Annual Financial Report

LEI: 213800J7QUJJBEFSIN38

HgCapital Trust plc

ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025

POSITIVE NAV PERFORMANCE DRIVEN BY STRONG TRADING IN THE UNDERLYING PORTFOLIO IN CHALLENGING CONDITIONS

London, 9 March 2026: HgCapital Trust plc ('HgT'), today announces its annual results for the year ended 31 December 2025. 

HgT provides investors with a listed vehicle to invest in one of the largest and fastest growing portfolios of unquoted technology companies in Europe, 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 objective has been demonstrated with a 10-year share price total return of +18.9% p.a., outperforming the FTSE All-Share Index by +10.5% p.a. over this period.

Key highlights for 2025 include:

§ NAV per share total return was 4.0% over the year, and as a result, at 31 December 2025 stood at £5.62 with net assets of £2.6 billion

§ The share price total return showed a decrease of 4.9% over 2025 at £5.07; market capitalisation at the year-end was £2.3 billion

§ Strong underlying performance from the portfolio with LTM revenue and EBITDA growth of 17% and 19% and margins of 33% for the overall portfolio; in line with prior year figures

§ Investments of £357 million made over the year and realisation proceeds of £215 million generated

§ Realisations in 2025 included GTreasury at an uplift of 97% to book value, overall, exits over the year added 4.6 pence to the NAV

§ In November, HgT announced the exit of Intelerad (due to complete in March 2026). The transaction price reflected an uplift of 62% to its last reported carrying value

§ At year-end, HgT had available liquid resources of £368 million (including a £375 million credit facility, of which £36 million was drawn as at 31 December 2025)

§ Realisations over 2025 saw an average uplift to book value of 25%

§ Substantive completion of the current cycle of commitments to Hg funds. Outstanding commitments to Hg funds totalling £2.2 billion* (85% of NAV) at year-end which are expected to be called over the next four to five years

§ Ongoing share buyback programme initiated on 6 February 2026

* Includes the top-up commitments in Hg Genesis 11 and Hg Mercury 5 which had not previously been reflected in the £1.8 billion outstanding commitments reported in the Trading Update on 6th February 2026.

Based on HgT's share price at 31 December 2025 and allowing for all historic dividends being reinvested, an investment of £1,000 made 20 years ago would now be worth £13,881, a total

return of 1,288%. An equivalent investment in the FTSE All-Share Index would be worth £3,839.

Jim Strang, Chairman of HgT, commented:

"Against the challenging macro-environment backdrop and volatile environment for technology investments, companies within the HgT portfolio continued to report strong and consistent underlying trading performance, with LTM sales growing at 17% and EBITDA growing at 19% respectively, with EBITDA margins of 33%. These figures are consistent with those reported last year and compare favourably with similar businesses. In this uncertain world investors should be comforted by the experience, focus and discipline of Hg as a technology investor targeting investments with very specific characteristics which serve to tilt the risks and returns of investing in their favour. Notably, the mission-critical nature of the technology and services in which Hg invests, where embedded workflows tied to systems of record, deep domain knowledge and recurring revenue models, continue to support resilient demand even during periods of technological and market transition.

Recent exit events, where strategic buyers have acquired assets at sizable premiums to their carrying values, serve to demonstrate the quality of the assets HgT holds. However, over the course of the year, the positive effect of continued strong trading performance and the aforementioned uplifts on exits on HgT's NAV per share was significantly affected by the reduction in the valuations of comparable listed companies used to derive the carrying value of the HgT portfolio. Despite these significant headwinds, the HgT NAV per share increased by 4.0% over the year, while the share price decreased by 4.9% over the same period."

David Toms, Head of Research at Hg, commented:

"The core attraction of this sector remains the ability to deliver sustainable earnings growth through a variety of market environments and against volatile macro-economic backdrops. In addition, AI materially expands the opportunity set and we see encouraging early momentum in our businesses. Beyond this, for the portfolio, M&A remains a key driver of outperformance."

