H.I.G. Capital Bets Big on Insurance with New Division and Veteran Hires

MIAMI and NEW YORK – March 30, 2026 – In a decisive move signaling a major strategic expansion, global alternative investment firm H.I.G. Capital has announced the formation of a dedicated insurance division, aiming to capture a significant share of the burgeoning market for managing insurance company assets. The firm, which manages $74 billion in capital, underscored its commitment by appointing two seasoned industry veterans, Clark Jeffries and Gary Droscoski, to spearhead the initiative.

Clark Jeffries joins as Managing Director and Global Head of Insurance, while Gary Droscoski has been named a Managing Director in the firm's Capital Formation Group. The hires and the creation of a new insurance vertical represent H.I.G.'s formal entry into a competitive but lucrative space, positioning the firm to develop investment strategies tailored specifically for insurance company balance sheets and to make direct strategic investments in the sector.

A Strategic Pivot to Insurance Capital

H.I.G.'s expansion is not happening in a vacuum. It is a calculated response to a profound shift in the financial landscape, where insurance companies are increasingly turning to alternative asset managers to navigate a complex investment environment. For years, insurers have been grappling with the challenge of generating sufficient returns from traditional fixed-income portfolios to meet their long-duration liabilities. This has fueled a massive migration of capital towards private markets.

This new division will build a dedicated insurance vertical that leverages H.I.G.'s extensive platform across private credit, private equity, and real assets. The goal is to originate and structure investments from a "liability-driven orientation," creating bespoke, capital-efficient solutions that align directly with the needs of insurers. This approach is critical for insurance companies, which operate under strict regulatory capital requirements that dictate how they can invest.

"We see significant opportunity to expand our investment capabilities in the middle market where increasing complexity and demand for specialized capabilities are creating attractive investment opportunities for the insurance channel," said Brian Schwartz, Co-President of H.I.G. "Insurance capital is increasingly aligned with long-duration, asset-based strategies where H.I.G. has strong expertise, and this initiative enhances our ability to originate and scale investments in these areas."

While H.I.G. has previously invested in insurance-adjacent businesses like the marketplace eHealth, this move marks a fundamental pivot from opportunistic investments to building a core strategic pillar focused entirely on the insurance ecosystem.

The Talent Driving the Ambition

To succeed in the highly specialized world of insurance asset management, expertise is paramount. H.I.G.'s appointments of Jeffries and Droscoski signal a clear intent to build its new division on a foundation of deep industry knowledge.

Clark Jeffries, as the new Global Head of Insurance, brings a crucial perspective from the client's side of the table. In his most recent role as Chief Investment Officer of Somerset Reinsurance Limited, he was directly responsible for managing an insurer's balance sheet. This firsthand experience provides invaluable insight into the specific pressures, objectives, and constraints that drive investment decisions within an insurance company. His prior experience as a Managing Director in the Financial Institutions Group at Bank of America further rounds out his nearly two decades in the field. At H.I.G., he will be responsible not only for executing strategic investments but also for designing the very products that will be offered to insurance clients.

Complementing Jeffries' investment and strategy role is Gary Droscoski, who will focus on building relationships and raising capital from insurance investors. With over 25 years in institutional sales, Droscoski has a long track record of connecting investment solutions with the institutions that need them. His senior roles at industry giants like PGIM Private Alternatives and New York Life Investments, as well as his time as Head of Business Development at GAM Investments, have given him a vast network and a nuanced understanding of the institutional sales cycle.

As Jordan Peer Griffin, Executive Managing Director and Head of H.I.G.'s Capital Formation Group, noted, "Clark and Gary bring complementary experience across investing and capital formation that supports our continued growth with insurance clients."

Targeting the Underserved Middle Market

While behemoth asset managers like Blackstone and Apollo have built formidable insurance businesses by partnering with or acquiring major carriers, H.I.G. appears to be charting a more focused course. The firm’s historical strength lies in the middle market—a segment of the economy often overlooked by larger players. This same strategy is now being applied to the insurance world.

H.I.G. aims to serve the vast landscape of regional, specialized, and mid-sized insurers. These firms face the same pressures as their larger counterparts but often lack the internal resources, dedicated teams, and scale to access the best opportunities in private markets. They are frequently too small to command the attention of the largest alternative managers, creating a service gap that H.I.G. is uniquely positioned to fill.

By leveraging its established origination platform, which sources deals across a wide range of industries and asset types, H.I.G. can offer these mid-sized insurers access to a diversified portfolio of private credit, real estate, and private equity investments that would otherwise be out of reach. The firm's ability to offer tailored, liability-driven solutions is a powerful differentiator for this segment, which requires more than just off-the-shelf products.

"H.I.G. has built a strong platform across private credit, private equity, and real assets, with a differentiated ability to originate in the middle market," Clark Jeffries commented on his new role. "I am excited to join the firm at a time when insurance investors are seeking scaled access to high-quality opportunities, and to help further develop strategies aligned with their investment objectives."

This middle-market focus allows H.I.G. to avoid direct, head-to-head competition with the industry's largest players and instead build a defensible and highly valuable franchise in a segment with significant growth potential.