H.I.G. Capital Secures €1.6B Fund for European Value-Add Plays

MIAMI, FL – January 15, 2026 – In a powerful demonstration of investor confidence, global alternative asset firm H.I.G. Capital has announced the final closing of its H.I.G. Europe Capital Partners IV fund, securing an impressive €1.6 billion in capital commitments. The fund, which targets the continent's lower middle market, was significantly oversubscribed and completed its fundraising in a swift six-month period, a notable achievement in what the firm describes as a "highly competitive fundraising environment."

The rapid influx of capital from a global base of limited partners underscores the market's strong appetite for H.I.G.'s specialized investment approach, which focuses on unlocking value in operationally complex businesses. This successful fundraise not only bolsters H.I.G.'s war chest but also solidifies its position as a dominant force in European private equity, particularly in a segment often overlooked by larger players.

The Proven Blueprint for European Growth

Fund IV is set to continue a strategy that has defined H.I.G.'s nearly two-decade presence in Europe. The firm’s playbook centers on identifying and acquiring control stakes in "undermanaged" European lower middle market companies. These are typically established businesses that have the potential for significant growth but may lack the operational expertise, strategic direction, or capital to achieve it. H.I.G. leverages a team of over 150 investment professionals across its five core European offices in London, Milan, Hamburg, Paris, and Madrid to execute this hands-on approach.

"We are launching Fund IV at a particularly attractive moment in time, with plentiful opportunities to deliver on our differentiated investment approach across the European lower middle market," said Wolfgang Biedermann, Executive Managing Director and Head of H.I.G. Private Equity, Europe. "We focus on control investments in operationally complex and undermanaged businesses, specifically situations where local origination, hands-on execution, and operating depth create a clear competitive advantage."

This strategy is built on a foundation of 92 private equity platform investments completed in the region since 2007. The firm’s success is not merely in identifying targets, but in actively partnering with management teams to drive operational turnarounds, implement growth initiatives, and navigate complex transactions such as corporate carve-outs. Biedermann noted that "the strong performance and momentum from prior vintages provide a solid foundation for continued success," a sentiment clearly echoed by the fund's enthusiastic reception from investors.

A Track Record of Transformation

Beyond strategic statements, H.I.G.’s track record provides tangible evidence of its value-creation model in action. Recent portfolio activity across Europe highlights the firm's ability to transform businesses across diverse sectors. For example, the firm recently announced the proposed sale of Interpath, a global financial advisory business it carved out and grew into an international leader in restructuring and M&A services. Similarly, H.I.G. successfully exited Italian IT operator Project Informatica after its revenues quadrupled through organic growth and seven strategic add-on acquisitions under the firm's ownership.

This pattern of acquisition and enhancement is a core tenet of the firm's identity. H.I.G. has shown a keen eye for established industrial players, such as its strategic investment in the 130-year-old German machine tool manufacturer, HELLER Group, aimed at bolstering its global reach. In France, it acquired the workwear and hygiene services business of Rentokil Initial, a complex corporate carve-out poised for rebranding and independent growth. Another significant transaction was the acquisition of Kantar Media from Kantar Group, separating the media intelligence unit to operate as a standalone entity.

This history of successful interventions in sectors ranging from TMT and business services to industrials and aerospace demonstrates a versatile yet consistent methodology. The firm’s Co-Founders and Co-Executive Chairmen, Sami Mnaymneh and Tony Tamer, commented on this advantage, stating, "H.I.G.'s global platform gives us the scale, resources, and operating capabilities that differentiate us in the middle market. Our longstanding presence in Europe and proven ability to drive value in complex situations have positioned H.I.G. as a partner of choice."

Investor Confidence in a Competitive Climate

The speed and oversubscription of Fund IV's closing are significant indicators in the current global economic climate. Institutional investors, including pension funds, sovereign wealth funds, and family offices, have become increasingly selective, favoring fund managers with demonstrable track records and specialized, defensible strategies. The rush to commit capital to Fund IV suggests these limited partners see the European lower middle market as a source of resilient, non-correlated returns, provided it is navigated by an expert team.

Jordan Peer Griffin, Executive Managing Director and Global Head of Capital Formation, acknowledged this dynamic. "We are grateful for the strong support from our limited partners from around the globe," she said. "In a highly competitive fundraising environment, their continued commitment drove an oversubscribed close in a compressed timeline, reflecting confidence in our strategy, our execution capabilities, and the compelling opportunity set in Europe's lower middle market."

This success indicates a flight to quality, where investors are prioritizing operational alpha—value created through genuine business improvements—over returns generated purely by market trends or financial leverage. H.I.G.'s focus on "complex situations and difficult transaction dynamics" is not seen as a risk but as a competitive moat, allowing it to source unique opportunities and create value where others cannot. cannot.

Reshaping Europe's Mid-Sized Businesses

With €1.6 billion in fresh capital, H.I.G. is now positioned to significantly impact the landscape of Europe’s mid-sized business sector. The capital will be deployed into companies across Western Europe, leveraging the firm’s local presence in Germany, France, Italy, Spain, and the UK to source and manage investments. The targets will likely be companies at an inflection point—whether facing succession issues, requiring capital for international expansion, or needing operational restructuring to remain competitive.

For entrepreneurs and owners of these mid-sized enterprises, an investment from a fund like H.I.G. Europe Capital Partners IV offers more than just capital. It provides access to a global network, deep operational expertise, and a strategic partner dedicated to driving growth and profitability. The deployment of this fund is expected to fuel a new wave of transformations, fostering innovation, creating jobs, and building stronger, more resilient companies that can compete on a global stage. As H.I.G. begins to deploy this new capital, the market will be watching closely to see which of Europe's hidden gems are polished next.