SUMMARY performance

Source: Hg, Factset. All references to total return allow for all historic dividends being reinvested Note: Hg undertakes full revaluations of the portfolio on a quarterly basis, the next process being 31 March 2026, therefore the movement in unrealised value of the portfolio to the end of February 2026 is predominantly attributable to FX.

Performance overview

Net assets of £2.6 billion, with continued long-term outperformance of the FTSE All-Share over five, ten and twenty-year periods:

- NAV per share of £5.62p, a total annual return of +4.0% to 31 December 2025.

- Share price total return of -4.9% over the year.

- Proposed final dividend of 3.0p per share (full year dividend of 5.0p per share).

Strong double-digit growth from the portfolio:

- Revenue and EBITDA growth of 17% and 19% respectively across the investments over the last twelve months, EBITDA margins of 33%.

- Valuation multiple (EV/EBITDA) of 25.2x and net debt to EBITDA ratio of 7.4x for the overall portfolio.

Continued portfolio activity to drive future value:

- £215 million of gross realisations.

- Full and partial exits during the year were achieved at an average of 25% above their last reported carrying value.

- Continued investment with £357 million invested on behalf of HgT into companies that Hg (the Manager) has known for many years and have demonstrated a track record of strong performance across market cycles.

POST PERIOD TO 28 FEBRUARY 2026

Performance

§ Pro forma NAV per share of 560.9p.*

§ Pro forma Net assets of £2.6 billion.

§ Share price of 398.0p, performance of -21.5% since 31 December 2025.

*NAV per share is calculated based on shares in issue less shares repurchased and held in treasury as part of the recent share buyback programme.

Jim Strang, Chairman of HgT, commented:

"Public market volatility increased sharply through the first quarter of 2026, especially in the software sector, sparked by investor concerns about the potential impact of AI on the software industry, coupled with a rotation of capital out of software and into hardware companies. The recent material sell-off in listed software shares and associated volatility has also had a pronounced negative impact on HgT's share price, which is down 21.1% period to date at 6 March 2026.

The recent widespread sell-off seen in the software sector has seen little distinction made across the many different players in the space and their respective strengths and weaknesses. While conditions remain challenging, recent transaction activity at HgT, validates the quality of the assets HgT owns and the manner in which they are valued, both by HgT and the buyer universe and should be of considerable comfort. Given HgT's deep knowledge and relevant investment experience combined with its focus to invest to develop the next generation of market leading technology companies, while uncertainty is likely to prevail for the foreseeable future, longer term prospects remain attractive."

Realisations and investments

§ Estimated £93 million realised post December 2025, primarily from the full exit of Intelerad and the partial exit of Septeo. These transactions are expected to complete in March 2026.

§ £139 million invested by HgT into Onestream and Septeo including £46 million in fee-free co-investment. Post-completion, co-investments will represent an estimated 12% of NAV, increasing from 10% at 31 December 2025.

Pro-forma balance sheet

§ Available liquid resources (including the £375 million credit facility, of which £53 million was drawn at the end of February) post-completion of all announced transactions and the full year dividend payable in May 2026, are £374 million (15% of 28 February pro-forma NAV).

§ Outstanding commitments of £2.1 billion (83% of 28 February pro-forma NAV) which are expected to be called over the next 4 to 5 years.

Outlook

Commentary from Hg (the Manager):

The combination of the long-term nature of listed private equity investment, and the structural tailwinds for the types of growth businesses that Hg invests in, is expected to continue to drive long-term performance

§ The HgT portfolio's strong trading performance is underpinned by the mission-critical nature of products and services provided by portfolio companies

§ Despite the recent volatility in public markets, fundamentals for enterprise software companies remain positive, suggesting that recent market moves are sentiment driven

§ AI agents are anticipated to expand the addressable market for many SaaS incumbents. Hg Catalyst, Hg's AI incubator, is working directly with the portfolio companies to accelerate their AI product development to address this opportunity

§ The recent exits of GTreasury and Intelerad to strategic buyers, and the syndications of OneStream and Septeo demonstrate the continued attractiveness of the Hg portfolio to both strategic and financial buyers

§ We remain excited by the long-term opportunity, as businesses seek to automate more workflows to improve productivity and manage rising labour costs, underpinned by demographic and technology shifts

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 and investors may not get back the amount they originally invested.

