HIG Capital has completed a succession process with three career insiders taking the helm of the $74 billion alternative asset manager: Brian Schwartz moves from co-president to chief executive officer and Doug Berman becomes co-president alongside incumbent Rick Rosen.
Co-founders Sami Mnaymneh and Tony Tamer, who built HIG Capital together starting in 1993, are both moving to the title of Executive Chairman and retaining seats on the investment committee for all fund strategies. Mnaymneh has served as managing director of the company since its inception.
Schwartz’s tenure at the firm is unusually long, even by private equity standards. He arrived in 1994 – a year after the founders – and rose through positions spanning investment oversight, fund management and firm-wide operations before becoming co-president. For the past six years, he has held seats on the investment committee for all fund strategies pursued by HIG Capital: equities, credit, real estate and infrastructure.
HIG Capital’s multi-strategy platform in times of change
The company Schwartz now runs is significantly larger and more complex than the one he joined. HIG Capital pursues strategies in middle market buyout equity, direct lending through WhiteHorse Finance (its publicly traded business development company), real estate, infrastructure and special situation lending. Its capital under management totals $74 billion, its portfolio includes more than 100 active companies with combined revenues of over $53 billion, and the firm has completed more than 3,500 transactions since its inception.
Mnaymneh pointed to this magnitude as part of the rationale for the change. “The company has reached a scale and depth of leadership where this transition is both natural and strategically important,” he said. “Brian has been instrumental in our success and a key driver of the company’s growth. I look forward to working with him as the company builds on its strong foundation.”
Berman’s promotion completes a major leadership overhaul. He spent nearly 30 years at HIG Capital, where he most recently led its U.S. private equity franchise, and serves on its board of directors. He will now work with Rosen on company-wide investment and operating priorities.
The succession structure keeps founders informed about capital decisions
Only a few details of the new structure suggest a clear break with the Wilhelminian era. Mnaymneh and Tamer retain their membership on the investment committee – at most private equity firms, this is where the actual authority over deployment decisions lies. Day-to-day management will pass to Schwartz, but the founders will retain direct influence over which deals are completed.
“I am deeply grateful to Sami and Tony for building a company characterized by disciplined investing, operational focus and a strong culture,” said Schwartz. “With our differentiated platform and experienced team, we are well positioned to capitalize on opportunities and continue to deliver strong results for our investors.”
Berman spelled out his own mandate: “My priority is to ensure we remain disciplined in our investments, remain close to our portfolio companies, and continue to perform at a high level across the organization. I look forward to working with Brian and Rick as we continue to capitalize on the opportunities we see in our markets.”
Headquartered in Miami, HIG Capital has offices throughout the United States and partner locations throughout Europe, Latin America, the Middle East and Asia.
