HGGC Takes Risk Management Company RPX Private With Focus on Long Term Growth

In the world of finance, many companies and shareholders focus solely on the short-term, losing site of long-term potential gains. Bucking the trend is one successful Palo Alto based private equity firm that has taken an innovative medical company private. That firm, HGCC, has recently announced that they have taken RPX private in the second such deal in the last twelve months.

According to executives at HGGC, the main motivation to take RPX private is to focus on the long term growth of the company. As a formerly publicly traded company, RPX was accountable to shareholders who may only care about short-term growth. By taking RPX private, the firms management team can give RPX the time and the space to realize its maximum potential.

RPX is a leading provider of patent risk and discovery management solutions. The company works hard to prevent patent litigation risk and costs. With RPX, medical facilities, medical professionals and hospitals are able to insure themselves from liability and limit exposure to litigation costs. Since the company’s inception, RPX has amassed over 320 clients, had over 1,500 litigations dismissed and saved their clients over $3.8 billion dollars.

RPX is one of 60 companies in HGGC’s portfolio. Some of the companies in the portfolio include AutoAlert, MyWebGrocer, IDERA, Aventri, FPX, Selligent, Davies Group, Pearl and iQor. All told, the firm’s portfolio includes $4.2 billion in investments. The capital for these investments were made possible by three funds. Investors of these funds include some of the largest pension and insurance groups in the world. These investors include Pennsylvania Public School Employees’ Retirement System (PSERS), West Yorkshire Pension Fund, CNP Assurances, Brederode SA and The California Public Employees’ Retirement System (CalPERS).

Founded in 2007, HGGC includes key personal Gregory M. Benson, Leslie M. Brown, Jr., Richard F. Lawson, Jr., Neil H. White, and Hall of Fame Quarterback Steven Young. Since its inception, the firm has executed over $60 billion in transactions. As the company enters its next decade of operation, HGGC will continue to find new investment opportunities across different sectors.


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