REG - HgCapital Trust PLC - TrustQuay Secures Hg Investment

HgCapital TrustAnnouncement

04/10/2022 08:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221004:nRSD6985Ba&default-theme=true

RNS Number : 6985B  HgCapital Trust PLC  04 October 2022

 

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces an investment
in TrustQuay, a leading technology provider to the global trust, corporate and
fund services industry.

 

The terms of the transaction are not disclosed.

 

HGT will invest approximately £9.1 million in TrustQuay, with other
institutional clients of Hg investing alongside HGT through the Hg Mercury 3
Fund.

 

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

 

Note that these figures only relate to HGT's share of Hg's overall investment
in TrustQuay.

 

HGT's liquid resources available for future deployment (including all
announced transactions, the undrawn bank facility and the interim dividend
payable in October) are estimated to be £357 million (17% of the pro-forma 31
August 2022 NAV of £2.0 billion).

 

The investment will reduce HGT's outstanding commitments to invest in Hg
transactions to approximately £1.1 billion (54% of the pro-forma 31 August
2022 NAV).

 

TrustQuay secures Hg investment to further accelerate its vision to digitalise
the Trust, Corporate and Fund Service sector

 

Fleet and London, United Kingdom. 4 October 2022.  TrustQuay, a leading
technology provider to the global trust, corporate and fund services industry,
has today announced that Hg, a leading software and services investor, has
become majority investor in the business.

 

TrustQuay provides entity management, client accounting, practice management,
compliance and workflow software for trust, fund and corporate service
providers around the world.

 

Over the next phase of growth, TrustQuay aims to scale further as a global
leader by accelerating the digitalisation of this segment, including with the
roll-out of TrustQuay Online, a brand new, sector-leading and feature-rich
SaaS offering that will revolutionise how customers operate in this industry.

 

TrustQuay serves more than 360 customers and 26,000 users in over 30
jurisdictions, through eleven offices worldwide in key jurisdictions including
Australia, Guernsey, Jersey, Luxembourg, Singapore, and the United Kingdom.

 

Keith Hale, Executive Chairman of TrustQuay, comments: "Our mission is to
automate and digitalise the trust, corporate and fund services software sector
- offering our customers the combination of best functional capabilities with
the most modern, up-to-date technology. This enables customers to digitally
transform their businesses to become more efficient and differentiate
themselves in the market.

 

"I'd like to thank Silverfleet Capital for their support over the last three
years. We're incredibly excited to reach this significant milestone and it is
an excellent endorsement of our mission and progress over those three years.
Hg has an amazing track record of supporting technology software providers to
financial markets and we're excited about what this new tech expertise and
resource will deliver for our customers, our team and our industry."

 

Richard Earnshaw, Director at Hg, said: "At Hg we focus on SaaS and technology
businesses that are leading their sector towards change and a better way of
working. TrustQuay is an exciting business which is applying this vision to
the trust, corporate services and fund industry, having developed a quality,
modern product and with ambitious future plans.  To date we've aggregated
over a decade of experience in fintech, investing over $1 billion in more
than 10 fintech leaders in the last five years alone. We're excited to apply
this experience as we partner with Keith and a great entrepreneurial team."

 

Ian Oxley, Partner at Silverfleet Capital, comments: "TrustQuay is a
high-quality business, and we are delighted to have helped the company achieve
its objectives under our ownership. We have again demonstrated our skills at
executing a high-growth plan through both organic expansion and acquisitions,
and our ability to help our portfolio companies undergo significant digital
transformation. Our thanks go to the TrustQuay management team who have
continued to build on the global leading position of the business and to
roll-out major new releases of the software including TrustQuay Online."

 

As part of the transaction, the TrustQuay management team continues in the
business whilst the former majority owner Silverfleet Capital has fully exited
its position.

 

The Hg team was advised by Skadden, Arps, Slate, Meagher & Flom LLP. The
Silverfleet Capital team was advised by Eversheds Sutherland and Baird. The
TrustQuay management team was advised by K&L Gates, Jamieson and BDO.

 

For further details:

 

Hg

Tom Eckersley
 
                    +44 (0)208 148 5401

 

HgCapital Trust

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, SilverFleet and TrustQuay's websites
are not incorporated into, and do not form 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  ACQMIBRTMTTMMTT