Investment Profile: H.I.G. Capital Works Two Fronts — Venture and Buyouts

Editor’s note: Today’s venture or investment profile from Local tech Wire features a firm that does both. The series was compiled by Matthew Burns, Daniel Pearson and Worth Civils. In less than a decade, H.I.G. Capital has established itself as one of the leading private equity firms in the Southeast, with $750 million under management in two pools: one for venture investments and another for middle-market buyouts.

Investors in the Miami-based firm include the likes of Yale University, MIT, Deutsche Banc Alex. Brown, Goldman Sachs, Donaldson Lufkin & Jenrette and TIAA.

H.I.G. typically invests $3 million to $7 million initially in its venture portfolio companies, and up to as much as $20 million total in follow-on rounds. The firm concentrates on Internet, communications and software companies, including Netifice Communications, Fast-Talk Communications, Cirrex and iVivity, all of Atlanta.

In the buyout arena, H.I.G. has invested in more than 40 companies nationwide, from semiconductor programmer Source Electronics to Swiss Army knife distributor Precise International to commercial contractor Integrated Roofing and Waterproofing. The firm looks for companies with up to $250 million in revenue that possess a strong brand in growing industries that aren’t highly cyclical or capital intensive and works quickly to close deals.

Here’s the skinny:

Featured Firm: HIG Capital

Mailing address:

Miami Office (headquarters)
1001 Brickell Bay Drive
27th Floor
Miami, FL 33131

Atlanta Office
950 E. Paces Ferry Road
Suite 1550
Atlanta, GA 30326

Phone numbers:

Miami, (305)379-2322
Atlanta, (404)504-9333

Web site: www.higcapital.com
Management Team:

Sami Mnaymneh
Tony Tamer
Douglas Berman
John Black
John Bolduc
Charles Hanemann
David Kettler
Brian Schwartz

Focus of firm: Early-stage technology companies and management-led buyouts or recapitalizations of established and profitable companies.

Money under management: $750 million

Companies funded over the last five years:

Abacus Software
Agere
Axian
Captus Networks
Celllt
Cenetec
Cirrex
Corcentric
Cylex
EMedicine
Eviciti
Fast-Talk
iVivity
LetsTalk.com
Micro Networks
Mosaic Systems
Netifice
Optellios
Optxcon
OminCluster Technologies
onQ Technology
Pinnacle
Savvion
TheScientificWorld

In what size range: Typically $3 million to $7 million

Sweet Spot (types of deals, stage of the company): Venture capital investments focus on early-stage technology companies in communications, infrastructure, e-commerce, and Internet software and services. Management buyouts provide capital to small and medium sized companies with established products and services.

Most important attributes for companies seeking funding: Must be willing to work closely with HIG management team to build value and profitability.

What differentiates you: HIG has a team of seasoned investment professionals who have substantial operating, strategic and financial management experience.

Wednesday’s profile: Total Technology Ventures

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