HIG Capital has relocated managing director Fraser Preston and principal Brian McMullen from Miami to San Francisco to focus on mid-market opportunities in the Western US.
Preston and McMullen are part of a 25-person investment team that focuses on US mid-market opportunities at HIG. The firm established the division in 2008, allocating $1.5 billion of capital for the strategy from its $3 billion Bayside Debt & LBO Fund II, a 2008 vintage. The mid-market team, which is separate from the lower mid-market group that manages the firm's $1 billion Fund V, focuses on businesses with enterprise values between $200 million and $1 billion
“We perceived that there was a good opportunity generally speaking on the West Coast,” Preston told Private Equity International. “There was deal flow that we were not adequately tapped into, as it’s hard to manage investments on the other side of the country.
HIG’s mid-market team manages a portfolio of 14 companies, including surgery facility operator Surgery Partners, automotive services business Dent Wizard and packaged ice distributor Arctic Glacier.
“We’re seeing a lot of technology, telecom and media companies,” Preston said, adding that the business services and manufacturing sectors continue to present a healthy level of opportunities. “There’s a whole world that we were not perceiving when we were based on the East Coast.”
In addition it its US-focused private equity funds, HIG also manages the $500 million HIG Growth Buyouts & Equity Fund II, a 2011 vintage that invests in both Western Europe and North America, and the €600 million Europe-focused HIG Europe Capital Partners, a 2007 vintage.
HIG has more than $12 billion of equity capital under management and invests in management-led buyouts and recapitalisations.