REG - HgCapital Trust PLC - Annual Financial Report
09/03/2026 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260309:nRSI7589Va&default-theme=true
RNS Number : 7589V HgCapital Trust PLC 09 March 2026
LEI: 213800J7QUJJBEFSIN38
HgCapital Trust plc
ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025
POSITIVE NAV PERFORMANCE DRIVEN BY STRONG TRADING IN THE UNDERLYING PORTFOLIO
IN CHALLENGING CONDITIONS
London, 9 March 2026: HgCapital Trust plc ('HgT'), today announces its annual
results for the year ended 31 December 2025.
HgT provides investors with a listed vehicle to invest in one of the largest
and fastest growing portfolios of unquoted technology companies in Europe,
managed by Hg.
The objective of HgT is to provide shareholders with consistent long‑term
returns in excess of the FTSE All‑Share Index by investing predominantly in
unquoted businesses where value can be created through strategic and
operational change.
This objective has been demonstrated with a 10-year share price total return
of +18.9% p.a., outperforming the FTSE All-Share Index by +10.5% p.a. over
this period.
Key highlights for 2025 include:
§ NAV per share total return was 4.0% over the year, and as a result, at 31
December 2025 stood at £5.62 with net assets of £2.6 billion
§ The share price total return showed a decrease of 4.9% over 2025 at £5.07;
market capitalisation at the year-end was £2.3 billion
§ Strong underlying performance from the portfolio with LTM revenue and
EBITDA growth of 17% and 19% and margins of 33% for the overall portfolio; in
line with prior year figures
§ Investments of £357 million made over the year and realisation proceeds of
£215 million generated
§ Realisations in 2025 included GTreasury at an uplift of 97% to book value,
overall, exits over the year added 4.6 pence to the NAV
§ In November, HgT announced the exit of Intelerad (due to complete in March
2026). The transaction price reflected an uplift of 62% to its last reported
carrying value
§ At year-end, HgT had available liquid resources of £368 million (including
a £375 million credit facility, of which £36 million was drawn as at 31
December 2025)
§ Realisations over 2025 saw an average uplift to book value of 25%
§ Substantive completion of the current cycle of commitments to Hg funds.
Outstanding commitments to Hg funds totalling £2.2 billion* (85% of NAV) at
year-end which are expected to be called over the next four to five years
§ Ongoing share buyback programme initiated on 6 February 2026
* Includes the top-up commitments in Hg Genesis 11 and Hg Mercury 5 which had
not previously been reflected in the £1.8 billion outstanding commitments
reported in the Trading Update on 6th February 2026.
Based on HgT's share price at 31 December 2025 and allowing for all historic
dividends being reinvested, an investment of £1,000 made 20 years ago would
now be worth £13,881, a total
return of 1,288%. An equivalent investment in the FTSE All-Share Index would
be worth £3,839.
Jim Strang, Chairman of HgT, commented:
"Against the challenging macro-environment backdrop and volatile environment
for technology investments, companies within the HgT portfolio continued to
report strong and consistent underlying trading performance, with LTM sales
growing at 17% and EBITDA growing at 19% respectively, with EBITDA margins of
33%. These figures are consistent with those reported last year and compare
favourably with similar businesses. In this uncertain world investors should
be comforted by the experience, focus and discipline of Hg as a technology
investor targeting investments with very specific characteristics which serve
to tilt the risks and returns of investing in their favour. Notably, the
mission-critical nature of the technology and services in which Hg invests,
where embedded workflows tied to systems of record, deep domain knowledge and
recurring revenue models, continue to support resilient demand even during
periods of technological and market transition.
Recent exit events, where strategic buyers have acquired assets at sizable
premiums to their carrying values, serve to demonstrate the quality of the
assets HgT holds. However, over the course of the year, the positive effect of
continued strong trading performance and the aforementioned uplifts on exits
on HgT's NAV per share was significantly affected by the reduction in the
valuations of comparable listed companies used to derive the carrying value of
the HgT portfolio. Despite these significant headwinds, the HgT NAV per share
increased by 4.0% over the year, while the share price decreased by 4.9% over
the same period."
David Toms, Head of Research at Hg, commented:
"The core attraction of this sector remains the ability to deliver sustainable
earnings growth through a variety of market environments and against volatile
macro-economic backdrops. In addition, AI materially expands the opportunity
set and we see encouraging early momentum in our businesses. Beyond this, for
the portfolio, M&A remains a key driver of outperformance."
SUMMARY performance
28 February YTD 2026 31 December 31 December 2025
2026
Total
2025
2024
Total
return
return
NAV per share 560.9p -0.1% 561.5p 545.5p +4.0%
Share price 398.0p -21.5% 507.0p 539.0p -4.9%
FTSE All-Share Index +9.7% +24.0%
YTD 2026 2025
Movement
Movement
Net Asset Value £2.6bn -£12.2m £2.6bn £2.5bn +£73m
Source: Hg, Factset. All references to total return allow for all historic
dividends being reinvested
Note: Hg undertakes full revaluations of the portfolio on a quarterly basis,
the next process being 31 March 2026, therefore the movement in unrealised
value of the portfolio to the end of February 2026 is predominantly
attributable to FX.
Performance overview
Net assets of £2.6 billion, with continued long-term outperformance of the
FTSE All-Share over five, ten and twenty-year periods:
- NAV per share of £5.62p, a total annual return of +4.0% to 31
December 2025.
- Share price total return of -4.9% over the year.
- Proposed final dividend of 3.0p per share (full year dividend of
5.0p per share).
Strong double-digit growth from the portfolio:
- Revenue and EBITDA growth of 17% and 19% respectively across the
investments over the last twelve months, EBITDA margins of 33%.
- Valuation multiple (EV/EBITDA) of 25.2x and net debt to EBITDA ratio
of 7.4x for the overall portfolio.
Continued portfolio activity to drive future value:
- £215 million of gross realisations.
- Full and partial exits during the year were achieved at an average of
25% above their last reported carrying value.
- Continued investment with £357 million invested on behalf of HgT
into companies that Hg (the Manager) has known for many years and have
demonstrated a track record of strong performance across market cycles.
POST PERIOD TO 28 FEBRUARY 2026
Performance
§ Pro forma NAV per share of 560.9p.*
§ Pro forma Net assets of £2.6 billion.
§ Share price of 398.0p, performance of -21.5% since 31 December 2025.
*NAV per share is calculated based on shares in issue less shares repurchased
and held in treasury as part of the recent share buyback programme.
Jim Strang, Chairman of HgT, commented:
"Public market volatility increased sharply through the first quarter of 2026,
especially in the software sector, sparked by investor concerns about the
potential impact of AI on the software industry, coupled with a rotation of
capital out of software and into hardware companies. The recent material
sell-off in listed software shares and associated volatility has also had a
pronounced negative impact on HgT's share price, which is down 21.1% period to
date at 6 March 2026.
