H.I.G. Capital is working the phones with current investors to line up commitments for its next infrastructure vehicle, H.I.G. Infrastructure Partners II, with a goal around $2.6 billion, according to people who asked not to be named discussing confidential plans. A representative for the Miami-based firm declined to comment. If it lands that mark, the fund would come in at about twice the size of its predecessor, which wrapped up at roughly $1.3 billion in 2024.
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The plan is to buy controlling equity stakes in infrastructure businesses serving the middle market, concentrating mainly on North America and Europe. The mandate covers a wide mix of essential services, including transportation, energy, digital infrastructure, environmental services, and the water and waste segments. The firm is aiming for a gross IRR of 15% to 20%, which the people said is broadly consistent with typical private equity funds. The first fund has executed 11 investments so far, and last year H.I.G. exited EYSA Group, a Madrid-based sustainable mobility solutions provider, selling it to Tikehau Investment Management.
Money has been flowing into infrastructure because these assets are viewed as more resilient when prices rise. Add in the possibility of an AI buildout that could crank up demand for electricity generation, and deal pipelines may stay busy. For everyday investors, the takeaway is simple: essential services with pricing power can behave differently when inflation sticks around, and big managers are positioning for that backdrop.
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