REG - HgCapital Trust PLC - Hg announces sale of GGW Group

HgCapital TrustAnnouncement

08/12/2023 16:30

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RNS Number : 2334W  HgCapital Trust PLC  08 December 2023

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces that it has
agreed a realisation of GGW Group ("GGW"), one of the leading European
insurance brokerage platforms for small and medium-sized enterprises
("Mittelstand"), with Permira investing in the business.

 

The terms of the transaction have not been disclosed and completion is subject
to closing conditions.

 

HGT, whose shares are listed on the London Stock Exchange, gives private and
institutional investors the opportunity to participate in all Hg's
investments.

 

This transaction values HGT's investment in GGW at approximately £93.8
million. This would represent an uplift of £27.0 million (40% or 5.9 pence
per share) over the carrying value of £66.8 million in the Net Asset Value
("NAV") of HGT at 30 September 2023.

 

Note that these figures only relate to HgCapital Trust's share of Hg's overall
investment in GGW.

 

Based on the 30 September 2023 reported NAV, the pro-forma NAV of the Trust is
expected to be £2.3 billion (or 498.5 pence per share).  HGT's available
liquid resources, which includes the undrawn bank facility of £350 million
for future deployment (including all announced transactions and the interim
dividend paid in October) are estimated to be £760 million (33% of the
pro-forma 30 September 2023 NAV).

GGW Group secures investment from Permira

as the firm scales as a leading insurance brokerage group in Europe

Frankfurt, Germany - 8 December 2023: Permira, the global private equity firm,
today announced that a company backed by the Permira funds has agreed to
acquire GGW Group. GGW Group is one of the leading European insurance
brokerage platforms for small and medium-sized enterprises ("Mittelstand")
currently owned by Hg, a leading investor in European and transatlantic
software and services businesses. Closing is subject to regulatory clearances
and expected in the second quarter 2024.

Founded by CEO Tobias Warweg, the Group has driven a best in class insurance
brokerage platform in Germany over the last 3 years. Today, more than 50
brokerage companies are operating under the roof of GGW Group, advising small
and medium-size enterprises in Europe.

Tobias Warweg, CEO of GGW Group, said: "The backing from the Permira funds
marks an important milestone and yet we are only at the very beginning of
GGW's success story. We are looking forward to working with Permira and are
excited about the future as we continue to grow in Germany and expand further
across Europe. Thanks to my fantastic colleagues we have surpassed all of our
expectations, and quickly become a leading commercial insurance distribution
platform in Germany and other European countries. The partnership with Hg has
been a core pillar for our success."

GGW Group fits the Permira funds' Services strategy of investing in leading
platforms in resilient growth markets with great revenue quality and embedded
value creation potential. GGW Group offers attractive value to brokers joining
the platform - offering scale benefits, breadth of offering across risk types
and client benefits from going to market jointly. The Permira funds intend to
support GGW Group in its acquisitive growth strategy in the highly fragmented
German and European insurance brokerage industry.

Philip Muelder, Head of the Services sector at Permira, said: "The Permira
Funds are excited to support GGW Group and the management team on their growth
journey towards becoming the No 1  insurance brokerage for small and medium
sized enterprises. Tobias and his team have built a fantastic platform for
leading B2B brokers who can offer the best individual risk concepts and
insurance solutions to their clients through the integrated platform of GGW
Group. We are looking forward to supporting Tobias and GGW Group writing the
next chapter of the growth story together."

Florian Kreuzer, Head of DACH at Permira, said: "With GGW Group, the Permira
Funds invest in another leading services platform in Germany after the
acquisition of Engel & Völkers two years ago. This underlines our team's
strong expertise in one of our key growth sectors in the DACH region - besides
being one of the largest investors in technology, healthcare and consumer.
Permira has a long and proven track-record of successfully supporting
companies in their transformation journey towards becoming stronger, more
international and more digital."

Initiated and led by Tobias Warweg and with the help of Hg in 2020, the group
has attracted a rising number of partners to the platform which was one of the
key growth drivers in recent years. Decades of experience in the insurance
sector, Hg's local relationships and a trusted partnership with Tobias,
enabled the foundation of a highly entrepreneurial brokerage group.

Justin von Simson and Benedikt Joeris, both Partners at Hg, said: "This
investment really highlights what gets us out of bed in the morning at Hg. It
started as an innovative and very entrepreneurial idea, building a
high-quality business alongside a long-trusted partner, in a sector we've
studied over decades. We're delighted for the team and look forward to seeing
their continued success."

 

For further details:

 

Hg

Tom Eckersley
 
+44 (0)208 148 5401

 

HGT

Laura
Dixon
+44 (0)20 8396 0930

 

Brunswick

Azadeh
Varzi
+44 (0)207 404 5959

Hg@brunswickgroup.com

 

About HgCapital Trust plc

 

HgCapital Trust plc, whose shares are listed on the London Stock Exchange
(ticker: HGT.L), gives investors exposure through a liquid vehicle to a
portfolio of high-growth private companies in the software and services
sector. The selection of new investments and creation of value in these
businesses are 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, please see
www.hgcapitaltrust.com.

 

The contents of the Hg, HgCapital Trust. GGW and Permira websites are not
incorporated into, and do not form part of, this announcement.

 

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