H.I.G. Capital's Strategic Investment Philosophy in Action

H.I.G. Capital is a global private equity firm that has been making strategic investments for over three decades. Since its founding in 1993, the firm has invested in a wide range of industries, from healthcare and technology to consumer and industrials.

The firm's investment philosophy is centered around finding undervalued companies with strong potential for growth. This approach has allowed H.I.G. to identify and invest in companies like A.M. Castle & Company, a leading distributor of specialty metals and plastics.

By taking a long-term view and working closely with management teams, H.I.G. is able to help companies like A.M. Castle & Company achieve their full potential. This approach has resulted in significant returns for the firm's investors.

At H.I.G. Capital, they take a creative and flexible approach to private equity investment. This approach allows them to consider the capital requirements necessary to meet a company's growth and expansion plans.

They finance transactions in a sensible and prudent manner, taking into account the company's needs to accommodate fluctuations in performance. This helps ensure a comfortable operating cushion for the company.

H.I.G. Capital's investments come in various forms, including control private equity investments, management-backed recapitalizations, and industry consolidations to minority investments.

H.I.G. takes a creative and flexible approach to private equity investment, considering the capital requirements necessary to meet a company's growth and expansion plans.

This approach allows for a comfortable operating cushion to accommodate fluctuations in company performance, ensuring the company's stability and success.

H.I.G. invests in a variety of forms, including control private equity investments and minority investments.

Our investments can also take the form of management-backed recapitalizations and industry consolidations.

Risk Management is a crucial aspect of any investment approach. It's about identifying and mitigating potential risks to achieve your financial goals.

Diversification is a key risk management strategy, as seen in the example of the 60/40 portfolio, which spreads investments across different asset classes to minimize risk. This approach can help reduce the impact of market volatility.

Market volatility can be a significant risk factor, as witnessed during the 2008 financial crisis when global markets experienced a sharp decline. Understanding this risk is essential to making informed investment decisions.

Regular portfolio rebalancing is another risk management technique that can help maintain an optimal asset allocation and minimize the impact of market fluctuations. This can be done by periodically reviewing and adjusting your portfolio to ensure it remains aligned with your investment objectives.

It's essential to have a clear understanding of your risk tolerance and investment horizon to make informed decisions about your investment approach. This will help you determine the right level of risk to take on and avoid making impulsive decisions based on short-term market fluctuations.

H.I.G. Capital has a clear vision for the types of investments they make. They focus on middle market enterprises with enterprise values between $50 million to $1 billion.

These companies typically have high-quality, value-added products that set them apart from the competition. Their growth prospects are also favorable, making them attractive investment opportunities.

The management teams behind these companies are key to H.I.G. Capital's investment decisions. They look for teams with a proven track record of success and a significant equity ownership position in their companies.

This ownership stake motivates the management teams to make smart, long-term decisions that benefit the business and its investors. By investing in companies with strong, motivated leadership, H.I.G. Capital aims to drive growth and returns.