HGGC is a company founded in 2007 located in Palo Alto, CA by Richard Lawson, Robert Gay and Steven Young. They involve themselves in a variety of financial transactions such as public and private equity, recapitalization, or leveraged buyout investments.
Industries represented by this investment firm include business and services, healthcare, industrial and chemical, and information technology. Although many of the opportunities HGGC has taken advantage of are found in North America, many of the investments are made with corporations around the world.
Some Monetary Statistics
A typical investment made by HGGC is between $25 million-$125 million oftentimes offered to companies with revenues ranging from $100 million-$1 billion. They also strive to find companies that have a value of at least $100 million-$75 million before interest, taxes and amortization. In addition, they often seek to place funds in companies that have an enterprise value of $100 million-$500 million. The EV is calculated as common stock plus preferred equity market value, debt market value, and minority interest minus cash and investments.
Some of the most notable investments by HGGC are three made with MyWebGrocer, Denodo Technologies and FPX. MyWebGrocer funds raised totals more than $48 million by 2014, with a total of $64 million including the $13 million also raised by 2009. In 2016, more than $200 million has already been raised for FPX, and Denodo received $1.84 billion by 2017.
HGGC also has made three additional notable investments (not including the second MyWebGrocer one): The acquisition of MotoFuze, which became an add-on for AutoAlert, The backing of Integrity Marketing Group, and The investment in Hybris along with other funders.
The types of Investments
HGGC often prefers to invest in a way that gives them the majority of company ownership. Otherwise, they at the very least usually negotiate for control rights of a company to which they provide funds.