The recent widespread sell-off seen in the software sector has seen little
distinction made across the many different players in the space and their
respective strengths and weaknesses. While conditions remain challenging,
recent transaction activity at HgT, validates the quality of the assets HgT
owns and the manner in which they are valued, both by HgT and the buyer
universe and should be of considerable comfort. Given HgT's deep knowledge and
relevant investment experience combined with its focus to invest to develop
the next generation of market leading technology companies, while uncertainty
is likely to prevail for the foreseeable future, longer term prospects remain
attractive."
Realisations and investments
§ Estimated £93 million realised post December 2025, primarily from the full
exit of Intelerad and the partial exit of Septeo. These transactions are
expected to complete in March 2026.
§ £139 million invested by HgT into Onestream and Septeo including £46
million in fee-free co-investment. Post-completion, co-investments will
represent an estimated 12% of NAV, increasing from 10% at 31 December 2025.
Pro-forma balance sheet
§ Available liquid resources (including the £375 million credit facility, of
which £53 million was drawn at the end of February) post-completion of all
announced transactions and the full year dividend payable in May 2026, are
£374 million (15% of 28 February pro-forma NAV).
§ Outstanding commitments of £2.1 billion (83% of 28 February pro-forma NAV)
which are expected to be called over the next 4 to 5 years.
Outlook
Commentary from Hg (the Manager):
The combination of the long-term nature of listed private equity investment,
and the structural tailwinds for the types of growth businesses that Hg
invests in, is expected to continue to drive long-term performance
§ The HgT portfolio's strong trading performance is underpinned by the
mission-critical nature of products and services provided by portfolio
companies
§ Despite the recent volatility in public markets, fundamentals for
enterprise software companies remain positive, suggesting that recent market
moves are sentiment driven
§ AI agents are anticipated to expand the addressable market for many SaaS
incumbents. Hg Catalyst, Hg's AI incubator, is working directly with the
portfolio companies to accelerate their AI product development to address this
opportunity
§ The recent exits of GTreasury and Intelerad to strategic buyers, and the
syndications of OneStream and Septeo demonstrate the continued attractiveness
of the Hg portfolio to both strategic and financial buyers
§ We remain excited by the long-term opportunity, as businesses seek to
automate more workflows to improve productivity and manage rising labour
costs, underpinned by demographic and technology shifts
Past performance is not a reliable indicator of future results. The value of
shares and the income from them can go down as well as up as a result of
market and currency fluctuations and investors may not get back the amount
they originally invested.
- Ends -
HgT's 2025 Annual Report, results presentation and an animated presentation
from Hg to accompany the results are available to view at:
http://www.hgcapitaltrust.com/ (http://www.hgcapitaltrust.com/) .
For further details:
HgCapital Trust
George Crowe
george.crowe@hgcapital.com
+44 7774 617 150
Laura Dixon
laura.dixon@hgcapital.com
+44 7824 59 2894
Hg
Tom Eckersley
tom.eckersley@hgcapital.com
Sam Ferris
sam.ferris@hgcapital.com
Cadarn
Lucy Clark
lucy@cadarncapital.com
+44 (0)7984 184 461
David Harris
david@cadarncapital.com
+44 (0)7368 883 211
About HgCapital Trust plc
HgCapital Trust plc is an investment company whose shares are listed on the
London Stock Exchange (HGT.L). HGT gives investors exposure, through a liquid
vehicle, to a portfolio of high-growth unquoted companies, managed by Hg, an
experienced and well-resourced private equity firm with a long-term track
record of delivering superior risk-adjusted returns for its investors.
For further details, see www.hgcapitaltrust.com
(http://www.hgcapitaltrust.com) and www.hgcapital.com
(http://www.hgcapital.com)
HgCapital Trust plc
Annual Report and Accounts and Notice of Annual General Meeting
HgCapital Trust plc (the "Company" or "HgT") announces its annual results for
the year ended 31 December 2025 and the publication of its annual report and
accounts for the same period, which includes the notice of Annual General
Meeting.
The objective of HgCapital Trust ('HgT') is to provide shareholders with
consistent long-term returns in excess of the FTSE All-Share Index by
investing predominantly in unquoted companies where value can be created
through strategic and operational change.
FINANCIAL AND PERFORMANCE HIGHLIGHTS
2025 performance at a glance
4.0%
NAV per share (561.5p)
31 December 2024: +10.4%
£2.6bn
Net assets
31 December 2024: £2.5bn
-4.9%
Share price (507.0p)
31 December 2024: +25.7%
£2.3bn
Market capitalisation
31 December 2024: £2.5bn
5.0p
Full year dividend
31 December 2024: 5.5p
1.5%
Total ongoing charges
31 December 2024: 1.4%
£357m
Invested on behalf of HgT
31 December 2024: £606m
£215m
Realisations to HgT
31 December 2024: £508m
£368m
Available liquid resources (14% of NAV)
31 December 2024: £336m (13% of NAV)
£2.2bn
Outstanding commitments (85% of NAV)*
31 December 2024: £735m (29% of NAV)
Note: NAV per share and share price return on a total return basis assuming
all historical dividends have been re-invested, which is an Alternative
Performance Measure ('APM'). Please see the definitions of the APM's in the
glossary pages 121 to 122 of the full Annual Report and Accounts for the year
ended 31 December 2025.
*Includes the top-up commitments in Hg Genesis 11 and Hg Mercury 5 which had
not previously been reflected in the £1.8 billion outstanding commitments
reported in the Trading Update on 6th February 2026.
The investment portfolio
A snapshot as at 31 December 2025
+17%
LTM sales growth
31 December 2024: +19%
+19%
LTM EBITDA growth
31 December 2024: +23%
33%
EBITDA margin
31 December 2024: 34%
25.2x
EV to EBITDA multiple
31 December 2024: 26.1x
7.4x
Net debt to EBITDA ratio
31 December 2024: 7.4x
The portfolio composition changes as a result of investment and realisation
activity, which may mean prior period metrics are not directly comparable.
Past performance is not a reliable indicator of future results. The value of
shares and the income from them can go down as well as up as a result of
market and currency fluctuations and investors may not get back the amount
they originally invested. Figures are based on all investments as at the
balance sheet date and basis of calculation can therefore change year on year.
CHAIRMAN'S STATEMENT
Against the challenging macro-environment backdrop, companies within the HgT
portfolio continued to report strong and consistent underlying trading
performance, with LTM sales growing at 17% and EBITDA growing at 19%
respectively, with EBITDA margins of 33%, figures which compare favourably
with peer businesses. This performance reflects the mission-critical nature of
the software and technology-enabled services in which Hg invests, where
embedded workflows, deep domain knowledge and recurring revenue models
continue to support resilient demand even during periods of technological and
market transition. The positive effect of this trading performance and uplifts
on exit on HgT's NAV per share was significantly affected by the reduction in
the valuations of comparable listed companies used to derive the carrying
value of the HgT portfolio. Despite these significant headwinds, the HgT NAV
per share increased by 4.0% over the year, while the share price decreased by
4.9% over the same period.
