What Comes Next for a Three-Decade-Old Platform

After 32 years building HIG Capital, Sami Mnaymneh faces questions about the firm’s future direction. The platform manages $70 billion across seven strategies, operates 19 offices worldwide and has invested in more than 400 companies. What comes next for an organization of this scale and maturity?

Mnaymneh serves as founder, executive chairman and CEO. At some point, leadership succession will occur. The firm has developed deep management ranks, but transition timing remains unaddressed publicly. This eventual change will significantly affect the organization’s trajectory.

Beyond succession, strategic questions loom. Can the firm continue growing? Should it maintain current scale and optimize existing capabilities? Will new strategies emerge beyond the current seven? How will changing market conditions affect the middle-market focus that defined the firm’s identity?

Current market environment presents both challenges and opportunities. Elevated interest rates affect borrowing costs and exit valuations. However, operational value creation emphasis potentially matters more when financial engineering contributes less to returns. The capabilities HIG Capital built over decades may prove increasingly relevant.

The secondaries initiative launched recently represents strategic adaptation. Entering GP-led continuation funds provides additional deployment options as traditional exit markets face headwinds. Whether other strategic expansions follow depends on market evolution and leadership decisions.

Geographic expansion could continue. While the firm operates across five continents, room exists for deeper presence in existing markets or entry into new regions. Each expansion requires investment before generating returns, requiring careful evaluation of opportunities.

Technology disruption affects both portfolio companies and private equity operations. Firms must help portfolio companies navigate digital transformation while also deploying technology to enhance their own sourcing, evaluation and portfolio management processes. Adaptation becomes increasingly important.

Before founding HIG Capital with Tony Tamer in 1993, Mnaymneh built expertise at Morgan Stanley and The Blackstone Group after graduating first in his class from Columbia and earning J.D. and M.B.A. degrees from Harvard. That foundation supported three decades of growth. Whether it continues guiding the next phase depends on execution and market conditions.