San Diego has emerged as a prime location for private equity firms, attracting top-tier investors like H.I.G. Capital, JMI Equity, and Gryphon Investors. These firms leverage the city’s robust tech ecosystem, strategic geographic position, and talented workforce to drive innovative investments across diverse sectors. With a thriving entrepreneurial landscape and access to cutting-edge industries, San Diego provides an ideal environment for private equity growth. Interested professionals can explore this dynamic community and connect with like-minded leaders at alexejpikovsky.com/community.
H.I.G. Capital
Investment Style: H.I.G. Capital focuses on leveraged buyouts, growth equity, and distressed investments in small and mid-sized companies. The firm targets a variety of industries including healthcare, technology, consumer products, and industrial sectors, aiming to drive transformational change through strategic and operational improvements.
Portfolio Companies: The firm’s diverse portfolio includes Apollo Towers (telecommunications infrastructure), Amerijet International (cargo airline), and Lionbridge (translation and localization services).
Founding Date: 1993
Number of Investment Professionals: Over 500
Assets Under Management: Over $64 billion
Key Investment Professionals:
- Sami Mnaymneh, Co-Founder and Co-CEO: Mnaymneh has been instrumental in developing H.I.G.’s investment strategy and firm growth since its inception.
- Tony Tamer, Co-Founder and Co-CEO: Tamer plays a critical role in shaping the firm’s strategic direction and investment decisions across various sectors.
Recent Exits:
- Infinis Energy, a leading renewable energy generator in the UK, was exited through a secondary buyout.
- Vantage Specialty Chemicals was sold to an affiliate of The Jordan Company.
Recent Acquisitions:
- Realtime, a provider of digital experience solutions, was acquired to expand H.I.G.’s technology portfolio.
- Healthcare Linen Services Group, a provider of healthcare laundry services, to enhance their healthcare investments.
Office Locations:
- Miami (Headquarters): 1450 Brickell Avenue, 31st Floor, Miami, FL 33131
- Additional Offices: San Diego, Boston, Chicago, Dallas, Los Angeles, New York, and international locations including London, Hamburg, and Paris.
Website: https://www.higcapital.com
Quote: “Our primary focus is on partnering with management teams to unlock the full potential of their organizations through strategic and operational guidance.” – Sami Mnaymneh, Co-Founder and Co-CEO
JMI Equity
Investment Style: JMI Equity specializes in growth equity investments in software and technology-enabled services businesses. The firm focuses on providing capital to high-growth companies and partners with management teams to achieve sustainable growth and scale operations.
Portfolio Companies: JMI’s portfolio includes companies like Arena (workforce management solutions), CipherHealth (healthcare software solutions), and Schoology (learning management systems).
Founding Date: 1992
Number of Investment Professionals: Over 40
Assets Under Management: Approximately $6 billion
Key Investment Professionals:
- Paul Barber, Managing General Partner: Barber has been with JMI Equity since its inception and has led numerous successful investments in the software sector.
- Peter Arrowsmith, General Partner: Arrowsmith focuses on investments in education technology and enterprise software, providing strategic insight and operational support.
Recent Exits:
- Seismic, a sales enablement platform, went public through an IPO.
- CloudHealth Technologies was acquired by VMware.
Recent Acquisitions:
- Investment in Axonius, a cybersecurity asset management platform.
- Participation in the funding round for Levelset, a construction payment management software provider.
Office Locations:
- Baltimore (Headquarters): 100 International Drive, Baltimore, MD 21202
- Additional Offices: San Diego
Website: https://www.jmi.com
Quote: “Our passion lies in helping entrepreneurs and their teams build market-leading companies through partnership and collaboration.” – Paul Barber, Managing General Partner
Gryphon Investors
Investment Style: Gryphon Investors focuses on middle-market companies, targeting growth through operational improvements and strategic initiatives. The firm invests in sectors such as business services, consumer, healthcare, and industrial growth.
Portfolio Companies: Gryphon’s portfolio includes companies like Shermco Industries (electrical testing and maintenance services), LEARN Behavioral (provider of autism treatment services), and Repipe Specialists (home repiping services).
Founding Date: 1995
Number of Investment Professionals: Over 50
Assets Under Management: Over $8 billion
Key Investment Professionals:
- David Andrews, Founder and CEO: Andrews is responsible for the overall strategic direction and execution of Gryphon’s growth initiatives.
- Wes Lucas, Operating Partner: Lucas brings extensive operational expertise to Gryphon’s portfolio companies, enhancing their growth and efficiency.
Recent Exits:
- Milani Cosmetics was successfully sold to a strategic buyer.
- RegEd was divested to Leeds Equity Partners.
Recent Acquisitions:
- Acquisition of Metagenics, a nutraceutical company.
