HGGC has closed its third fund with aggregate capital commitments of $1.84 billion, with $90 million from the firm’s general partners, including Steve Young, the former San Francisco 49ers quarterback. Fund III was raised in less than 100 days, according to the private equity firm, which is based in Palo Alto, California. HGGC invests in middle-market companies in such sectors as technology and information services, business and financial services, and industrial services.
Fund III, which was launched on Sept. 6 and closed on Dec. 14, was raised much more quickly than the firm’s previous funds, HGGC CEO Rich Lawson tells Mergers & Acquisitions. The firm’s first fund took about a year and a half to raise, and the second one took about a year, Lawson recalls.