HIG Capital (HIG) has sold a minority stake to Dyal Capital Partners III (Dyal), a permanent capital vehicle managed by Neuberger Berman. Dyal has acquired a passive non-voting stake, representing less than 15 per cent 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 capitalise on the firm's unique position in the small and mid-cap market.
Sami Mnaymneh and Tony Tamer, the Founders and Co-CEOs of HIG, says: "We are delighted to welcome Dyal to the HIG 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, adds: "We are excited to partner with what we believe is the leading player in the middle and lower mid-market. HIG 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, HIG 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 HIG in this transaction.
