H.I.G. Capital Closes $2 Billion U.S. Lower Middle-Market Fund

H.I.G. Capital has closed H.I.G. Capital Partners VII with $2 billion in commitments, exceeding its original target. The fund, announced in October 2024, focuses on control equity investments in under-managed and growth-oriented U.S. businesses with less than $15 million in EBITDA.

The firm reported that Fund VII was significantly oversubscribed, with strong support from both new and existing limited partners. Since its founding in 1993, H.I.G. has invested in more than 400 companies. Its current portfolio of over 100 companies generates more than $53 billion in combined sales. Assets under management stand at approximately $70 billion across private equity, credit, real estate, and infrastructure strategies.

Investor Demand Across Platforms

The closing of Fund VII follows other recent fundraising milestones for the firm. In August 2025, H.I.G. WhiteHorse, its credit affiliate, announced the final close of H.I.G. WhiteHorse Middle Market Lending Fund IV at $5.9 billion, the largest direct lending vehicle in the firm’s history. In July 2024, the firm also raised $1.3 billion for H.I.G. Europe Realty Partners III, expanding its real estate presence across the U.K. and Germany.

In a statement on the Fund VII close, Executive Chairman and CEO Sami Mnaymneh and Executive Chairman Tony Tamer said the firm has been disciplined in maintaining its middle-market focus and is “extremely proud of the consistent results delivered for investors.” They added that Fund VII is positioned to achieve strong performance through H.I.G.’s scale, operational capabilities, and value-creation approach.

Commenting on the WhiteHorse IV close, Mnaymneh and Tamer said H.I.G. is “one of the largest and most active credit investors in the middle market” and expressed confidence that its platform, targeting both sponsor and non-sponsor borrowers, will continue to differentiate the firm in the lending space.

Strategic Initiatives

Beyond fundraising, H.I.G. has launched a GP Solutions platform, announced in August 2025, to pursue GP-led continuation strategies and secondaries transactions. The initiative is expected to expand the firm’s product offering and provide additional liquidity options for investors, with a dedicated fundraise targeted for early 2026.

H.I.G. has also remained active in transaction activity. In July 2025, the firm’s growth equity affiliate sold a majority stake in The GLD Shop while retaining a minority interest, noting that the company achieved more than 130 percent revenue growth during the investment period. That same month, H.I.G. completed the acquisition of Canadian fuel services business 4Refuel in a deal valued at up to CAD 400 million.

Global Platform

Headquartered in Miami with offices across North America, Europe, and Latin America, H.I.G. Capital employs more than 600 investment professionals. The firm continues to expand across asset classes while retaining its original focus on middle-market investing.