Jim Strang, Chairman, HgT
Despite the challenging market conditions, 2025 remained an active period for
new investments and realisations. This was accompanied by strong underlying
trading performance across the existing portfolio as individual assets
leveraged their market positions and technology leadership. Overall, the
markets for private equity transactions gradually improved over the year and
notably post Q1, as uncertainty from 'Liberation Day' in the USA abated. At
the year end, the aggregate activity levels in private markets in 2025 were in
fact the second highest ever recorded, only bettered by 2021(1).
(1) source: Global Private Equity Report 2026, Bain & Company
Key highlights for 2025 included:
• NAV per share total return was 4.0% over the year, and as a result, at
31 December 2025 stood at £5.62 with net assets of £2.6 billion
• The share price total return showed a decrease of 4.9% over 2025 at
£5.07; market capitalisation at the year-end was £2.3 billion
• Strong underlying performance from the portfolio with LTM revenue and
EBITDA growth of 17% and 19% and margins of 33% for the overall portfolio; in
line with prior year figures
• Investments of £357 million made over the year and realisation
proceeds of £215 million generated
• Realisations in 2025 included GTreasury at an uplift of 97% to book
value, overall, exits over the year added 4.6 pence to the NAV
• In November, HgT announced the exit of Intelerad (due to complete in
March 2026). The transaction price reflected an uplift of 62% to its last
reported carrying value
• At year-end, HgT had available liquid resources of £368 million
(including a £375 million credit facility, of which £36 million was drawn
as at 31 December 2025)
• Realisations over 2025 saw an average uplift to book value of 25%
• Outstanding commitments to Hg funds totalling £2.2 billion (85% of
NAV) which are expected to be called over the next four to five years
The portfolio delivered strong growth in sales and profitability with LTM
sales growth of 17% and EBITDA growth of 19% respectively. The EBITDA margin
across the portfolio averaged 33%. Hg continues to refine and enhance not only
its investment capability but also its in-house value creation skills to
support these portfolio companies in reaching their ambitious growth targets
and achieving their full potential. Within the aggregate investment and other
professional executives team which now number more than 250, Hg has more than
60 full time members in its value creation group working collaboratively with
portfolio company management teams.
It goes without saying that AI remains an area of absolute focus for Hg and
the portfolio with very significant investments made in resources to support
new investment selection and value creation across the portfolio. The
impressive efforts Hg has made on this front not only reflects its own efforts
but also from the multiple partnerships entered into with the likes of
Anthropic (Claude), Replit, Cognition Labs (Devin and now Windsurf),
Forethought and Intercom, this network continues to grow.
Driving AI transformation: see below or page 13 of the full Annual Report and
Accounts
Building on the efforts underway since 2019, Hg has added Hg Catalyst, a
dedicated AI incubator designed to accelerate AI product innovation across
Hg's portfolio. Operating from newly created European and North American hubs
in London and New York, Catalyst brings a scaled capacity of over 80 AI
engineers, product managers, and designers who work directly within portfolio
companies to build enterprise-ready AI products that demonstrate real customer
value.
Hg's focus on AI and build-out of expertise has been recognised and rewarded
in the recent fundraising cycle with significant new capital committed to Hg
by a large pool of global investors, with Hg's share of all European buyout
capital raising approaching 30% of the total for 2025.
Performance
The NAV of HgT saw an increase over the full year, delivering a 4% uplift over
2025 on a total return basis. The positive contribution from the underlying
portfolio included strong trading (+19%) and exits which was offset by a
contraction in multiples from companies in the HgT valuation basket and modest
increases in net debt used to accelerate portfolio growth.
While trading remains the key driver of performance over the long-term,
movements in comparable valuation multiples can impact performance over
shorter-term periods, and this was the case during 2025. Elevated public
market volatility saw multiples used to value HgT's portfolio companies
contract, reducing portfolio valuations by 8% over the reporting period. In
addition, increases in net leverage, deployed to support future growth,
further reduced valuations by 6%. Further investments to finance bolt-on
M&A are an area which Hg has highlighted as being particularly attractive
in the current environment and where the sector-leading businesses across the
portfolio can improve their relative market positions, product and service
offering.
On a long-term basis, HgT has seen a share price CAGR on a total return basis
of 18.9% p.a. over the past 10 years, outperforming the FTSE All Share index
by 10.5% p.a.
Total net assets of HgT at 31 December 2025 were £2.6 billion. An analysis
of NAV movements and movement within the underlying portfolio is set out on
pages 40 and 41 of the full Annual Report and Accounts.
At the end of December 2025, the HgT portfolio comprised a total of 61
investments, all of which focus on mission-critical B2B vertical software and
technology-enabled service companies. The portfolio has continued to perform
strongly, delivering revenue and EBITDA growth of 17% and 19% respectively
over the last 12 months. This performance reflects the defensive growth and
recurring revenue characteristics of businesses whose products sit at the core
of customer workflows and deep domain expertise, and which benefit from high
switching costs and long-term contractual relationships.
Profitability continues to be strong with an average EBITDA margin of 33%
across the portfolio. These businesses typically exhibit highly predictable
forward cash flows and are appropriately financed (on an individual basis),
including significant debt covenant flexibility around their financial
structures. The average ratio of net debt to EBITDA across the portfolio at
the end of the period was 7.4x (December 2024: 7.4x), while the average
valuation multiple for the portfolio was 25.2x EV-to-EBITDA (December 2024:
26.1x), which implies that debt accounts for less than 30% of the average
portfolio company capital structure. This allows for a significant equity
cushion within the portfolio, reflecting the thoughtful approach to leverage,
and is consistent with similar peer companies in the market. Notably, Hg has a
dedicated debt capital markets team which continually monitors and manages the
capital structures of the underlying portfolio companies to ensure they are as
robust and flexible as possible in terms of tenor, interest cost and maturity.
As regards dividends, HgT aims to achieve long-term growth in the net asset
value per share and in the share price, rather than to deliver a specific
dividend yield, with the dividend primarily determined by the level of income
from the underlying portfolio, which can vary over time. As regards 2025, the
Board of HgT has declared a final dividend of 3.0 pence per share (December
2024: 3.5 pence per share), payable in May; this, in conjunction with the
interim dividend of 2.0 pence reflects the 5.0 pence floor.
Dividend: see page 118 of the full Annual Report and Accounts
Dividend re‑investment plan: page 118 of the full Annual Report and
Accounts
Investments
HgT invested £357 million in 2025 with new and follow-on investments
primarily in IFS, P&I, A-LIGN, Citation, Payworks, Diamant Software and
Scopevisio, including £34 million of co-investment (on which HgT does not
pay management fees or carried interest). Co-investments now represent c. 10%
of NAV, increasing from 9% at the start of 2025, in line with HgT's long-term
goal of 10-15%.
