HGGC has raised $3.2bn for its fifth flagship fund, surpassing both its $2.5bn target and $2.8bn hard cap despite a muted global fundraising backdrop, according to a report by Bloomberg.

The vehicle secured commitments from pensions, endowments, family offices, and sovereign wealth funds. Global private equity fundraising fell 11% in 2025 to $490.81bn, marking the second consecutive year of decline.

Chief executive Rich Lawson said: “You had all these geopolitical tensions, and you had this flight to quality with private equity. The opportunity set for many investors has shifted to what we call mid-cap or middle-market businesses.”

HGGC concentrates on middle-market transactions, typically involving deals of up to $1bn. The strategy appears to have resonated with limited partners seeking clearer mandates in a more selective environment.

The firm manages more than $10bn. Its third fund, raised in 2017, returned approximately 2.3x investors’ capital on a net basis with a 24% net IRR. Its fourth fund, raised in 2020, generated around 1.6x net and a 19% net IRR.

HGGC also highlighted leadership continuity, having elevated David Chung, Bill Conrad, Steven Leistner, and Neil White to managing partner roles in recent years.

The $3.2bn close underscores continued LP appetite for established middle-market managers with demonstrable performance, even as broader fundraising conditions remain constrained.

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