6th Nov 2025 12:14
(Alliance News) - HgCapital Trust PLC on Thursday reported a rise in net asset value for the third quarter of 2025, supported by resilient performance from its portfolio of software and services businesses, though its share price declined during the period.
The London-based provider of access to the private equity investments of manager Hg said its NAV per share rose 2.4% in the three months to September 30 to GBP5.50, with total net assets of GBP2.5 billion.
However, the share price fell 2.7% to GBP4.99 during the quarter, giving the company a market capitalisation of GBP2.3 billion.
HgCapital said portfolio trading remained strong, contributing around 4% to growth in the quarter, although this was partly offset by an increase in net debt.
The portfolio's sales and earnings before interest, tax, depreciation, and amortisation grew by 18% and 19%, respectively, over the last 12 months, with an Ebitda margin of 33%.
Realisations in the third quarter totalled GBP7 million, primarily from a partial sale of equipment telematics firm Trackunit.
After the quarter's end, HgCapital completed the exit of treasury and risk management software company GTreasury, which is expected to deliver GBP30 million at a 97% uplift to carrying value.
New investments during the quarter totalled GBP49.7 million, mainly into A-LIGN, a US-based cybersecurity compliance services provider.
This was partly offset by GBP19.7 million of equalisation following the latest closing of the Hg Saturn 4 fund, and an estimated GBP17 million post-period investment in Payworks.
Co-investments now account for 10% of NAV, up from 9% at the start of the year.
HgCapital said it continues to identify an "attractive pipeline" of investment opportunities and expects further liquidity events over the next six to twelve months.
The trust reported available liquid resources of GBP379 million, including a GBP375 million bank facility of which GBP46 million was drawn. Commitments to Hg funds stand at GBP1.7 billion, to be invested over the next four to five years.
Shares in the trust were up 1.5% at 480.50 pence in London at midday on Thursday.
By Eva Castanedo, Alliance News reporter
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