HgT continues to increase its exposure to co-investments, with further
expected over the next twelve months. Increasing the allocation to
co-investments allows HgT to utilise more fully its available liquid
resources, to improve returns and to reduce overall fees.
On 6 January 2026, HgT announced that it would invest £93m in OneStream,
investing alongside other institutional investors via the Hg Saturn 4 fund. Hg
has subsequently completed the over-subscribed syndication of $1.5bn of
OneStream equity alongside the Saturn 4 fund. As part of the syndication, HgT
will invest an additional $9 million (£7 million) in OneStream as a
co-investor, increasing its aggregate investment in OneStream to
£100 million. In a separate transaction, Hg has also signed the partial
sell-down of over €50 million of equity in Septeo Group at the 31 December
2025 valuation to a group of institutional investors. As part of this
transaction, HgT has taken the opportunity to convert c.€45 million
(£39 million) of its existing NAV exposure in Septeo via the Hg Genesis 9
fund into fee-free co-investment, by co-investing in a structure alongside the
new investors coming into the business.
Realisations
Despite the challenging market conditions, HgT delivered eight liquidity
events. These included the sales of Trackunit, smartTrade and GTreasury. In
aggregate, HgT saw £215 million in realisations from the underlying
portfolio, representing 9% of opening net assets. This continues a track
record of strong realisation activity, which has generated liquidity of 23% of
opening net assets on average for the preceding five financial years.
Realisations over 2025 saw an average uplift to book value of 25%, including
the sale of GTreasury at an uplift to carrying value of 97%, this highlights
the attractiveness to strategic buyers, of the mission-critical companies in
which the Manager continues to invest.
Similarly, post-period saw the full realisation of Intelerad, announced in
November 2025, returning £52 million to HgT at an uplift of c. 62% to its
carrying value. In February, Hg agreed the partial sale of Septeo, a leading
provider of mission-critical software for regulated verticals based in France,
returning £41 million to HgT. These transactions are expected to complete in
Q1 2026.
Valuations remain an area of continued focus for the HgT Audit Valuation and
Risk Committee ('AVRC'), with a long-term record of exits above carrying
values. This realisation activity continues to distinguish Hg in a market
environment where generating liquidity remains challenging. Hg's recent record
of delivering more than £12 billion of total realisation proceeds to its
investors (including HgT) over the last two years highlights the fundamental
strengths and attractiveness of the underlying portfolio to both trade and
financial buyers.
For further detail on portfolio transaction activity: see pages 46 to 49 of
the full Annual Report and Accounts
Fundraising
In line with HgT's long-term investment model, a number of new commitments
were made in the period to the next series of funds being raised by Hg. Hg
continues to demonstrate a disciplined approach to fundraising, matching their
desired fund size targets to the deal opportunities they are tracking.
Shareholders will recall from my previous communications that HgT made a
series of initial commitments to Hg's three latest funds in the first half of
the year. In the second half the programme of commitments to the current
vintage of funds was agreed, consistent with Hg's long-term approach to
commitment pacing. In that process HgT increased its exposure to the Hg
Genesis 11 and Hg Mercury 5 funds to €700 million and €300 million
respectively, in line with original plans. Additionally, in February HgT
completed a reduction in its commitment to the Hg Saturn 4 fund from
$1 billion to $900 million. This tactical adjustment modestly reduces the
sizing of individual cash flows associated with investments made by that fund
and allows HgT to be more active in co-investments situations alongside the Hg
Saturn 4 fund where co-invest opportunities are expected to be greatest. HgT
has, for example, participated post-period in the co-investment opportunity in
OneStream which Hg announced in January 2026.
Commitments: see page 44 of the full Annual Report and Accounts
All new fund commitments benefit from a subscription facility, meaning that
HgT can take advantage of the same delayed drawdowns as other institutional
investors in the funds, as is normal market practice. Consequently, Hg Saturn
4 will commence cash drawdowns from 2026 while we anticipate the first capital
calls for Hg Genesis 11 and Hg Mercury 5 in 2027. As with previous vintages,
HgT maintains its specific 'opt-out' right on these new fund commitments (see
Balance sheet section below).
As previously indicated, committing to Hg's future funds is the single
greatest lever HgT has to support the long-term growth in NAV. Participating
in this latest fundraising process will continue to underpin HgT's long‑term
growth, while sizing these commitments appropriately. HgT continues to
participate in the current vintage as Hg's largest single client.
Hg funds: see pages 32 and 33 of the full Annual Report and Accounts
Capital Allocation
As part of the Board of HgT's commitment to shareholders, our primary
objective is to maximise investment returns through a disciplined approach to
the allocation of available liquid resources. This incorporates the ongoing
monitoring by the Board, working with the Manager, forecast cash flows and
estimated returns. As I have stated in past reports, the Board continually
seeks ways to improve the effectiveness of governance. As part of this
process, much attention has been devoted to the topic of capital allocation,
including listening to shareholder feedback. The approach, framework and tools
adopted are set out below.
Investments
At the core of the capital allocation policy is the imperative to drive
compelling investment returns for shareholders. HgT has delivered strong
shareholder returns to investors over a period of more than two decades, a
fact highlighted by the Association of Investment Companies ('AIC').
The Board seeks to maintain this impressive track record by continuing to
access the repeatable returns delivered by the Hg investment platform over the
long term. HgT's commitments to Hg funds ensure that HgT maintains exposure to
Hg's deal flow, which is the single biggest driver of investment opportunities
with the potential to generate long-term returns. As such, the priority of the
Board is to ensure that HgT is well positioned to access these returns, at
acceptable levels of risk. This includes taking up co-investment opportunities
(free of management fees and performance fees), in what remains an attractive
investment environment.
Buybacks
From time to time, market conditions can create divergence between the share
price of HgT and its net asset value. The Board, the Manager and HgT's broker
monitor such divergence closely, following a clearly defined share buyback
framework. The Board has developed a process with a number of 'triggers' set
by absolute and relative levels of share price discount over various time
periods. Where two or more such 'triggers' are activated, the Board formally
considers the appropriateness of buying back shares, giving due regard to the
relative merits and opportunity costs of doing so on long-term NAV growth. In
doing so, the Board remains mindful that periods of share price volatility can
coincide with attractive investment opportunities within the portfolio and
therefore seeks to balance short-term discount management with the long-term
objective of compounding NAV for shareholders.
Dividends
Dividends payable by HgT are in part determined by the levels of income that
are generated by the underlying assets of the portfolio. As deal structures
used by Hg have evolved, the level of income generated has trended lower in
recent years, albeit it can easily vary from one year to the next. In this
context, the Board has in recent years guided shareholders that 5.0 pence per
share is a reasonable basis for a dividend 'floor'.
