Tag Archives: Banking Professional

HGGC: How This PE Firm Is Both Esteemed And Challenged

In 2007, California’s financial industry gained an acclaimed middle-market private equity firm. HGGC, said PE firm, seeks to empower companies that are on the cusp of transcending success. Founded by Richard Lawson, Lance Taylor, and Steve Young, HGGC forges partnerships with founder-owners, management teams, and sponsors in hopes of “building differentiated businesses in North America.” However, Lawson, Taylor, and Young intend to extend well beyond their American roots and diversify their clientele. Since its claim to fame, HGGC’s ushered in a new era of investing. Strong proponents of advantaged investing, Young, Lawson, and Taylor infuse modern practices into their operations.

In short, the advantaged investing paradigm allows the firm to acquire scalable companies. One such business that’s reaped the benefits of HGGC’s advantaged investing model is FPX. A leader in CPQ solutions, FPX exhibits the promise and intrigue that HGGC looks for in burgeoning companies. As a result, FXP’s received substantial funding from the PE firm. Young, Lawson, and Taylor hope that their capital donations will contribute to FXP’s global expansion. Lawson states that he was eager to catapult FXP into a “prime position” and forecasts sizable growth within the near future. What’s more, Lawson applauds FXP’s “unmatched domain expertise.”

Though HGGC’s successes overshadow their pitfalls, the company has not been without its controversy. In fact, A. Schulman, a global leader in plastic compounding products, sued Young and his colleagues in 2016 after discovering some shady activity within one of the company’s subsidiaries, Citadel Plastics. After acquiring Citadel, A. Schulman conducted research that brought to light some falsified test results. Young promptly denied the accusations, claiming that nor he or his company would ever entertain such dubious practices. There’s currently a civil trial in the works, and A. Schulman is suing the firm for their alleged transgressions in the amount of $275 million.

https://www.hggc.com/