H.I.G. Capital’s Big October: 4 Major Deals Signal Ambitious Growth Strategy
The first weeks of October 2024 have proven remarkably active for H.I.G. Capital, as the Miami-based investment giant rolled out four significant deals that spotlight its diversification strategy. With $65 billion under management, H.I.G. isn’t just spreading its investments across sectors – it’s making calculated bets on some of the most dynamic areas of the global economy.
From content production to aviation services, data centers to software investment, H.I.G.’s October moves read like a playbook for capitalizing on multiple growth trends simultaneously. Let’s break down these strategic plays and what they mean for the investment landscape.
The Content Production Play: Building Europe’s Next Media Hub
What’s the deal? H.I.G. just completed Madrid Content City (MCC), a massive 140,000 square-meter production hub that’s already attracted multinational tenants with long-term leases. But they’re not stopping there – they’ve already launched Sevilla Content City (S.C.C.), adding another 4,000 square meters of production space to their portfolio.
Why it matters:
- The streaming wars continue to drive demand for production facilities
- Europe is becoming increasingly important in global content creation
- Long-term leases provide steady revenue streams
The insider take: “The successful completion of MCC reflects an important milestone for H.I.G. Realty’s strategy in Europe,” says Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe. The expansion into Seville suggests that H.I.G. sees plenty more growth ahead in the content production sector.
Aviation Services: A Strategic Flight Path
What’s the deal? H.I.G. has taken a strategic equity position in S.T.S. Aviation Group, a global player in aviation services with facilities across North America and the U.K. The company’s current management team, led by C.E.O. P.J. Anson, remains in control.
Key assets include:
- 4 state-of-the-art aircraft hangars
- 2 aircraft interior modification facilities
- 45+ line maintenance stations globally
- Comprehensive M.R.O. capabilities
The growth strategy: According to P.J. Anson, the partnership aims to “expand our global presence, enhance our aircraft service offerings, pursue add-on acquisitions, and continue providing innovative, high-quality solutions to our customers.”
The Data Center Power Play: Betting Big on Digital Infrastructure
What’s the deal? H.I.G. has acquired a controlling stake in PolarDC Group Limited, a data center operator focusing on high-performance computing (HPC). Their first Norwegian facility showcases their forward-thinking approach:
Standout features:
- 48MW capacity (fully operational)
- 100% renewable hydroelectric power
- An advanced cooling system utilizing Norway’s climate
- 100% pre-sold initial capacity
Strategic timing: With AI driving unprecedented demand for computing power, H.I.G.’s move into data centers couldn’t be better timed. Andy Hayes, Polar’s C.E.O., specifically highlighted how the partnership positions them to “benefit from the rapid development of artificial intelligence.”
Software Investment Excellence Recognized
Capping off the month’s activities, Ross Hiatt, Managing Director and Head of H.I.G. Growth Partners, received recognition as a top software investor by GrowthCap – for the second year running. This acknowledgment underscores H.I.G.’s technological expertise, particularly in:
- eCommerce
- Fintech
- SaaS
- Enterprise technology
What This Means for H.I.G. Capital
H.I.G.’s October moves reveal a carefully orchestrated strategy targeting multiple high-growth sectors:
- Digital infrastructure (data centers)
- Content creation (production facilities)
- Aviation services (maintenance and operations)
- Technology investment (software and digital services)
Each sector represents a different aspect of the modern economy, from physical infrastructure to digital services. The diversity of these investments and their strategic timing suggest that H.I.G. is positioning itself for multiple growth scenarios while maintaining exposure to stable, revenue-generating assets.
By balancing investments across these sectors, H.I.G. is building a portfolio that can benefit from both immediate market opportunities and long-term structural changes in the global economy. The firm’s ability to execute multiple complex deals simultaneously also demonstrates the depth of its operational capabilities and its commitment to diversified growth.