Business Model - Dividends: see page 16 of the full Annual Report and
Accounts
Shareholder information - Dividends: see page 118 of the full Annual Report
and Accounts
Debt facility
The final element of the capital allocation policy relates to the use of
leverage. HgT maintains a Revolving Credit Facility of £375 million (c.15%
of net assets) to support the implementation of the investment strategy.
Balance sheet
A key role of the Board is to balance considerations of HgT's future
commitments to Hg funds, balance sheet and cash position, while maintaining a
clear focus on risk. This is a continuous cycle of activity which has to adapt
to unpredictable events. HgT has invested in upgrading the systems used to
manage this process, aligning them with similar tools that Hg uses to manage
its own cash-flow forecasting. As a result, the Board benefits from the
ability to assess the various scenarios with a greater degree of granularity
which should enhance the quality of decision making.
As one of the tools used to manage the balance sheet, HgT has a revolving
credit facility to support the investment programme and to improve balance
sheet efficiency.
As a reminder, HgT benefits from an 'opt-out' clause within its underlying
investment agreements with Hg (please refer to business model on page 16 of
the full Annual Report and Accounts for the year ended 31 December 2025 for
further details), which provides a useful risk management tool as the Board
seeks to manage and optimise the HgT balance sheet.
Impact and sustainability
The Board and the Manager, Hg, continue to increase their focus on using
sustainability as a value creation tool. We share a firmly held view that not
only should the financial returns to shareholders be attractive but they must
be delivered in a manner which is consistent with our responsibility to
society. As a technology investor, the Board understands the need to ensure
that those businesses in which we invest reduce their carbon footprint and
contribute to tackling climate change.
The UN Principles for Responsible Investment (UNPRI) assessment of Hg's
approach to responsible investment is 5* (94%) for policies and stewardship
and 5* (97%) for Private Equity, and the Board of HgT meets regularly with the
Hg Responsible Investment team to ensure that Hg's work is well understood and
endorsed by the Board. As we have previously reported, Hg launched The Hg
Foundation in 2020 - a charitable enterprise which provides funding and
operational support to initiatives across Europe, the UK and the US. The Hg
Foundation's goal is to have an impact on the development of those skills and
learning most required for employment within the technology industry, focusing
on individuals who might otherwise experience barriers to access this
education. The Foundation is funded by the Hg management company and its team
members.
Sustainability: see page 36 of Hg's review of the full Annual Report and
Accounts
The Hg Foundation: see page 37 of Hg's review of the full Annual Report and
Accounts
Reporting and Transparency
The Board continues to look at ways to increase the effectiveness of
communications for shareholders. As part of this initiative, HgT has provided
trading updates since 2024 post period ends, giving our shareholders earlier
guidance on the performance of HgT ahead of the full year and interim results,
but after review by the HgT Audit Valuation and Risk Committee ('AVRC') and
approval by the HgT Board.
HgT has also engaged with third-party marketing specialists to increase the
scope and reach of its marketing activities in the UK and overseas, where
regulations permit.
The HgT website and social media presence are frequently reviewed in order to
continue to improve our dissemination of information to all shareholders and
there are additional initiatives in progress to increase further shareholder
engagement.
Hgcapitaltrust.com
Board and governance
In late 2024 we commenced the process to find a new Non‑Executive Director,
and an external search firm was engaged to support the Nomination Committee
and the Board in delivering a successful outcome, noting the skills and
experience which would be most additive to HgT.
We were pleased to announce in July the appointment of Graham Paterson to the
Board. Graham is an experienced investment professional with over 25 years'
experience in private equity and as a chartered accountant, brings a unique
combination of skills and personal strengths that are highly complementary to
HgT now, and as we continue to execute our strategy of investing in a
portfolio of high-growth private companies in the software and services
sector. On appointment to HgT, he joined the AVRC, the Nomination Committee
and the Management Engagement Committee. Subject to his election at the
Company's 2026 Annual General Meeting ('AGM') on 7 May 2026, Graham will take
on the role of HgT's Chairman of the AVRC, at the conclusion of that AGM.
Concurrent with Graham's election at the AGM, Richard Brooman, the current
Chairman of the AVRC, will retire from the Board after serving HgT for 18
years. Richard's contribution to the success of HgT has been immense. Over his
tenure, the market capitalisation has grown from £239 million to
£2.3 billion. This very visible sign of the success he helped steward does
not speak to the countless ways he has worked tirelessly for the benefit of
HgT and to support his colleagues on the Board. His Board colleagues have all
benefited from this wisdom, calmness and thoughtful advice over many years. On
behalf of all the HgT stakeholders I would like to extend my deepest thanks to
Richard for his many years of service to HgT.
Nomination Committee report see page 108 of the governance section of the
full Annual Report and Accounts
Recent volatility in public market software companies
As the Board stated in the trading update released on 6 February, public
market volatility increased sharply through the first quarter of 2026,
especially in the software sector, sparked by investor concerns about the
potential impact of AI on the software industry, coupled with a rotation of
capital out of software and into hardware (chips, memory and data-centre
build-out).
The recent material sell-off in listed software shares and associated
volatility has also had a pronounced negative impact on HgT's share price,
which is down 21.1% period to date at 6 March 2026. The recent widespread
sell-off seen in the sector has been with little distinction made across the
many different players in the space and their respective strengths and
weaknesses.
Given the scale of the recent dislocation between the share price and the
value placed on the assets within the HgT portfolio, the Board considered a
number of potential actions to address the discount to net asset value and the
full set of tools at its disposal. Following the HgT trading update announced
in February, the Board disclosed to shareholders that it had initiated a
buyback programme, following the well-established processes HgT has developed
to manage such situations. The Board is in constant dialogue with the Manager
and its advisers around what proactive steps may be taken to mitigate these
situations.
While public market multiples (both software and tech-enabled services; US and
Europe) are one input to Hg's valuation methodology, relevant private M&A
comparables ('comps') form a material input for valuations, reflecting Hg's
model of acquiring full or effective control of the companies within the
portfolio. The weightings of these comps for each individual business means
the valuation multiples are linked to, but do not fully track, movements in
the public markets. Very broadly and depending on the mix of comparables and
their relative movements, we see typically 20-40% of the movement in public
comparables flow through to the multiples used to value our portfolio
companies.
The multiples derived from these relevant public and private comps are then
applied to the earnings of the portfolio companies, which remain the key
driver of valuations and long-term performance. The HgT portfolio businesses
have typically grown their EBITDA by 10-15% organically each year, i.e. c. 3%
each quarter. In addition, the impact of M&A activity may increase levels
of growth in a given period.