- Investment in Vivify Specialty Ingredients, a specialty chemicals company.
Office Locations:
- San Francisco (Headquarters): One Market Plaza, Spear Tower Suite 2200, San Francisco, CA 94105
- Additional Offices: San Diego, Los Angeles
Website: https://www.gryphoninvestors.com
Quote: “Our team is dedicated to working closely with management to accelerate growth and drive value creation.” – David Andrews, Founder and CEO
Housatonic Partners
Investment Style: Housatonic Partners is a private equity firm focusing on buyouts and growth equity investments in recurring revenue business services, healthcare services, and media and communications. The firm seeks to partner with management teams to build enduringly profitable businesses.
Portfolio Companies: Their portfolio includes companies like Denali Water Solutions (biosolids management), Carillon Assisted Living (senior living), and QCC (quality control services).
Founding Date: 1994
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $1.5 billion
Key Investment Professionals:
- David Parker, Managing Director: Parker focuses on business services and healthcare investments, providing strategic oversight and guidance.
- Doug MacDonald, Managing Director: MacDonald specializes in growth strategies and operational improvements in portfolio companies.
Recent Exits:
- Exited Access Information Management through a sale to Berkshire Partners.
- Selling of InHealth MD Alliance to Cano Health.
Recent Acquisitions:
- Investment in Wedgewood Pharmacy, a compounding pharmacy.
- Acquisition of a majority stake in QCC, a quality assurance company.
Office Locations:
- San Francisco (Headquarters): One Embarcadero Center, 37th Floor, San Francisco, CA 94111
- Additional Offices: San Diego, Boston
Website: https://www.housatonicpartners.com
Quote: “We are committed to building strong, sustainable businesses by forging long-term partnerships with exceptional management teams.” – David Parker, Managing Director
Valor Equity Partners
Investment Style: Valor Equity Partners focuses on investing in companies across various stages of growth, predominantly in technology-enabled industries. The firm emphasizes operational value creation and works closely with management teams to drive innovation and expansion.
Portfolio Companies: Valor’s portfolio includes SpaceX (aerospace manufacturer), Tesla (electric vehicle manufacturer), and Addepar (wealth management technology).
Founding Date: 1995
Number of Investment Professionals: Over 30
Assets Under Management: Over $4 billion
Key Investment Professionals:
- Antonio Gracias, Founder and CEO: Gracias is responsible for the strategic direction of the firm and has played a pivotal role in its key investments.
- Jon Shulkin, Partner: Shulkin oversees investment activities and strategic partnerships within Valor’s portfolio companies.
Recent Exits:
- Exit from Bird Rides, a scooter-sharing company.
- Public offering of Tesla, with continued partnership post-IPO.
Recent Acquisitions:
- Investment in Amp Robotics, a leader in AI and robotics for the recycling industry.
- Participation in the funding round for GoPuff, an on-demand delivery service.
Office Locations:
- Chicago (Headquarters): 875 North Michigan Avenue, Suite 3214, Chicago, IL 60611
- Additional Offices: San Diego, New York, San Francisco
Website: https://www.valorep.com
Quote: “Our commitment to innovation and operational excellence is what sets us apart in the investment community.” – Antonio Gracias, Founder and CEO
TA Associates
Investment Style: TA Associates focuses on buyouts and growth equity investments in technology, healthcare, consumer and business services, and financial services sectors. The firm partners with management teams to help companies realize their potential and achieve growth objectives.
Portfolio Companies: TA Associates’ portfolio includes companies like ZoomInfo (business intelligence), AxiomSL (regulatory reporting and risk management), and Russell Investments (investment management firm).
Founding Date: 1968
Number of Investment Professionals: Over 85
Assets Under Management: Over $50 billion
Key Investment Professionals:
- Brian Conway, Chairman: Conway focuses on strategic growth initiatives and has been instrumental in expanding TA’s global presence.
- A.J. Rohde, Senior Partner: Rohde specializes in technology and software investments, providing strategic guidance and operational expertise.
Recent Exits:
- Exited Mistral Equity Partners through a strategic merger with a market leader.
- Successful public offering of ZoomInfo, a significant investment within TA’s portfolio.
Recent Acquisitions:
- Investment in MRI Software, a provider of real estate software solutions.
- Acquisition of Flexera, a global leader in technology asset management solutions.
Office Locations:
- Boston (Headquarters): 200 Clarendon Street, 56th Floor, Boston, MA 02116
- Additional Offices: San Diego, Menlo Park, London, Mumbai, Hong Kong
Website: https://www.ta.com
Quote: “We focus on building enduring relationships with management teams to drive sustainable growth and value creation.” – Brian Conway, Chairman
Genstar Capital
Investment Style: Genstar Capital specializes in investments in middle-market companies within the financial services, software, industrial technology, and healthcare industries. The firm works closely with management teams to drive growth through strategic initiatives and operational enhancements.
