HGGC has distinguished themselves as a middle-market private equity firm that is getting things done. They are leading the way, there is no doubt about it. But how are they going about doing it? What makes them so special? Part of the reason for their success would have to be because of their “Advantaged Investing” model. They use this model to find scalable businesses to invest in, and then they do so through a “multiples” model where they partner with management teams, sponsors and executives. When these individuals along with HGGC, they create a cascade effect where a multitude of interests are aligned. Co-founder Steve Young is a former NFL quarterback, and he realizes that it often takes just as much teamwork to create a successful investment portfolio as it does to win football games.
This principle can be seen readily at work with many of the reason transactions HGGC has made in the past couple of years. First of all, they completed a transaction between them and enterprise Configure Price Quote Solutions leader FPX in late 2017. This merger was originally completed in April of 2016, but the contributed this later investment to help FPX complete a smooth product development transition. HGGC also wants to see this company continue to expand globally and assist them with all of their channel and strategic partnerships. This association will continue to assist FPX with their vision of becoming a market in the Configure Price Quote (CPQ) arena. The success of FPX will also contribute to the success of HGGC because it will continue to showcase their expertise when it comes to investing in the right companies. FPX was also proud of the fact they were able to open a European office in Munich and have an increased presence in London.
The success of FPX also illustrates the success of HGGC. This middle market firm has the ability to make leveraged buyout investments in companies just like this one that have around $100 million to $1 billion in annual revenues. When this company sees a potential market leader, they do not hesitate in investing in them. It is model that has worked flawlessly.