and has 18 minority partnerships currently. For more information, please visit www.dyalcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.