Despite the recent volatility and seemingly indiscriminate negative sentiment
in public markets, HgT's portfolio companies continue to deliver resilient and
profitable organic growth consistent with a "rule of 40" portfolio, while
balance sheets remain robust across the portfolio. Notably, Hg's significant
investment in its own AI initiatives is rapidly building momentum and is now
driving increased value creation across the portfolio. Furthermore, Hg has a
strong track record of generating realisations at premia to carrying value,
including during periods of heightened market volatility, with the significant
majority of exits taking place in the private markets.
Hg's view remains that AI presents significant opportunities for innovative,
product-led, incumbent software companies. Hg has been investing in software
for more than two decades and today we are investors and board members in
>60 privately-owned software and services businesses, providing us with
granular insight into the interactions between SaaS businesses and their
customers, informing our view on how AI will diffuse into the real economy.
In his recent essay, Matthew Brockman, Hg's Chief Investment Officer, shares
his perspectives on how AI is reshaping software, the opportunity this
presents for incumbents and how Hg is working closely with its portfolio
companies as they transition to be AI-first businesses:
hgcapital.com/insights
Prospects
Risk across the global economy and geopolitical environment remained elevated
throughout 2025 and in early 2026, and notably, in recent weeks, with the
latest conflict in the Middle East. In response, the Board has maintained a
strong focus on disciplined risk management and scenario planning. While
geopolitical developments, cyber risk, foreign-exchange volatility,
public-market valuation movements and evolving sentiment toward artificial
intelligence are expected to persist in the near term, the underlying
performance of the HgT portfolio has remained resilient. Continued organic
growth, strong profitability and highly recurring revenues provide a robust
foundation for long-term net asset value growth and sustainable shareholder
returns.
HgT continues to benefit from the quality and consistency of the Hg investment
platform. Its repeatable strategy in mission-critical B2B software and
technology-enabled services, together with deep operational value-creation
capabilities and accelerating AI adoption across the portfolio, supports
sustained earnings growth, attractive investment opportunities and ongoing
realisation activity. Although short-term valuations may fluctuate with market
conditions, the Board believes long-term performance will be driven
principally by earnings growth and disciplined capital allocation.
Accordingly, notwithstanding continued macroeconomic and market uncertainty,
the Board remains positive about HgT's long-term outlook. Strong portfolio
trading, continued access to Hg's investment opportunities and a consistent
focus on value creation position HgT well to deliver attractive and
sustainable returns for shareholders over time.
Jim Strang
Chairman
6 March 2026
Driving AI transformation
20 AI and data in-house specialists
>1,600 GenAI projects live across the portfolio
>100 AI product builds
AI dramatically expands the remit of software. It is a massive expansion of
the value pool from the $1tn software market, into the $50tn human labour
market.
David Toms, Head of Research, Hg
'Six possible things before breakfast' see p38 of the full Annual Report and
Accounts
AI represents one of the most significant technological shifts in recent
times. The speed and manner in which software is developed, and the
capabilities of agentic AI, are advancing rapidly. Hg was one of the first
private equity managers to understand the value of building an AI-focused
in-house team as part of their portfolio operations.
'Everything, everywhere, but not all at once' see p38 of the full Annual
Report and Accounts
A year ago, conversations about AI in enterprise software centred on co-pilots
and personal productivity - promising tools that could make individuals
faster. This year, the tone is different. The technology has crossed an
invisible line. We are no longer talking about AI assistance; we are talking
about fundamentally different operating models that put agents at the core.
The gap between early movers and everyone else is widening faster than anyone
anticipated.
'Silicon Valley Leadership Summit 2026' see p38 of the full Annual Report and
Accounts
We are working with many of our forward-looking portfolio companies on two
fronts - product and operations - to help them 're-found' themselves and
become AI-first
Matthew Brockman, CIO, Hg
GTreasury, the treasury solutions platform acquired by Ripple last year, is a
good example of our Hg Catalyst team working closely with a portfolio company
to develop AI. Below, we provide a case study of GTreasury.
GTreasury - Case Study
£30m HgT proceeds
97% uplift to book value
$1bn enterprise value
Fund: Hg Mercury 4
Entry Date: June 2023
Exit Date: December 2025
Cluster: Tax & Accounting
Hg ownership: 78%(1)
(1)Includes co-investors.
Please note all figures related to HgT's share in GTreasury
Founded in 1986 and headquartered in Chicago, Illinois, GTreasury is a leading
provider of Treasury Management Software solutions to mid-sized enterprise
clients globally, servicing over 1,000 customers across 30 industries and 160
countries.
Having tracked the company for more than five years prior to investing, Hg had
a thesis around mid-market, cash and treasury management software as part of a
secular trend. A focused value creation plan including a full go-to-market
transformation and continued product innovation helped Hg to accelerate
GTreasury's growth.
The Hg Catalyst team worked with GTreasury to launch GSmart AI, a new agentic
product built on top of decades of data and deep domain knowledge. GSmart
proactively identifies risks and variances and recommends strategic actions
for finance leaders. Previously these were tasks that a human would do after
exporting and analysing data from the platform. Now it's all done by agentic
AI software - and customers love it.
Hg completed the sale of GTreasury in December 2025 to a US-based strategic
buyer, Ripple at a 97% uplift to carrying value, in Hg's first AI-driven exit.
Hg Catalyst
Hg Catalyst is our AI product incubator. It deploys small, senior teams to sit
inside portfolio companies and accelerate AI product builds. The focus is on
defining narrow workflows with clear success metrics, fast release cycles, and
reuse of patterns so each new build is quicker and safer than the last. We
operate across the portfolio with a scaled capacity of 80+ engineers, product
managers, and designers. This also means a breakthrough in one business can be
rolled across the rest of the portfolio in weeks, not quarters.
MANAGER'S UPDATE
We are already selling AI-first applications to customers across many
businesses in the portfolio… they look to trusted, existing providers able
to provide integrated new capabilities into established applications,
seamlessly linked to years or decades of proprietary data and workflows. Our
current budgets show a significant EBITDA benefit from AI initiatives.
David Toms, Head of Research, Hg
At the start of the fourth quarter of 2025, software sector performance in the
public markets (based on the IGV ETF(1) that we use as a proxy for the sector)
was looking relatively unexciting on a year-to-date basis. The quarterly
gyrations smoothed out to leave the sector multiple flat for the year, with
earnings showing typical mid-teens growth. By the end of Q4, this dynamic had
shifted - not due to changes in forecasts, but because sentiment, and
therefore multiples, moved to a more negative position, a shift that has
continued into 2026.
(1) iShares Expanded Tech-Software Sector ETF
Focussing first on sector trading, our analysis shows that growth rate
expectations for the sector, which have been on a modest but consistent
negative trend for around three years, stabilised in Q3 and showed slight
improvement in Q4. Indeed, were it not for the shift in sentiment, the tone
for 2026 might be erring towards the upbeat. 2026 revenue growth expectations
are aligned with the 2025 performance, rather than requiring any acceleration,
and the potential for AI-led efficiency gains and addressable market expansion
could give room for outperformance in the second half of 2026.
