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