HgCapital Trust PLC
10 August 2026
HgCAPITAL TRUST PLC
TRADING UPDATE FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2026
ESTIMATED NAV BROADLY UNCHANGED IN Q2 AS IMPACT OF ONGOING STRONG TRADING OFFSET BY A CONTRACTION IN WIDER MARKET SOFTWARE RATINGS
London, 10 August 2026: HgCapital Trust plc ('HgT') today announces a trading update for the six months ended 30 June 2026.
HgT provides investors with a listed vehicle to invest in one of the largest and fastest-growing portfolios of unquoted technology companies in Europe1, 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 has been demonstrated with a 10-year share price total return of +283%, outperforming the FTSE All-Share Index by +153% over this period2.
Highlights for H1 2026 include:
HgT's NAV stabilised in the second quarter of 2026, following a more volatile first quarter, with continued strong trading across the portfolio broadly offsetting a further reduction in valuation ratings.
● Estimated Net Asset Value ('NAV') per share of 530.7 pence (unaudited)
● Estimated NAV total return per share2 of 0.5% in Q2, resulting in a total return of -4.9% for H1 2026
● Share price total return2 of -2.6% in Q2, resulting in a total return of -24.9% for H1 2026
● LTM revenue and EBITDA growth of 16% and 19% and margins of 34% for the overall portfolio (organic growth of 11% and 17% respectively)3
● Weighted portfolio average valuation multiple (EV/EBITDA) of 22.9x (31 December 2025: 25.2x)3
● Net debt to EBITDA ratio of 6.9x (31 December 2025: 7.4x)3
● Investments of £146 million
● Realisations of £134 million, with full exits at an average uplift of 31% to carrying value
● Share buybacks of £19m over the period
● Available liquid resources of £254 million (including a £375 million credit facility, of which £134 million was drawn at 30 June 2026)
● Outstanding commitments to Hg funds totalling £2.0 billion which are expected to be called over the next 4-5 years
● Hg to increase its strategic ownership of HgT from c.6% to over 15% over the medium term, through on-market purchases
NAV performance
HgT's unaudited estimated net assets of £2.4 billion at 30 June 2026, represent an estimated NAV per share of 530.7 pence, based on portfolio company valuations at 30 June 2026 and reviewed by the HgT Audit, Valuation and Risk Committee. Estimated NAV total return for H1 was -4.9%, with a decline in Q1 (-5.4%) followed by broadly flat performance in Q2 (0.5%).
Trading remains the key driver of performance over the long-term. In H1 2026, movements in comparable company multiples weighed on shorter-term performance, particularly in the first quarter, before stabilising in the second. While continued strong trading performance across the portfolio added 11% to portfolio value over H1 (Q2 2026: 6%), weakness in public software valuations, reflecting caution from investors over the potential impact of AI on the sector, led the multiples used to value HgT's portfolio companies to fall, reducing valuations by 13% over the period (Q2 2026: -5%). A modest increase in net debt further reduced portfolio NAV (-2% over H1).
Investment activity
● HgT invested £146 million in H1 2026, including new investments in OneStream and Rightsline, and further investment in Septeo and Teamworks, of which £46 million was fee-free co-investment. Co-investments now represent c.11% of NAV, in line with HgT's long-term goal of 10-15%
● Post-period investment of £7 million in Street Group, a provider of vertical software and AI to the UK residential property sector
Realisation activity
● Gross proceeds from realisations during the period of £134 million. This includes the full exits of Intelerad and Geomatikk at an average uplift to carrying value of 31%, the partial exit of Septeo, and refinancing proceeds from LucaNet, AMDT, Fonds Finanz and Ncontracts
● Post-period realisation of £13 million from the full exit of Quantios at an uplift to carrying value of 31%, expected to complete in Q3 2026
Pro-forma balance sheet
Allowing for all FX movements and transactions announced as at the date of this trading update:
● Pro-forma outstanding commitments to Hg funds of £2.0 billion, of which c.£200 million is not expected to be called. The remainder is expected to be drawn down over the next 4-5 years and includes c.£850 million of commitments to the Hg Genesis 11 and Hg Mercury 5 funds, which are not expected to be activated until early 2027, and which benefit from a subscription facility, delaying capital calls for a further 12 months from the point of investment
● HgT maintains the right to opt out of its obligation to fund its commitments without penalty, where certain conditions exist
● Pro-forma available liquid resources of £260 million (including a £375 million credit facility of which £134 million was drawn at the time of this announcement)
● HgT is in advanced discussions to upsize and extend the current credit facility which is due to expire in March 2027. Conversations with lending banks have been constructive and we will provide a further update in due course
Jim Strang, Chairman of HgT, commented:
"The underlying trading performance of HgT's portfolio in the first half remained strong. It is the compounding of this fundamental trading performance, rather than short-term movements in comparable company multiples, that we believe supports long-term value creation for shareholders. As with the wider listed software sector, in the short term, valuations of HgT's unquoted portfolio companies have been affected by market uncertainty about the impact of AI on software business models.
