4th Aug 2025 12:28
(Alliance News) - HgCapital Trust PLC on Monday reported a negative return in the first half of 2025, as a positive return in the second quarter couldn't fully make up for a negative first quarter.
The London-listed private equity investment trust has a market capitalisation of GBP2.35 billion and is managed by Hg.
The trust estimated that its NAV per share was 540.2 pence at June 30, down from 545.5 pence at December 31, for a negative total return of 0.3% during the six-month period.
This reflects a decline of 2.0% in the first quarter, offset by 1.7% growth in the second.
According to HgCapital Trust, the comparable transaction multiples used to value its investees contracted during the first half of the year, lowering the portfolio value by 4%. This led to a negative total return, despite "strong underlying trading", which grew 7% over the six-month period.
The trust cited a 1% decrease from currency exchange rates and a 1% increase in net debt as other contributors to the lower return rate.
Around GBP383 million proforma liquid resources were available as of June 30, up from GBP336 million at December 31.
When compared with the first half of 2024, gross proceeds from realisations were lower in the six months to June 30, decreasing to GBP165 million from GBP348 million. The trust maintained that its realisation track record "compares favourably to peers, as the industry continues to find generating liquidity challenging". It has returned around USD2.0 billion via liquidity events in the year-to-date.
New and follow-on investment totalled GBP306 million during the first half of 2025, down slightly from GBP310 million a year ago.
HgCapital Trust noted that around 10% of NAV currently comes from co-investment, on which it pays no management fees or carried interest, in line with the long-term aim for between 10% and 15% of NAV to derive from co-investment.
Looking ahead, HgCapital Trust has new commitments to its Genesis 11 and Mercury 5 funds, worth EUR350 million and EUR150 million respectively, set to begin in 2026. A USD1.0 billion investment in Saturn 4, which was announced back in March, will be called within three to four years.
Additionally, proforma outstanding commitments to Hg funds of GBP1.7 billion are expected to be called lower in the next four to five years.
The trust will publish its full half-year results on September 15.
HGCapital Trust shares were 0.7% higher at 514.36 pence on Monday morning in London. They have risen 7.1% over the past 12 months.
By Holly Munks, Alliance News reporter
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