""You had all these geopolitical tensions, and you had this flight to quality with private equity," said Lawson, HGGC's chief executive officer. "The opportunity set for many investors has shifted to what we call mid-cap or middle-market businesses.""
"Limited partners are "more in control than ever," said Young, the firm's chairman and a Pro Football Hall of Fame inductee."
"On the other end, companies and especially other buyout firms are hungry to buy. The so-called dry powder available to private equity firms to put to work is "getting even drier," McKinsey & Co. said in a report this month. It estimates that more than 40% of the dry powder ready to invest has been available for the past two years - much higher than the five-year average."
HGGC raised $3.2 billion for its fifth fund, exceeding an initial target of $2.5 billion and topping a $2.8 billion hard cap. Commitments came from pensions, endowments, family offices and sovereign wealth funds. Higher interest rates and lower distributions reduced fundraising globally, which fell 11% to $490.81 billion in 2025, according to S&P Global Market Intelligence. Rich Lawson noted geopolitical tensions and a flight to quality shifted investor interest to mid-cap and middle-market businesses. The firm's focus on middle-market deals—typically up to $1 billion—appealed to limited partners seeking clear mandates. McKinsey reported that more than 40% of dry powder has been available for over two years, constraining deployment.
Read at The Mercury News
Unable to calculate read time
Collection
[
|
...
]