We remain confident in the long-term investment case for the mission-critical B2B technology and services businesses that make up the HgT portfolio. The businesses in the portfolio are typically deeply embedded in their customers' workflows, hold proprietary domain data built up over many years, and operate in regulated or high-trust environments where switching costs are high. These are characteristics that we believe make them resilient to, and indeed well-placed to benefit from, the application of AI. Recent transactional evidence supports this view, with strategic and financial buyers willing to pay sizable premiums to carrying value to acquire businesses from the HgT portfolio, and cash-back from four successful refinancings in H1.
Despite continued strong trading and recent exit activity, HgT's share price has been affected by the broader sell-off in public software companies. The Board and Hg believe that the current share price undervalues the HgT portfolio and its future prospects. The Board welcomes Hg's announcement in June to build its own strategic shareholding in HgT toward more than 15%, which we see as a clear signal of alignment with HgT shareholders, and of confidence in the portfolio at current valuations."
Hg REPORTS STRONG TRADING AND TRANSACTION ACTIVITY OVER H1 2026, REFLECTING CONTINUED INVESTOR APPETITE FOR MISSION-CRITICAL TECHNOLOGY BUSINESSES
Since the start of 2026, Hg has announced or completed a total of eight liquidity events across its portfolio, of which four were full or partial exits, accompanied by strong underlying trading performance across the portfolio.
Investment activity has continued across all Hg funds, with four transactions completed and $3.9 billion deployed year-to-date, at levels consistent with the long-run average. This activity continues to focus on businesses within the end-market, mission-critical software and services 'clusters' which Hg has tracked for many years.
Year-to-date, Hg has realised over $1.4 billion of proceeds from these liquidity events, as part of a continued focus on returning cash to investors.
This record of realisations, achieved even as the industry continues to find generating liquidity challenging, reflects continued investor appetite for high-quality, mission-critical technology businesses that generate resilient, growing cash flows.
HgT will report its full interim results for the first six months of the year on 14 September 2026.
The Company confirms that all inside information which the Directors and the Company may have in the period leading up to the announcement of its interim results for the six months ended 30 June 2026 has been, with the release of this announcement, and will continue to be notified to the London Stock Exchange via a regulatory information service. Accordingly, in the absence of any new undisclosed inside information arising, the Company is not prohibited from dealing in its own shares.
The mandatory closed period under MAR will commence on 15 August 2026 and will last until the interim financial results in respect of the six months ended 30 June 2026 are published.
1 By Enterprise Value, Source: Hg, FactSet.
2 Total return assumes that all historical dividends have been re-invested.
3 Excluding investments valued on a basis other than earnings as at 31 May 2026.
- ends -
For further information please contact:
HgCapital Trust
Laura Dixon
laura.dixon@hgcapital.com
+44 782 459 2894
George Crowe
george.crowe@hgcapital.com
+44 777 461 7150
Hg
Tom Eckersley
tom.eckersley@hgcapital.com
Sam Ferris
sam.ferris@hgcapital.com
Cadarn
Lucy Clark
lucy@cadarncapital.com
+44 798 418 4461
David Harris
david@cadarncapital.com
+44 736 888 3211
Notes:
1. Please be advised that this announcement may contain inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.
2. This announcement may include "forward-looking statements". These forward-looking statements are statements regarding the Company's objectives, intentions, beliefs or current expectations with respect to, amongst other things, the Company's financial position, business strategy, results of operations, liquidity, prospects and growth. Forward-looking statements are subject to risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Accordingly, the Company's actual future financial results, operational performance and achievements may differ materially from those expressed in, or implied by, the statements. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward-looking statements, which speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the Company's expectations with regard to them or any change in events, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Regulation Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
3. 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. You may not get back the amount you invest.
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.
Further information on HgT including a short introduction video is available here: https://www.hgcapitaltrust.com/
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