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19 Mar 2021

HgCapital Trust

Company Notes

Strong returns assisted by investment activity in 2020

HgCapital Trust is a private equity fund with assets of £1.3bn that invests in unquoted software and business service companies across Europe. On 15 March it announced its annual results for the year ended 31 December 2020, which showed its NAV up 24% in the year to 310.3p per share, while its share price return was 20.9%. Returns were driven by a £225m revaluation of its unquoted portfolio and an uplift of £105m on realisations. The top 20 investments (83% of the portfolio) saw revenue and EBITDA growth of 22% and 31% respectively.



Investments totalled £403m last year in 15 new and further investments including: Visma (£48m), Sovos (£44m), Septeo (£39m), Argus Media (£35m), P&I (£35m), Intelerad (£34m) and CaseWare (£29m). Realisations totalled £364m and were delivered by six transactions: Visma (£193m), Sovos (£139m), The Citation Group (£26m), STP (£15m), Eucon (£12m) and Evaluate (£11m). The average multiple of cost achieved on exits was 3.5x, with the average uplift to the last carrying value being 25%. New commitments of £750m were made to Hg Saturn 2 (£293m), Hg Genesis 9 (£322m) and Hg Mercury 3 (£103m). Outstanding commitments stood at £543m at the end of February, while cash, adjusted for all transactions and the outstanding 5p dividend, was £102m, equivalent to 8% of the net assets. The fund’s £200m multi-currency facility remains undrawn.