Private equity firms typically start with a single strategy and sometimes expand into adjacent areas. Few build truly diversified platforms spanning seven distinct strategies. Sami Mnaymneh took HIG Capital from single buyout fund to multi-strategy platform managing $70 billion over three decades.

The expansion wasn’t random. Each strategy addresses middle-market opportunities while leveraging capabilities developed through earlier investments. Together, they create a platform providing multiple forms of capital to companies at different development stages.

Mnaymneh serves as founder, executive chairman and CEO of the firm he launched with Tony Tamer in 1993. HIG Capital now operates 19 offices worldwide and employs over 1,000 people. Understanding how the firm built this diversified platform offers insights into strategic evolution.

The Foundation Strategy

HIG Capital began with traditional leveraged buyouts targeting middle-market manufacturing and service businesses. This provided the foundation for everything that followed. Early success validated the thesis that middle-market companies offered attractive investment opportunities with less competition than mega-deals.

The buyout strategy focused on companies with enterprise values between $50 million and $500 million. These businesses typically had operational improvement potential that sophisticated investors could unlock. The firm built capabilities for working directly with portfolio companies on value creation initiatives.

Mnaymneh’s background prepared him for this operational focus. He graduated first in his class at Columbia University with a B.A. summa cum laude, then earned both a J.D. from Harvard Law School and an M.B.A. from Harvard Business School with honors. Following roles at Morgan Stanley and as a managing director at The Blackstone Group, he understood both financial structures and business operations.

The initial buyout funds established HIG Capital’s reputation and provided foundation for expansion. Limited partners committing to early funds would later support new strategies as the firm demonstrated execution capabilities.

Growth Equity Addition

Growth equity emerged as a natural extension of buyout capabilities. The firm encountered companies not ready for full buyouts but needing capital to scale operations. Rather than passing on these opportunities, HIG Capital developed growth equity capabilities.

Growth equity investments provide capital without acquiring control. The firm takes minority stakes, typically 20-40%, supporting businesses pursuing expansion. This requires different skills than buyouts but leverages operational expertise developed through buyout investments.

Growth equity companies often need help with sales force expansion, market entry strategies, technology implementation and other scaling challenges. HIG Capital’s operational focus allowed providing value beyond just capital.

The growth equity strategy also diversified the platform. While buyouts target mature businesses, growth equity focuses on companies earlier in development cycles. This creates different risk-return profiles and return timing, smoothing overall portfolio performance.

Direct Lending Platform

WhiteHorse, the direct lending arm, represented more substantial expansion. Launching a lending platform required building different capabilities than equity investing. Credit analysis, loan documentation, portfolio monitoring and workout processes all differ from equity approaches.

However, the middle-market focus remained consistent. WhiteHorse provides flexible debt capital to companies with EBITDA between $30 million and $100 million. Banks had retreated from many middle-market loans following the 2008 financial crisis, creating opportunity for alternative lenders.

The lending platform has grown into one of HIG Capital’s largest strategies. WhiteHorse has invested approximately $18 billion in 285 companies since inception. The fourth fund closed at $5.9 billion in August 2025, demonstrating substantial institutional demand.

Fund IV targets senior secured loans to both sponsor-backed and non-sponsor borrowers. The lending platform competes with banks, business development companies and other direct lenders while leveraging relationships developed through HIG Capital’s broader platform.

Direct lending also generates different cash flows than equity strategies. Loans produce regular interest income rather than relying on exits for returns. This creates more predictable distributions to limited partners, complementing lumpier equity distributions.

Real Estate Strategy

Real estate investments focus on value-add properties requiring operational improvements or repositioning. This strategy applies private equity principles to real estate assets rather than operating companies.

The approach targets properties with improvement potential. Renovations, tenant repositioning, operational enhancements and other initiatives drive value creation. This operational focus aligns with HIG Capital’s broader philosophy.

Real estate also provides diversification beyond operating companies. Property values respond to different factors than operating business values. This diversification benefits both the firm and limited partners seeking varied exposure.

Recent real estate transactions have included logistics properties, life sciences facilities, student housing, self-storage facilities and other property types across North America and Europe. Geographic diversification within real estate further enhances portfolio construction.

Infrastructure Investments

Infrastructure strategy targets essential service providers with predictable cash flows. These businesses operate in regulated or high-barrier industries providing critical services.

Infrastructure investments typically generate steady returns through operating cash flows rather than dramatic growth. This creates different risk-return profiles than buyouts or growth equity, appealing to limited partners seeking stable returns.

Recent infrastructure transactions have included waste management companies, smart mobility providers and other businesses operating critical infrastructure. European infrastructure investments have proven particularly active as HIG Capital expanded internationally.

