HIRO Capital brings Sir Nick Clegg on board and launches a new growth fund — what allocators should notice

A clear signal: Sir Nick Clegg joins HIRO Capital and HIRO III debuts

HIRO Capital announced that Sir Nick Clegg, the former UK deputy prime minister who later led global policy at Meta, is joining as a general partner as the firm prepares to launch a new fund called HIRO III. The appointment and fund reveal matter beyond a headline: they change how allocators will judge the firm’s access to deals, its regulatory clout and the kinds of startups likely to land in the fund’s portfolio.

For limited partners, this is the kind of move that can cut both ways. On one hand, Clegg’s government experience and tech-policy network give HIRO direct lines into conversations that shape regulation and market structure across Europe and beyond. That can translate into earlier insight into winners and losers for companies operating in regulated sectors such as data infrastructure, ad tech, fintech and AI tools.

On the other hand, appointing a high-profile political figure who recently worked inside a major tech company draws fresh scrutiny. LPs who care about governance and potential conflicts will want clear rules on information barriers, side deals and how the firm handles situations where Clegg’s prior roles overlap with portfolio company interests. For the European VC market, the move is a reminder that funds are increasingly selling not just capital, but connections, policy access and brand — and allocators are paying attention.

What HIRO III aims to be: stage, sectors and LP positioning

HIRO Capital has framed HIRO III as a continuation of the firm’s focus on software-led businesses, digital platforms and companies building the backbone of the internet economy. The announcement positions the fund to back growth-stage opportunities where product-market fit exists and the path to scale is driven by technology and network effects.

The firm did not publish a public, hard target for fund size in its announcement. That leaves LPs to judge whether HIRO III will be a moderate-sized growth vehicle aimed at doubling down on known winners, or a larger pool intended to compete with U.S. growth funds for bigger rounds. Either way, the messaging is clear: HIRO wants to be at the table for later, value-accretive rounds rather than seed bets.

Geographically, the emphasis is on Europe with the flexibility to follow winners into North American rounds when necessary — a common approach among European growth funds that want to protect follow-on rights. The sectors called out are broadly tech-centric: enterprise software, digital infrastructure and platform businesses with recurring revenue and high margins. That mix suits allocators looking for exposure to durable revenue models without the early-stage binary risk.

On the LP side, HIRO’s pitch will land best with institutional investors, sovereign and pension capital seeking scaled exposure to European tech, along with family offices that value co-invest rights and direct access. What will matter in the coming weeks are the fund’s economics and any special terms: carry split, management fee, preferred return hurdles and GP commitment levels. Those items determine whether the headline of a star hire translates into meaningful alignment for investors.

Network power: what Clegg and the advisory roster bring — and what to watch for

Sir Nick Clegg brings a rare mix of political gravitas and inside-industry knowledge. As a former senior UK politician and a recent executive at a major tech company, he offers HIRO both public policy credibility and a working-level understanding of how global platforms operate. That can open doors to regulatory insights, major corporate partnerships and introductions that speed up diligence and cooperation.

The announcement also cited heavyweight advisers joining the firm’s orbit, including noted AI figures. That combination is pragmatic: political reach gets you into conversations with regulators and incumbents; deep AI credibility helps with technical diligence on startups building machine learning systems or infrastructure. Together, they improve HIRO’s pitch to founders who care about policy navigation and product depth.

That said, these strengths create potential conflicts. Clegg’s ties to his former employer and public roles will prompt LPs to seek disclosure and clear firewall policies. Regulators, too, have been watching the revolving door between tech firms and policy makers; high-profile hires can accelerate scrutiny. For founders, the extra visibility is useful — but some startups may prefer to avoid funds whose partners maintain close ties to a handful of global platforms.

How this fits into the current European VC picture

The HIRO III reveal arrives as Europe’s growth ecosystem is rebuilding momentum after a multi-year slowdown. LP interest in growth-stage and late-stage opportunities has returned, driven by a handful of strong exits and the commercial promise of AI and cloud infrastructure. At the same time, higher cost of capital and ongoing macro uncertainty mean valuations are under pressure compared with the froth of earlier years.

That mix creates opportunity and competition. Funds that can credibly offer differentiated access — whether through networks, sector expertise or genuine operational support — will win the best rounds. US growth funds remain formidable rivals when big rounds are on the table, so European players must lean into local knowledge, regulatory mastery and selective follow-on capital to compete effectively.

What allocators and founders should watch next

LPs and founders should track a short list: the fund’s final close and disclosed size, the economic terms and GP commitment, the timeline for the first tranche of investments, and the firm’s formal conflict-of-interest policies. Early portfolio picks will reveal whether HIRO III is doubling down on HIRO’s known sectors or stretching into new, riskier territory.

The main risks are familiar: competition driving up entry prices, potential conflicts tied to high-profile hires, and the challenge of converting network access into sustainable, repeatable returns. For now, HIRO’s move is a credibility play that will please allocators who value reach and policy savvy; delivering consistent, above-market returns will be the harder test.

Photo: cottonbro studio / Pexels

Sources

• prnewswire.com