Ex-Terra Firma MD establishes structured equity unit at Hg

Peter Miholich, a veteran of structured equity transactions, has made his first investment at HgCapital.

The former managing director at London’s Terra Firma Capital Partners resurfaced in March as head of Transition Capital, HgCapital’s newly formed preferred equity and debt arm. The division completed its first investment on 10 September, providing structured equity for Dublin-headquartered software company BrightPay.

Miholich left the UK private equity house in late 2016 amid a raft of exits under chief executive Andrew Geczy. He had been appointed in September 2015 to establish Terra Firma’s Support Capital business unit, which provided structured finance to European companies.  Miholich had been a managing director at Nomura’s structured capital unit, with responsibility for principal credit business in EMEA.

Miholich has served as a director at Transition Capital since November, according to his LinkedIn page. The unit – which provides incremental capital to private businesses with an enterprise value of £50 million to £100 million – is entirely funded by a £75 million commitment from HgCapital’s listed private equity trust.

Transition Capital transactions will be structured to deliver a largely fixed return, with a set date for redemption, according to HgCapital Trust H1 results on 10 September. The division is expected to fund three to four investments in the range of £15 million to £25 million over the next three years.