H.I.G. Capital, a global alternative investment firm, has raised $1.3 billion for its new H.I.G. Infrastructure Partners fund, which focuses on middle market infrastructure businesses. The fund is dedicated to investing in sustainable, low-carbon enterprises that tackle significant global infrastructure issues, including traffic congestion and clean energy solutions.

Although the fund has just closed, H.I.G. has already started deploying capital. The firm intends to invest in 12 to 15 companies across sectors such as clean energy, transportation alternatives, and renewable energy-based telecommunications. This strategy aims to address concerns about the increasing capital in private infrastructure by concentrating on the midmarket sector.

Ed Pallesen, a managing director at H.I.G., emphasized the importance of this focus, noting that while there are many large capital pools in infrastructure, fewer fund managers target the middle market. This niche approach is central to H.I.G.'s investment strategy.

One of the fund's notable acquisitions is Northern Biogas, a company that produces renewable natural gas through anaerobic digestion of waste. Pallesen pointed out the advantage of utilizing existing infrastructure, such as pipelines, for renewable natural gas, which aligns with traditional natural gas systems.

In the telecommunications sector, H.I.G. has invested in Trail Ridge Power (TRP), a company dedicated to decarbonization, and acquired Tower Energy Professionals (TEP), which provides engineering services for telecom and renewable energy projects. These investments reflect H.I.G.'s commitment to supporting sustainable technologies.

H.I.G. Capital is recognized for fostering growth in high-potential companies through strategic guidance and capital investment. For example, its acquisition of North American Central School Bus includes plans to transition from combustion engine vehicles to electric buses. Pallesen noted that government support is currently essential for facilitating this electrification process.

The firm is also addressing global emissions concerns in transportation infrastructure through its investment in EYSA, a Madrid-based company focused on urban efficiency and sustainable mobility solutions. Andrew Liau, another managing director, highlighted the significant growth in this area as cities grapple with rising populations, congestion, and the need to reduce emissions.

Overall, H.I.G. Capital's new infrastructure fund positions the firm as a leader in sustainable infrastructure investment, targeting mid-market opportunities in rapidly evolving sectors. The fund's focus on clean energy and urban efficiency reflects a broader commitment to addressing pressing global challenges through innovative solutions.