Business Details
31 Years
experience
Private Real Estate Investment Firm | HG Capital
HG Capital is a privately held real estate investment firm that has been providing capital to experienced operating partners since our establishment in 1995. We focus our efforts on the Western United States, investing in both commercial and residential real estate assets through a variety of structures including joint venture equity, preferred equity, mezzanine financing, and participating debt investments. Our approach is designed specifically to address small and mid-sized assets that represent the majority of real estate opportunities but receive relatively little attention from traditional institutional investors. We leverage our extensive network of relationships with entrepreneurial operating partners and local market experts to identify unique investment opportunities, particularly off-market assets that can be actively managed and improved to generate attractive, tax-efficient returns. With our deep expertise across multiple real estate sectors and over two decades of proven track record, we implement a dynamic diversification strategy that takes advantage of economic and real estate cycles while maintaining balance across property types, time horizons, and geographic regions.Our team of principals maintains full discretion over all investment decisions, allowing for efficient decision-making and timely execution that our partners can rely on. We are committed to strong alignment of interests with our investors, with our principals having invested over 10% of the capital deployed by the firm throughout its history. Our institutional standards for fund governance and transparency, combined with the long-term stability of our team and focused investment strategy, have been key factors in our success across nearly three decades. We take pride in building lasting relationships with our operating partners, serving as a flexible, reliable, and consistent capital partner in the real estate market. Our value proposition is further enhanced by the direct involvement of at least one principal in each project from inception to completion, ensuring continuity and accountability throughout the investment lifecycle.
Services
Joint Venture Equity
Preferred Equity
Mezzanine Financing
Participating Debt Investments
Real Estate Investment Management
Details
- Year established: 1995
Highlights and features
- We have over 25 years of focused experience in Western U.S. real estate markets
- Our principals maintain full discretion for timely investment decisions
- We offer customized deal structures tailored to specific project requirements
- Our principals have invested over 10% of the capital deployed by the firm
- We maintain long-term relationships with expert local operating partners
Services
Joint Venture Equity
HG Capital provides joint venture equity investments in small and mid-sized real estate assets across the Western U.S. Our approach focuses on partnering with experienced local operators to acquire, reposition, and develop properties that offer attractive risk-adjusted returns. Through this strategy, we have completed over $1.8 billion in transactions since 1995.
Mezzanine Financing
We offer mezzanine financing solutions for real estate investors seeking capital for property acquisition, development, or recapitalization. Our mezzanine financing provides flexible capital structure options that complement senior debt. This strategy enables us to participate in the upside potential while maintaining a senior position in the capital stack.
Real Estate Investment Management
HG Capital manages real estate investment funds on behalf of high net worth individuals, family offices, and institutional investors. Our fund management approach emphasizes alignment with investor interests, with principals investing over 10% of the firm's capital. We maintain institutional standards for governance and transparency while providing efficient decision-making processes.
Preferred Equity
Our preferred equity investments provide structured capital solutions that combine elements of debt and equity financing. This approach offers investors a priority return position while participating in the potential upside of real estate investments. We tailor these structures to meet the specific requirements of each project while maintaining our focus on tax efficiency and risk management.
Market Research
We conduct comprehensive research of real estate and capital markets to identify investment opportunities and market inefficiencies. Our local market expertise and relationships with real estate professionals help us source off-market deals and assess regional trends. This research capability supports our strategic focus on small and mid-sized assets where market inefficiencies often exist.
People
Henry J.H. Bandet
Founder and Partner
Founded HG Capital in 1995 and serves as Partner. Originated over $1.5 billion in real estate investments across the Western U.S. Previously led Hunting Gate group. Holds Stanford University degrees in Economics and Applied Earth Sciences with honors.
Andrew J. Jobst
Partner
Partner at HG Capital since 1997. Participated in underwriting over 80 investments totaling $1.5 billion. Handles investment origination, joint venture agreements, and asset disposition strategy. Holds multiple degrees from Stanford University including Biology, Economics, and Engineering Economic Systems.
William R. Leiva
Chief Financial Officer
Serves as Chief Financial Officer at HG Capital. Brings 30 years of real estate finance experience from roles at Page Mill Properties and Prometheus Real Estate Group. Previously negotiated $3.2 billion in loans with financial institutions and government agencies. Holds Accounting degree from University of Notre Dame.
Questions
What geographic areas does HG Capital focus on for real estate investments?
HG Capital concentrates its real estate investments primarily in the Western United States, covering markets from California to Arizona and other western states.
What types of real estate investments does HG Capital make?
HG Capital invests in both commercial and residential real estate through joint venture equity, preferred equity, mezzanine financing, and participating debt structures across the asset lifecycle.
What is the typical investment size that HG Capital considers?
HG Capital focuses on small and mid-sized real estate investments, with equity commitments typically ranging from $1 million to $8 million per transaction.
How does HG Capital source its real estate investment opportunities?
HG Capital sources investments through long-term relationships with local operating partners and maintains a robust deal pipeline developed over 25 years of market presence in the Western U.S.
Does HG Capital invest in real estate development projects?
Yes, HG Capital participates in real estate development projects as part of its investment strategy, along with acquisitions and repositioning of existing assets.
How does HG Capital differentiate itself from traditional real estate funds?
HG Capital differentiates itself by focusing on smaller assets ignored by institutional funds, offering flexible deal structures, and maintaining direct principal involvement throughout each investment's lifecycle.