Portfolio Companies: Genstar’s portfolio includes companies like Apex Group (financial services provider), Bracket (clinical trial technology), and Drillinginfo (energy industry data and analytics).
Founding Date: 1988
Number of Investment Professionals: Over 60
Assets Under Management: Over $33 billion
Key Investment Professionals:
- Jean-Pierre Conte, Chairman and Managing Director: Conte focuses on strategic investments in financial services and has played a key role in Genstar’s growth.
- Rob Rutledge, Managing Director: Rutledge specializes in healthcare investments, offering strategic oversight and operational support for portfolio companies.
Recent Exits:
- Sale of Accruent, a provider of real estate and facilities management software solutions.
- Exit from Institutional Shareholder Services (ISS) through a public offering.
Recent Acquisitions:
- Investment in Advarra, a clinical research compliance solutions provider.
- Acquisition of Vector Solutions, a leader in e-learning and performance support solutions.
Office Locations:
- San Francisco (Headquarters): Four Embarcadero Center, Suite 1900, San Francisco, CA 94111
- Additional Offices: San Diego
Website: https://www.gencap.com
Quote: “Our rigorous approach to value creation and operational improvements consistently drives superior outcomes for our investors and portfolio companies.” – Jean-Pierre Conte, Chairman and Managing Director
HGGC
Investment Style: HGGC is a private equity firm that focuses on leveraged buyouts, recapitalizations, and growth equity investments in the middle market. The firm specializes in technology, business services, healthcare, industrial services, and consumer sectors.
Portfolio Companies: HGGC’s portfolio includes companies such as Nutraceutical International Corporation (nutritional supplements), AutoAlert (automotive software), and Dealer-FX (automotive retail software).
Founding Date: 2007
Number of Investment Professionals: Over 40
Assets Under Management: Approximately $6.8 billion
Key Investment Professionals:
- Rich Lawson, CEO and Co-Founder: Lawson oversees all investment activities and plays a significant role in strategic decisions.
- Steve Young, President and Co-Founder: Young focuses on identifying and nurturing portfolio companies to achieve their growth potential.
Recent Exits:
- Sale of Serena Software to Micro Focus.
- Divestment of hybris software to SAP.
Recent Acquisitions:
- Investment in Davies Group, a provider of professional services and technology solutions.
- Acquisition of Monotype, a leader in font design and technology.
Office Locations:
- Palo Alto (Headquarters): 1950 University Avenue, Suite 350, Palo Alto, CA 94303
- Additional Offices: San Diego, Salt Lake City, New York
Website: https://www.hggc.com
Quote: “Our partnership-driven approach with management teams creates scalable, enduring businesses that deliver value.” – Rich Lawson, CEO and Co-Founder
Silver Lake Partners
Investment Style: Silver Lake Partners focuses on large-scale investments in technology, technology-enabled, and related growth industries, emphasizing long-term value creation in partnership with management teams.
Portfolio Companies: Their portfolio includes Airbnb (online marketplace for lodging), Lightbox (media technology), and SolarWinds (IT management software).
Founding Date: 1999
Number of Investment Professionals: Over 100
Assets Under Management: Over $98 billion
Key Investment Professionals:
- Egon Durban, Co-CEO and Managing Partner: Durban is known for leading Silver Lake’s strategy in technology investments.
- Greg Mondre, Co-CEO and Managing Partner: Mondre has been pivotal in expanding Silver Lake’s influence in the tech industry globally.
Recent Exits:
- Public offering of Unity Software.
- Sale of MotorTrend Group to Discovery, Inc.
Recent Acquisitions:
- Investment in Qualtrics, an experience management company.
- Acquisition of a stake in Twitter.
Office Locations:
- Menlo Park (Headquarters): 2775 Sand Hill Road, Suite 100, Menlo Park, CA 94025
- Additional Offices: San Diego, New York, London, Hong Kong
Website: https://www.silverlake.com
Quote: “Our focus on technology investments allows us to harness the power of innovation to drive transformative growth.” – Egon Durban, Co-CEO and Managing Partner
San Diego’s private equity landscape continues to evolve, presenting dynamic opportunities for strategic investors. The region’s diverse economic ecosystem and robust technology sectors make it an attractive destination for PE firms seeking high-potential acquisitions. As the market matures, firms are increasingly focusing on targeted, value-driven investments that maximize exit potential.
For those looking to dive deeper into the nuanced world of business exits and strategic acquisitions, I invite you to subscribe to my YouTube channel at @alexejpikovsky. Each week, I’ll share insider insights that can help you understand the intricate pathways to successful business transitions.