Despite this, sentiment (expressed via multiples) has taken an aggressively
negative stance. Public markets seem to have concluded that although AI will
dramatically expand the range of opportunities that can be addressed by
software, none of this TAM expansion will be available to incumbent software
companies and instead their existing positions will be eroded. We should be
very clear that this is at odds with the evidence we currently see in our
portfolio, where our current budgets show a significant EBITDA benefit from AI
initiatives. We are already selling AI-first applications to customers across
many businesses in the portfolio - typically (though not exclusively) small
businesses who, as always, desire minimal friction when it comes to software
implementation. They look to trusted, existing providers able to provide
integrated new capabilities into established applications, seamlessly linked
to years or decades of proprietary data and workflows that customers already
understand.
For more insights on this topic please visit hgcapital.com/insights
As we have previously indicated, in any quarter, there are two main factors
influencing our valuations:
One, valuation change in public comparators, of which we, very broadly, see
20-40% of the impact in any one quarter. Our valuation model is driven partly
by such inputs, but also by less volatile, longer-term M&A comparables in
the public and private markets.
Our multiples are generally directionally similar to US public software
indices, albeit more muted (in both directions). However, at times there can
be modest divergence, generally reflecting the precise mix of comps that we
use and the relative weightings of those.
Secondly, growth in earnings. Our companies have typically grown their EBITDA
by 10-15% organically each year, i.e. c. 3% each quarter, and approximately
double this on an 'all in' basis including M&A.
The relative pace of both movements (rating changes can be relatively rapid;
earnings growth tends to be much steadier) dictates movements in any one
quarter, but over time, earnings growth tends to dominate.
Abrupt movements in public market valuations can create opportunities for us
to exploit what we see as material mispricing opportunities, and we continue
to look to capitalise on these through P2P transactions.
Luke Finch, Head of Client Services, Hg
Hg activity over 2025
c.£4.5bn invested
>£2.0bn returned
Outlook
Looking ahead to the rest of 2026 - public markets are now valuing software
companies broadly in line with the overall market, i.e. the long-term c. 50%
premium that software has attracted, has faded. This is in spite of sustained
superior growth, margins and cash flows. Private markets do not reprice in the
same way - we saw similar trends in public markets in 2022, yet throughout
that period we continued to generate liquidity from our portfolio at a premium
to our holding values, and at a very material premium to public peers.
However, should current public market multiples persist, this is likely to
cause a further headwind to our own valuation multiples in future periods, as
private markets absorb an element of the public market movements. The flipside
of this is that abrupt movements in public market valuations can create
opportunities for us to exploit what we see as material mispricing
opportunities, and we continue to look to capitalise on these through P2P
transactions. Our continued investments in AI capabilities and the expansion
of our serial chair program position us well to capture the significant
opportunities ahead, particularly as agentic AI moves from potential to
productivity, in products that are offered to customers across our portfolio.
Following the de-rating in listed software companies, we do not believe that
public markets currently ascribe sufficient value to the types of
mission-critical B2B software businesses in Hg's core clusters. From an
investment perspective this creates opportunities. We recently agreed a
take-private transaction for OneStream, a US financial software provider, at
an attractive valuation for a business with strong growth and a significant
margin opportunity. Correspondingly, the public markets currently represent a
less attractive route for exits, with sales to strategics and financial
sponsors anticipated to remain the primary exit routes in this environment.
In the longer term, we expect the market to differentiate those workflow
applications that possess domain-specific data, context, and customer trust.
Many such applications will retain their own customer relationships and
provide agentic capabilities to their customers, materially enhancing their
value. Another revenue opportunity is to provide deterministic capabilities as
"tool calls" to other AI applications, and in turn to leverage those
applications to broaden their own capabilities - taking up the slack for what
is, demographically, a shrinking human labour pool. Development and
commercialisation of such capabilities has been underway within our portfolio
for over two years now, with examples such as Access's AI-powered payroll and
IFS's partnership with Anthropic:
peoplehr.com/en-gb/evo/ai-powered-payroll
ifs.com/en/insights/news/ifs-partners-with-anthropic
OVERVIEW OF THE UNDERLYING PORTFOLIO
held through HgT's limited partnerships
Investments Fund Cluster Location Year(1) Residual Total Portfolio Cum.
(in order of value) cost valuation(2) value Value
£000 £000 % %
1 Visma S1/S2/S3/HGT Tax & Accounting/ERP & Payroll Scandinavia 2024 209,271 391,785 11.9 11.9
2 IFS S3/S4/HGT ERP & Payroll Scandinavia 2022 208,349 314,676 9.6 21.5
3 Access S3/G8/HGT ERP & Payroll UK 2020 165,269 229,931 7.0 28.5
4 P&I S1/S4/HGT ERP & Payroll Germany 2025 141,096 219,209 6.7 35.2
5 Howden S2/HGT Insurance UK 2021 85,825 169,608 5.2 40.4
6 Septeo G9/G10/HGT Legal & Regulatory Compliance France 2020 63,058 127,804 3.9 44.3
7 Ideagen G10/G9/M3/HGT Legal & Regulatory Compliance UK 2022 68,861 117,495 3.6 47.9
8 Auditboard S3/HGT Legal & Regulatory Compliance N.America 2024 98,499 114,602 3.5 51.4
9 Litera G8/G9 Legal & Regulatory Compliance N.America 2019 28,919 102,239 3.1 54.5
10 IRIS S3/HGT Tax & Accounting/ERP & Payroll UK 2024 75,381 84,779 2.6 57.1
11 FE fundinfo M2/G9 Fintech UK 2021 26,402 79,843 2.4 59.5
12 Sovos S2/HGT Tax & Accounting N.America 2020 49,593 67,488 2.1 61.6
13 team.blue G10/HGT Tech Services Benelux 2022 35,911 67,452 2.1 63.7
14 Waystone S2/HGT Legal & Regulatory Compliance UK 2022 46,269 56,774 1.7 65.4
