Highgate Capital Investments is a private equity firm focused on leveraged buyout and growth capital investments. Based in Danbury, CT and San Francisco, CA, it invests primarily in healthcare, software, financial services and consumer products. Highgate makes both minority and majority investments ranging from $10 million to over $100 million. Some of its notable investments have included Diplomat Specialty Pharmacy, Blue Apron, CultureIQ, Forest2Market. Over the years, Highgate has invested billions of dollars through its various funds. Its investment strategies focus on identifying high growth companies and helping them expand further through additional capital and strategic guidance.
Highgate focuses investment in high-growth companies in certain key sectors
According to Highgate Capital’s website and news reports, the firm specializes in making investments in the healthcare, software, financial services and consumer products sectors. Within healthcare, it targets healthcare services, medical products and specialty pharmaceuticals. In software, Highgate looks to invest in SaaS, FinTech and InsureTech companies. For financial services, payments and specialty finance are areas of interest. And in consumer, Highgate focuses on consumer products and services with strong brands and distribution.
This sector-focused strategy allows Highgate to leverage its partners’ operational expertise to add value after making investments. For example, the firm helped Diplomat Pharmacy accelerate growth after investing by facilitating key acquisitions. It also assisted CultureIQ expand through adding resources and making add-on acquisitions in the HR tech sector.
Highgate invests through various funds with billions under management
Highgate Capital manages capital through a series of private equity funds, currently Highgate Capital Fund V with over $500 million of capital. Previous funds include Highgate Capital Fund IV ($476 million) and Highgate Capital Fund III ($277 million). In total over the firm’s history, Highgate has invested several billion dollars into companies across its target sectors.
The firm’s funds have a 10+ year life and aim to make investments of $10-$100+ million that allow for both minority and control transactions. The deals often involve leveraged buyouts or recapitalizations that provide capital for growth, acquisitions or shareholder liquidity.
Major Highgate Capital investments include Blue Apron, Forest2Market and Diplomat Pharmacy
Some of Highgate Capital’s most notable investments include:
– Blue Apron: Highgate was the lead investor in meal kit provider Blue Apron’s $135 million Series D financing in 2015. It further invested $40 million more in 2017.
– Forest2Market: Highgate invested in this wood products supply chain manager to help expand capabilities and accelerate growth. Deal size was not disclosed.
– Diplomat Pharmacy: Highgate invested $100 million into this specialty pharmacy provider in 2014 and helped facilitate key add-on acquisitions before the company went public.
– CultureIQ: Highgate invested $32 million into this HR tech company focused on employee engagement and performance management in 2021. The capital was used to accelerate growth through M&A and new hires.
As a private equity firm, Highgate Capital focuses its investment strategy on high-growth companies within healthcare, software, financial services and consumer products. It invests through funds worth hundreds of millions of dollars into each deal, providing capital for expansion, acquisitions or liquidity events. Major investments have included leading companies like Blue Apron, Diplomat Pharmacy, CultureIQ and Forest2Market across its target sectors.