H.I.G. Capital has successfully closed its H.I.G. Europe Realty Partners III fund, securing aggregate capital commitments of $1.3 billion, significantly exceeding its predecessors. The firm has swiftly deployed the new fund, already announcing ten investments in the European real estate market.
The fund targets mid-market real estate properties throughout Europe, leveraging H.I.G. Capital’s global presence with offices across Europe, North America, South America, and the Middle East. By focusing on a specific geography, the firm’s 500 investment professionals can closely monitor market trends. This fund adds to H.I.G.’s impressive $64 billion of capital under management.
H.I.G. Capital actively manages its real estate investments, aiming to revitalize capital-starved properties and boost revenue generation. Through rehabilitation and rebranding initiatives, the firm helps underperforming assets reach their potential. H.I.G. also assists assets in recovering from inadequate management by implementing strategic recruitment, financial advisement, and consulting services.
Riccardo Dallolio, Head of Europe Real Estate, expressed confidence in the firm’s approach to the middle market sector: “The Fund is well-positioned to capitalize on the current market opportunity set in the less efficient middle market segment across Europe. It will invest across the capital structure and asset classes with a particular focus on value-add and operational improvements to generate substantial asset appreciation.”
H.I.G. Capital’s Co-Founders Sami Mnaymneh and Tony Tamer highlighted the fund’s potential for European operations: “As we continue to expand our global real estate footprint, we are thrilled by the success of our European real estate platform as evidenced by the strong support from our investors. We believe the current environment, specifically in the U.K. and Germany, where market dislocations are driving meaningful repricing across asset classes, presents compelling investment opportunities for the Fund.”
The fund attracted diverse limited partners worldwide, including public and private sector pensions, foundations, endowments, financial institutions, and consultants. Assets in the fund will likely benefit from H.I.G. Capital’s operationally focused approach and over 30 years of industry experience. Since 1993, H.I.G. Capital has invested in more than 400 global companies, with its current active portfolio comprising over 100 organizations totaling above $53 billion in sales.
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