HIG Capital has significantly strengthened its fundraising capabilities with the strategic appointment of Tim Hsu and Chris Todisco as managing directors within its Capital Formation Group. These seasoned executives, formerly of Oaktree Capital Management and Schroders Capital respectively, will spearhead capital raising efforts for HIG’s expanding global credit platform, a move that underscores the alternatives manager’s ambitious growth trajectory. With approximately $75 billion in assets under management, HIG Capital is demonstrating a clear commitment to deepening its investor relationships and broadening its reach across diverse credit strategies.
The addition of Hsu and Todisco represents a crucial enhancement to HIG’s ability to secure capital from sophisticated institutional investors. Hsu, who will be based in San Francisco, will focus on generating capital for HIG’s credit strategies, with a particular emphasis on cultivating relationships with West Coast institutional investors. Concurrently, Todisco, operating from New York, will assume a similar mandate, targeting East Coast institutions. This geographically segmented approach allows for specialized and localized engagement, a critical factor in the competitive landscape of alternative asset fundraising.
Deepening Expertise in Credit and Capital Markets
The backgrounds of both new managing directors are highly relevant to HIG’s strategic objectives. Tim Hsu brings over 17 years of extensive experience in institutional investment management and private markets. His most recent role at Oaktree Capital Management saw him lead capital formation initiatives specifically targeting institutional investors across the western United States. Prior to his tenure at Oaktree, Hsu honed his skills in institutional business development at BlackRock, a global leader in asset management, where he gained invaluable insights into the needs and preferences of large-scale investors. This comprehensive experience positions him to effectively communicate the value proposition of HIG’s credit offerings to a demanding clientele.
Chris Todisco’s expertise is equally impressive and directly applicable to HIG’s diversified credit focus. At Schroders Capital, Todisco was instrumental in leading fundraising efforts across a broad spectrum of credit strategies, including direct lending, asset-based lending, structured credit, and broadly syndicated loans. His prior experience at First Eagle Investments, where he spent seven years, involved raising capital for its alternative credit platform following a significant firm acquisition. This multifaceted background, encompassing various credit instruments and market cycles, provides him with a deep understanding of investor appetites and the intricacies of structuring and marketing complex credit funds.
A Strategic Expansion Amidst Market Growth
These strategic hires are not isolated events but rather a continuation of HIG Capital’s proactive approach to expanding its formidable credit operations. The firm’s credit affiliate, HIG WhiteHorse, has recently marked significant fundraising milestones. Just last year, HIG WhiteHorse successfully closed its fourth Middle Market Lending Fund, amassing an impressive $5.9 billion in assets. This fund is dedicated to originating senior secured loans for U.S. middle-market companies, primarily targeting borrowers with earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from $30 million to $100 million. This focus on the mid-market segment reflects a strategic decision to capitalize on a segment of the economy often underserved by larger financial institutions.
At the close of its fourth Middle Market Lending Fund, HIG WhiteHorse reported a substantial deployment of capital, having invested approximately $18 billion across more than 285 direct lending transactions within the U.S. This operational scale underscores the fund’s effectiveness and HIG’s deep penetration into the direct lending market. The performance of this latest fund represents a significant leap from its predecessor, which closed with approximately $1.65 billion in commitments in 2021, comfortably exceeding its fundraising target. This demonstrates a compounding growth in investor confidence and capital allocation towards HIG’s direct lending strategies.
HIG Capital’s fundraising success extends beyond its direct lending arm. The firm’s special situations credit affiliate, Bayside Capital, closed its seventh fund in December 2024, raising a considerable $1 billion. This achievement highlights HIG’s ability to generate substantial capital across its various credit-focused entities, catering to different risk appetites and investment mandates. Furthermore, HIG’s broader fundraising endeavors have been robust. In October of the same year, the firm successfully closed a $2 billion U.S. lower middle-market private equity fund, signaling its continued strength and investor demand across its alternative asset classes.
Building a Comprehensive Capital Formation Engine
The appointments of Hsu and Todisco are part of a broader, multi-faceted expansion of HIG’s Capital Formation Group throughout the current year. In May, the firm bolstered its private wealth fundraising operations by bringing on board Brian Dutzar as a managing director, alongside Adam Whitman and Steven Stack as principals. This team is tasked with expanding HIG’s reach within the private wealth segment, covering the firm’s diverse strategies including private equity, credit, and real assets. This strategic move indicates an increased focus on tapping into the growing pool of capital available from high-net-worth individuals and family offices.
Further demonstrating its commitment to strategic growth and specialization, HIG also made significant additions to its Capital Formation Group in March. The firm welcomed Clark Jeffries as global head of insurance and Gary Droscoski as a managing director. These hires are integral to HIG’s initiative to build a dedicated insurance vertical, aiming to channel capital from insurance companies into its private credit, private equity, and real asset strategies. The insurance sector represents a substantial and stable source of long-term capital, and HIG’s proactive approach to building a dedicated team signals its intent to become a preferred partner for these institutional investors.
Collectively, these appointments and strategic initiatives underscore HIG Capital’s deliberate strategy to enhance its fundraising capabilities across all investor segments and asset classes. The firm’s robust $75 billion AUM is spread across a wide array of investment strategies, including private equity, growth equity, direct lending, special situations credit, real estate, infrastructure, and growth-stage healthcare. This diversified portfolio necessitates a sophisticated and expansive capital formation function capable of articulating the unique value proposition of each strategy to a global investor base.
Implications and Future Outlook
The strategic hiring of experienced capital formation professionals like Tim Hsu and Chris Todisco is a clear indicator of HIG Capital’s ambition to further entrench itself as a leading global alternative asset manager. By bringing in individuals with proven track records and established networks within the institutional investment community, HIG is not only enhancing its immediate fundraising capacity but also laying the groundwork for sustained growth.
The focus on expanding the Capital Formation Group signals a recognition of the increasing importance of dedicated investor relations and capital raising expertise. In a competitive market where investors have a plethora of options, the ability to effectively communicate a firm’s strategy, performance, and operational strengths is paramount. The segmentation of responsibilities, with specialized roles for West Coast, East Coast, private wealth, and insurance investors, suggests a sophisticated understanding of investor preferences and the need for tailored engagement.
The continued growth of HIG’s credit platform, evidenced by the substantial fundraising of HIG WhiteHorse and Bayside Capital, is a testament to the firm’s ability to generate attractive risk-adjusted returns in the credit markets. The addition of experienced capital formation professionals will be crucial in channeling this investor appetite into new and existing credit vehicles, further solidifying HIG’s position as a major player in private credit.
The broader implications of these strategic hires extend to HIG’s overall market positioning. By strengthening its fundraising engine, the firm is better equipped to capitalize on market opportunities, pursue strategic acquisitions, and continue its global expansion. The emphasis on building specialized verticals, such as the insurance sector initiative, demonstrates a forward-thinking approach to identifying and accessing new pools of capital. As the alternative asset management industry continues to evolve, firms like HIG Capital that invest in their human capital and strategic infrastructure are likely to be the ones that thrive. The appointments of Hsu and Todisco are a significant step in that direction, signaling a robust future for HIG’s global credit platform and its broader asset management ambitions.
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