The strategy requires understanding regulatory environments, concession agreements, public-private partnerships and other infrastructure-specific structures. Building this expertise allowed pursuing opportunities other middle-market firms might avoid.

Special Situations Debt

Special situations debt targets companies facing challenges but with viable underlying businesses. These investments provide capital to companies that may not qualify for traditional lending but offer attractive risk-adjusted returns.

The strategy requires sophisticated credit analysis and workout expertise. Companies accessing special situations debt often have near-term challenges but paths to recovery. Proper underwriting identifies situations where capital provision generates attractive returns.

Special situations debt complements other strategies. Portfolio companies from buyout or growth equity investments sometimes need flexible debt solutions. The special situations capability allows providing capital across capital structures.

Healthcare Growth Strategy

Growth-stage healthcare focuses on earlier-stage companies with promising technologies or services. This strategy sits between traditional venture capital and growth equity, targeting companies past proof-of-concept but not yet scaled.

Healthcare requires specialized expertise given scientific complexity and regulatory requirements. Building this capability allowed pursuing opportunities in devices, diagnostics, healthcare IT and other high-growth segments.

The healthcare growth strategy also provides option value. Successful early-stage investments can transition to buyout or growth equity strategies as companies mature. This creates multiple touch points across company lifecycles.

Platform Integration

Seven strategies create both opportunities and challenges. The platform allows providing various capital forms to companies at different stages. A business might receive growth equity initially, later refinance with WhiteHorse debt, then pursue a buyout backed by private equity funds.

However, multiple strategies also create coordination demands. Determining which strategy fits specific opportunities requires understanding trade-offs. Some opportunities might work for multiple strategies, requiring internal coordination about optimal approaches.

Mnaymneh maintains personal approval authority across all strategies. This centralized decision-making ensures consistency while preventing internal competition for deals. Investment teams understand ultimate review applies regardless of strategy.

The firm employs over 500 investment professionals working across strategies. Building expertise in seven distinct approaches required substantial investment in hiring, training and capability development. Not all multi-strategy expansions succeed, but HIG Capital’s sustained growth suggests effective execution.

Performance Implications

How has diversification affected performance? Multiple strategies create several potential benefits. First, they smooth return timing. Different strategies generate distributions at different points, creating more consistent cash flows to limited partners.

Second, diversification provides flexibility during varying market conditions. When equity valuations appear stretched, more capital can flow to debt strategies. When debt markets tighten, equity strategies pursue opportunities. This adaptability helps maintain deployment through cycles.

Third, multiple strategies expand the opportunity set. The firm can evaluate more potential investments when not limited to single strategies. This potentially improves overall portfolio quality by increasing selectivity.

However, diversification also carries risks. Managing seven strategies requires broader expertise than focusing on single approaches. Resources spread across strategies might achieve less depth than concentrated efforts. Platform complexity increases coordination demands.

HIG Capital’s sustained growth over three decades suggests benefits have outweighed costs. The firm successfully raised funds across multiple strategies, indicating limited partners view diversification as enhancing rather than diluting value.

Competitive Positioning

Few middle-market firms operate across seven strategies. Most focus on buyouts with perhaps one or two complementary strategies. This concentration allows building deep expertise but limits flexibility.

HIG Capital’s diversification creates competitive advantages. The firm can provide various capital forms, increasing relevance to both portfolio companies and deal sources. Sellers working with HIG Capital gain access to multiple funding options.

However, mega-funds like Blackstone, KKR and Apollo also operate multi-strategy platforms. These firms have greater scale and resources than middle-market focused competitors. HIG Capital’s middle-market focus differentiates from mega-funds while diversification differentiates from other middle-market firms.

The combination creates distinctive positioning: diversified strategies with middle-market focus. This occupies a unique space in private equity landscapes, neither purely focused nor mega-fund scale.

Looking Forward

After building seven strategies over three decades, questions arise about future expansion. Will HIG Capital add additional strategies or focus on optimizing existing capabilities? The firm hasn’t announced new strategies recently, suggesting emphasis on current platform.

Each strategy continues evolving. WhiteHorse recently closed its fourth fund at $5.9 billion, demonstrating continued growth. Other strategies also raise new funds periodically as predecessor funds mature.

Geographic expansion continues across existing strategies. Rather than adding strategies, the firm expands geographic reach within current approaches. This leverages existing expertise while accessing new markets.

Leadership succession will affect strategic direction. Mnaymneh and Tamer remain actively involved after 32 years. Eventually, new leadership will determine whether the multi-strategy platform continues, consolidates or expands further.

For now, the seven-strategy platform Mnaymneh built continues characterizing HIG Capital’s identity. The diversification distinguishes the firm while maintaining middle-market focus across all strategies.