Trilantic Capital Partners Acquires Minority Stake in Highgate Hotels

NEW YORK—Highgate Hotels LP and private equity firm Trilantic Capital Partners have formed a partnership through which Trilantic has acquired a minority interest in Highgate.

The transaction provides Highgate with access to significant capital and positions the company for accelerated growth in the hospitality management industry. Highgate’s ownership and management team will work closely with Trilantic to continue the expansion of the company’s business both in the United States and internationally.

Mahmood and Mehdi Khimji, who founded Highgate in 1989, will continue to lead the company and remain the majority shareholders.

In addition to an investment from Trilantic, Ares Capital Corp. has provided the newly formed partnership with debt capital to pursue strategic growth initiatives.

“We have entered the next stage of our expansion strategy and are confident that our partnership with Trilantic will further strengthen Highgate’s industry-leading position through organic growth, acquisitions and continuous innovation in hospitality management,” stated Mahmood Khimji. “We see tremendous opportunity to expand Highgate beyond our core hotel management capabilities and are in the process of aggressively targeting opportunities to enter both adjacent and complementary business lines, all with the objective of continuing to present cutting-edge capabilities to our clients.”

“We are excited to work with Trilantic and believe the firm’s support and reputation for building world-class operating businesses will dramatically enhance Highgate’s ability to achieve our shared goals for the company,” stated Mehdi Khimji.

Jon Mattson, partner at Trilantic, added, “We look forward to helping Highgate execute on key growth initiatives and capitalize on the increasing demand for its services.”

Moelis & Co. acted as exclusive financial advisor to Highgate.  Sullivan and Cromwell LLP and Gibson, Dunn & Crutcher LLP provided legal advice to Highgate and Trilantic, respectively.

Highgate manages approximately 60 hotel properties and has a significant presence as an operator of full-service hotels in several major markets, including Honolulu, Miami, San Francisco, Boston and New York City.

Trilantic Capital Partners has a primary investment focus in North America in the business services, consumer, energy and financial services sectors. As of June 30, Trilantic managed five institutional private equity funds with aggregate capital commitments of $6.2 billion, according to the company.