Specialist private equity investor Hg has opened a new US office in New York.
Hg is one of the the most active European-based investors in software and services, having led over 100 investments in the sector in the last 25 years. On an aggregated basis, Hg’s portfolio represents the third largest and fastest growing technology company headquartered in Europe.
The firm has 170 people representing the largest technology investment team in Europe, with funds under management of USD13 billion and a portfolio representing a combined enterprise value of USD25 billion. Hg’s investment teams have a flexible investment approach, investing across three buyout funds, with deal sizes ranging from USD100 million to over USD5 billion.
Hg’s New York office marks the firm’s latest expansion as a leading investor in growing companies that provide critical software and services to businesses. The New York-based team will support Hg’s existing activities and capitalise on new investment opportunities presented by a local presence. Specifically, the team will support Hg’s three US-headquartered software companies with a combined EV of around USD2.5 billion and serving over 6,000 global customers, as well as numerous other portfolio companies with US operations. The team will also build on existing relationships with corporate leaders in US software and services, who have been serial acquirers of Hg portfolio companies.
The US team will initially comprise 10 investment professionals, led by two experienced investment partners. Ben Meyer joined Hg from Temasek where he was a senior member of the global team. Gero Wittemann joined from CVC Capital Partners where he was Managing Director. Andrew Sukawaty has been appointed as US Chairman; he brings extensive experience as an executive and has served as advisor to several private equity firms, including on two previous investments with Hg.
Meyer, Partner at Hg, says: “Hg has developed a major presence in software and technology services private equity, establishing a platform of ubiquity and scale, a strong brand name and reputation, deep domain expertise, supportive operating capabilities and growth-oriented focus. I’m excited to help Hg continue this growth in the US.”
Gero Wittemann, Partner at Hg, says: “Hg has led half of the largest software buyouts in Europe over the last decade. The size of the US technology market, estimated to be around USD3.2 trillion, materially increases the opportunity to invest more across Hg’s areas of focus, and represents both a logical and exciting new chapter in Hg’s growth.”
Andrew Sukawaty, US Chairman at Hg, says: “The Hg investment model includes partnering with the management teams of the businesses we invest in. We want to do things differently and that means working with businesses committed to change, with entrepreneurial leaders, driven by ambition, innovation and excellence. The partnership approach that Hg pursues is unique and one that we think will resonate well with US companies.”