About This Fund
HGGC Fund III is the third flagship buyout fund raised by HGGC, a Palo Alto-based private equity firm founded in 2007 and known for its 'Advantaged Investing' approach. The fund held its final close on December 14, 2016—just 99 days after launch—raising $1.84 billion in commitments against a $1.5 billion target and surpassing the $1.75 billion hard cap. This record-pace fundraise reflected exceptional LP demand: HGGC secured $1.25 billion from existing investors and $500 million from new limited partners, drawing from a global base of public and private pension funds, sovereign wealth funds, insurance companies, family offices, and institutional investors across North America, Europe, Asia, and the Middle East.
HGGC Fund III pursues control buyout investments in middle-market companies with enterprise values typically ranging from $100 million to $1 billion across four primary sectors: technology and information services, business and financial services, and consumer industries. The firm's investment strategy seeks businesses using technology to disrupt or modernize established end markets—such as software-enabled services, financial technology, and consumer-facing platforms—where HGGC's operating expertise and partnership-driven culture can drive transformational value creation. Average acquisition multiples for Fund III were approximately 7.4x EBITDA, reflecting disciplined entry pricing in competitive middle-market processes.
With Fund III, HGGC contributed to a cumulative track record of over 730 completed transactions totaling more than $79 billion in enterprise value across its fund family. Representative investments from the firm's track record include Dealer.com, Serena Software, Thryv, and Evolent Health, demonstrating consistent value creation in technology-enabled business services. The rapid close of Fund III—less than 100 days from launch to final close—stands as a testament to HGGC's investor relationships and the repeatability of its investment model in the U.S. middle market technology and business services segments.