Hg

Hg is a prominent private equity firm headquartered in London, with a specialized focus on software and services businesses across Europe and North America. The firm strategically invests in companies within the financial services, healthcare, information technology, and software industries, seeking out businesses characterized by strong recurring revenue, high growth potential, and defensible market positions. Their investment philosophy centers on partnering with management teams to drive operational excellence and strategic expansion.

Employing a deeply sector-focused approach, Hg leverages extensive domain expertise to identify and support its portfolio companies. They typically engage in majority buyouts or significant minority investments, providing not just capital but also strategic guidance and operational support. As of early 2024, Hg manages an impressive portfolio with over $65 billion in funds under management, underscoring their substantial capacity for capital deployment across various deal sizes.

The firm operates through a tiered fund structure, including Hg Mercury for smaller software businesses, Hg Genesis for mid-market software companies, and Hg Saturn for large-cap software buyouts. This multi-fund strategy allows Hg to tailor its investment approach to different company sizes and stages within its core sectors. Their equity investments typically range from approximately $75 million for mid-market opportunities, reflecting their engagement with established, yet growing, companies, to over $1.5 billion for larger, transformational buyouts. For instance, their Hg Saturn 3 fund closed with $19 billion in commitments, demonstrating their capability to execute on some of the largest transactions in the software and services space.