15th Feb 2016 08:49
LONDON (Alliance News) - HgCapital, the manager of London-listed HgCapital Trust PLC, on Monday said it has taken a majority stake in Citation, a UK provider of professional compliance services.
Citation is headquartered in Cheshire and employs over 350 professionals, serving 16,000 clients in areas such as human resources and employment law. HgCapital will assume majority ownership from private equity group ECI Partners, investing alongside the existing management team. ECI said it generated a multiple of 5.4 times money for its investors.
The terms of this transaction were not disclosed. HgCapital Trust said it will invest in Citation alongside other institutional clients of HgCapital, which will participate through the HgCapital 7 Fund.
The trust will contribute about GBP10.5 million as part of the broader investment.
Based on net asset value as of November 30 last year, the trust's liquid resources available for future deployment are estimated at GBP38.8 million, equivalent to 8.0% of the pro-forma figure at that date and excluding a GBP40.0 million standby debt facility.
The transaction will reduce the trust's outstanding commitments to invest in HgCapital deals to about GBP117 million, equal to 24% of the pro-forma net assets at the end of November.
Shares in the trust were up 1.0% at 1,000.00 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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