15 Gen II G9 Fintech N.America 2020 21,416 55,475 1.7 67.1
16 LucaNet G9 Tax & Accounting Germany 2022 20,050 54,317 1.7 68.8
17 Azets G7/HGT Tax & Accounting UK 2016 26,505 52,996 1.6 70.4
18 GGW S3 Insurance Germany 2024 45,875 52,326 1.6 72.0
19 Intelerad G8 Healthcare IT N.America 2020 11,870 51,642 1.6 73.6
20 Caseware G8 Tax & Accounting N.America 2020 11,238 50,923 1.6 75.2
21 A-LIGN G10/HGT Legal & Regulatory Compliance N.America 2025 43,559 49,618 1.5 76.7
22 Rhapsody M2/M3/HGT Healthcare IT N.America 2022 20,757 44,648 1.4 78.1
23 insightsoftware S2/HGT Tax & Accounting N.America 2021 53,493 44,625 1.4 79.5
24 Ncontracts G10 Legal & Regulatory Compliance N.America 2024 31,404 42,598 1.3 80.8
25 Benevity S2/HGT ERP & Payroll N.America 2021 32,124 42,547 1.3 82.1
26 Ivalua G10 Tax & Accounting France 2024 33,030 42,414 1.3 83.4
27 HHA G9 Healthcare IT N.America 2021 24,633 40,641 1.2 84.6
28 Project CH S2 Tax & Accounting Germany 2021 18,159 38,485 1.2 85.8
29 Citation G10 Tech Services UK 2025 30,648 31,813 1.0 86.8
30 Trackunit G9/HGT Automation & Engineering Scandinavia 2021 28,619 28,944 0.9 87.7
31 Prophix G9 Tax & Accounting N.America 2021 12,458 28,605 0.9 88.6
32 Norstella M2/G9/HGT Healthcare IT N.America 2020 24,730 28,574 0.9 89.5
33 CINC M4/HGT Tax & Accounting N.America 2024 19,235 24,854 0.8 90.3
34 Blinqx M3/HGT ERP & Payroll Benelux 2022 13,749 23,405 0.7 91.0
35 Auvesy M3 Automation & Engineering Germany 2021 8,130 23,063 0.7 91.7
36 Fonds Finanz M3 Insurance Germany 2022 8,309 22,834 0.7 92.4
37 Geomatikk M2/HGT Tech Services Scandinavia 2021 11,392 20,169 0.6 93.0
38 Pirum M3/HGT Fintech UK 2022 13,928 19,233 0.6 93.6
39 Focus Group G10 Tech Services UK 2024 21,876 18,840 0.6 94.2
40 Diamant G10 Tax & Accounting Germany 2025 18,405 18,485 0.6 94.8
41 Ctaima M4 Legal & Regulatory Compliance Spain 2024 12,005 17,764 0.5 95.3
42 Payworks G10 ERP & Payroll N.America 2025 16,897 17,677 0.5 95.8
43 Cube M4 Legal & Regulatory Compliance UK 2024 10,508 16,585 0.5 96.3
44 JTL M4 ERP & Payroll Germany 2023 7,559 16,255 0.5 96.8
45 Serrala G9 Tax & Accounting Germany 2021 23,086 14,423 0.4 97.2
46 NomadIA M3 ERP & Payroll France 2023 7,815 13,191 0.4 97.6
47 Workwave S3/HGT ERP & Payroll Scandinavia 2022 19,619 12,890 0.4 98.0
48 Empyrean M4 Fintech N.America 2024 11,408 12,185 0.4 98.4
49 Mitratech G7/HGT Legal & Regulatory Compliance N.America 2017 3,328 11,535 0.4 98.8
50 Bright M3 ERP & Payroll Ireland 2021 3,507 11,102 0.3 99.1
51 Quantios M3 Fintech UK 2022 6,697 10,100 0.3 99.4
52 Induver M4 Insurance Benelux 2024 5,230 8,709 0.3 99.7
53 MyUniSoft G10 Tax & Accounting France 2024 5,243 6,433 0.1 99.8
54 Scopevisio M4 ERP & Payroll Germany 2025 4,826 5,162 0.1 99.9
55 Nitrogen M3/HGT Fintech N.America 2021 15,868 4,868 0.1 100.0
56 F24 M2/HGT Tech Services Germany 2020 3,625 4,084 0.1 100.1
57 Ascendia S3 Insurance Germany 2025 2,420 2,910 0.1 100.2
58 Revalize G9 ERP & Payroll N.America 2021 19,898 2,814 0.1 100.3
59 Parte M4 Tech Services Benelux 2025 2,344 2,386 0.1 100.4
60 Teamworks G10 ERP & Payroll N.America 2025 1,276 1,300 - 100.4
61 ASS G8 Automation & Engineering Germany 2017 16,224 - - 100.4
Total buyout investments (61) 2,107,677 3,288,133 100.4
Other Hedges - (13,826) (0.4) 100.0
Total all investments 2,107,677 3,274,307 100.0
( )
(1 ) Where re-investment has occurred the investment date is based on the
closing of the largest tranche of the investment holding.
(2 ) Including accrued income of £106.1 million. Note that this is
summary of the underlying investments held indirectly by HgT at fair value
within the fund limited partnerships. Please refer to page 70 of the full
Annual Report and Accounts for a reconciliation to the fair value of the funds
held directly by HgT.
DIVIDEND
The final dividend proposed in respect of the year ended 31 December 2025 is
3.0 pence per share (following the interim dividend of 2.0 pence, bringing the
full year dividend to 5.0 pence per share).
Ex-dividend date 19 March 2026
(date from which shares are transferred without dividend)
Record date 20 March 2026
(last date for registering transfers to receive the dividend)
Last date for registering DRIP instructions (see below) 20 April 2026
Dividend payment date 12 May 2026
NOTICE OF ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held on Thursday, 7 May 2026
at 11.00 am at the Hilton London Tower Bridge, 5 More London Place, Tooley
Street, London, SE1 2BY. The formal Notice of AGM can be found within the
Annual Report. The Board is of the opinion that the passing of all
resolutions being put to the AGM would be in the best interests of HgT and its
shareholders. The Directors therefore recommend that shareholders vote in
favour of all resolutions as set out in the Notice of Meeting (pages 123 to
128 of the Annual Report available on HgT's website) as they intend to do in
respect of their own shareholdings.
FURTHER INFORMATION
HgT's Annual Report and Accounts for the year ended 31 December 2025 (which
includes the Notice of Meeting for the Company's AGM) will be available today
on www.hgcapitaltrust.com (http://www.hgcapitaltrust.com/) . It will also be
submitted shortly in full unedited text to the Financial Conduct Authority's
National Storage Mechanism and will be available for inspection
at data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) in accordance with
DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules. Printed copies of this document will be sent to
shareholders in due course.
The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2024 or 2025 but
is derived from those accounts. Statutory accounts for 2024 have been
delivered to the Registrar of Companies, and those for 2025 will be delivered
in due course. The text of the Auditors' report can be found in the Company's
full Annual Report and Accounts at www.hgcapitaltrust.com
(https://www.hgcapitaltrust.com)
ENDS
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) is
incorporated into, or forms part of, this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR SSEESMEMSEDD
Copyright 2019 Regulatory News Service, all rights reservedRecent news on HgCapital Trust
See all newsREG - HgCapital Trust PLC - Transaction in Own Shares
AnnouncementREG - HgCapital Trust PLC - Transaction in Own Shares
AnnouncementREG - HgCapital Trust PLC - Transaction in Own Shares
AnnouncementREG - HgCapital Trust PLC - Transaction in Own Shares
AnnouncementREG - HgCapital Trust PLC - Transaction in Own Shares
Announcement