Highlander Partners Company Profile

Background

Highlander Partners is a Dallas-based private investment firm established in 2004, managing over $3.0 billion in assets. The firm distinguishes itself by utilizing proprietary capital for investments, allowing for flexibility and a long-term investment horizon without the constraints of external limited partners. Highlander operates globally, with offices in Warsaw, Poland, and Bucharest, Romania, and has completed over 90 majority control transactions across eight countries in North America and Europe, with transaction values exceeding $5.0 billion.

Key Strategic Focus

Highlander Partners employs a "buy and build" investment approach, focusing on creating value by helping companies grow organically and through acquisitions. The firm targets middle-market businesses in industries where its principals have significant operating and investing experience, including:

Consumer Products: Investments in branded consumer goods companies, such as the acquisition of Ergobaby, a global leader in premium juvenile products.

Food and Beverage: Formation of Bettera Brands to pursue confection and snack acquisitions, including the acquisition of Gimbal Brothers and Hillside Candy.

Manufacturing: Investments in companies like Profile Custom Extrusions, a manufacturer of custom aluminum extrusions.

Healthcare: Acquisition of Eagle Hospital Physicians, a leading hospitalist physician practice management company.

Financials and Funding

Highlander Partners manages its own proprietary capital, providing flexibility in capital structures and investment decisions. This approach allows the firm to be a patient, long-term partner with a focus on sustainable value creation. Specific financial details of individual investments are typically not disclosed.

Pipeline Development

Highlander Partners' investment strategy includes both organic growth and strategic acquisitions. Notable developments include:

Ergobaby Acquisition: In December 2024, Highlander acquired Ergobaby, a global leader in premium juvenile products, aiming to leverage product innovation and market expansion.

Bettera Brands Formation: Established in April 2017 to pursue confection and snack acquisitions, including Gimbal Brothers and Hillside Candy, focusing on customer cross-pollination and new product development.

Technological Platform and Innovation

Highlander Partners emphasizes innovation within its portfolio companies. For instance:

DZYNE Technologies Acquisition: In January 2023, Highlander acquired DZYNE Technologies, a developer of advanced unmanned aircraft systems, highlighting a focus on cutting-edge technology in defense and aerospace sectors.

Leadership Team

Jeff L. Hull: President and CEO of Highlander Partners, overseeing the firm's strategic direction and investment activities.

Mark Blanchat: Partner at Highlander Partners, involved in overseeing portfolio companies and investment strategies.

Leadership Changes

Recent leadership appointments include:

Brent McCarty: Appointed Chairman and CEO of Eagle Hospital Physicians following its acquisition by Highlander Partners in September 2010.

Competitor Profile

Market Insights and Dynamics

The private equity industry is characterized by significant competition, with firms vying for attractive investment opportunities across various sectors. Highlander Partners differentiates itself through its proprietary capital model and flexible investment approach.

Competitor Analysis

Key competitors include:

LLR Partners: A private equity firm with approximately 92 employees and $44.3 million in revenue, focusing on middle-market growth companies.

Charterhouse Group: A private equity firm with 25 employees and $10.9 million in revenue, investing in various industries.

Riverside Partners: A firm with 34 employees and $16.8 million in revenue, specializing in healthcare and technology investments.

Strategic Collaborations and Partnerships

Highlander Partners has engaged in significant collaborations to enhance its market position:

Flexpoint Ford: Partnered in the acquisition of Eagle Hospital Physicians, combining resources to expand in the healthcare sector.

Wind Point Partners: Merged portfolio companies Benestar Brands and Palmex to create a leading snack food platform.

Operational Insights

Highlander Partners' operational strategy focuses on leveraging its proprietary capital to provide flexibility and long-term support to portfolio companies. This approach allows for patient capital deployment and strategic growth initiatives without the constraints of external limited partners.

Strategic Opportunities and Future Directions

Highlander Partners continues to seek opportunities in sectors where it has deep expertise, including consumer products, food and beverage, manufacturing, and healthcare. The firm aims to capitalize on market trends through strategic acquisitions and organic growth within its portfolio companies.