Investment Criteria

Private Equity & Venture Capital

Investment Criteria

HFI primarily seeks to partner with management teams and make investments in growth-focused businesses with an established track record of success. Utilizing a generalist investment strategy, we have a particular interest in situations with the following characteristics:

  • Proven business model

  • Sustainable and defendable franchise

  • Strong returns on invested capital

  • Solid free cash flow generation with opportunities for reinvestment

  • Ability to add value operationally or via acquisition / organic growth

  • Catalyst(s) for value creation

  • Alignment of incentives with the operating team

Preferred Investment Types

Buy-and-Build Opportunities: Provide capital to companies in industries that are fragmented or structurally changing to support a stronger competitive position through strategic acquisitions.

Mid-to-Late-Stage Growth Capital: Inject capital into businesses with a solid market opportunity and proven product(s) or service(s) to substantially expand their market presence.

Special Situations: As a family office, we can provide capital under a variety of creative structures based on the particular situation (e.g., structured minority investments, mezzanine investments, distressed debt, private investments in public companies, etc.).

Formation Capital: Provide growth capital to early-stage companies in sectors where we have unique and value-added expertise.

Representative Sector Focus Area

  • Business Services

  • Financial Services

  • Educational Technology

  • Building Industry

  • Data Intelligence

  • Transportation / Mobility / Telematics

  • Specialty Manufacturing

  • Value-Added Distribution

Real Estate

Investment Criteria

HFI can participate as an investor and / or an operator, depending on the deal and geography. HFI has experience in an array of value-add and development investments and has in-house operational capabilities. Attributes that we look for include:

  • Markets with strong, long term fundamental demand drivers and limited supply

  • Premier locations that will drive and hold long-term value

  • Under-appreciated markets with significant potential for growth & institutionalization

  • Strong cash yields during investment hold period

Preferred Investment Types

  • Asset Classes: HFI invests primarily in residential (multifamily, BFR, student housing) and industrial. Selectively, HFI will investments in mixed-use retail / office or other sectors. HFI is particularly interested in North Texas residential and South Texas industrial.

  • Geographies: Main locations of interest are Texas & other business-friendly states

  • Strategies: HFI can be flexible and looks at an array of different strategies, including land acquisition, land entitlement, value-add and development

  • HFI Role: Deal-dependent as HFI can take GP, Co-GP or LP positions depending on the opportunity