- Ends -

HgT's 2025 Annual Report, results presentation and an animated presentation from Hg to accompany the results are available to view at:  http://www.hgcapitaltrust.com/.

For further details:

HgCapital Trust

George Crowe

[email protected]

+44 7774 617 150

Laura Dixon

[email protected]

+44 7824 59 2894

Hg

Tom Eckersley

[email protected]

Sam Ferris

[email protected]

Cadarn

Lucy Clark

[email protected]

+44 (0)7984 184 461

David Harris

[email protected]

+44 (0)7368 883 211

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.

For further details, see www.hgcapitaltrust.com and www.hgcapital.com

HgCapital Trust plc

Annual Report and Accounts and Notice of Annual General Meeting

HgCapital Trust plc (the "Company" or "HgT") announces its annual results for the year ended 31 December 2025 and the publication of its annual report and accounts for the same period, which includes the notice of Annual General Meeting.

The objective of HgCapital Trust ('HgT') is to provide shareholders with consistent long-term returns in excess of the FTSE All-Share Index by investing predominantly in unquoted companies where value can be created through strategic and operational change.

FINANCIAL AND PERFORMANCE HIGHLIGHTS

2025 performance at a glance

4.0%

NAV per share (561.5p) 31 December 2024: +10.4%

£2.6bn

Net assets

31 December 2024: £2.5bn

-4.9%

Share price (507.0p)

31 December 2024: +25.7%

£2.3bn

Market capitalisation

31 December 2024: £2.5bn

5.0p

Full year dividend

31 December 2024: 5.5p

1.5%

Total ongoing charges

31 December 2024: 1.4%

£357m

Invested on behalf of HgT 31 December 2024: £606m

£215m

Realisations to HgT 31 December 2024: £508m

£368m

Available liquid resources (14% of NAV)

31 December 2024: £336m (13% of NAV)

£2.2bn

Outstanding commitments (85% of NAV)*

31 December 2024: £735m (29% of NAV)

Note: NAV per share and share price return on a total return basis assuming all historical dividends have been re-invested, which is an Alternative Performance Measure ('APM'). Please see the definitions of the APM's in the glossary pages 121 to 122 of the full Annual Report and Accounts for the year ended 31 December 2025.

*Includes the top-up commitments in Hg Genesis 11 and Hg Mercury 5 which had not previously been reflected in the £1.8 billion outstanding commitments reported in the Trading Update on 6th February 2026.

The investment portfolio

A snapshot as at 31 December 2025

+17%

LTM sales growth

31 December 2024: +19%

+19%

LTM EBITDA growth

31 December 2024: +23%

33%

EBITDA margin

31 December 2024: 34%

25.2x

EV to EBITDA multiple

31 December 2024: 26.1x

7.4x

Net debt to EBITDA ratio

31 December 2024: 7.4x

The portfolio composition changes as a result of investment and realisation activity, which may mean prior period metrics are not directly comparable.

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 and investors may not get back the amount they originally invested. Figures are based on all investments as at the balance sheet date and basis of calculation can therefore change year on year.

CHAIRMAN'S STATEMENT

Against the challenging macro-environment backdrop, companies within the HgT portfolio continued to report strong and consistent underlying trading performance, with LTM sales growing at 17% and EBITDA growing at 19% respectively, with EBITDA margins of 33%, figures which compare favourably with peer businesses. This performance reflects the mission-critical nature of the software and technology-enabled services in which Hg invests, where embedded workflows, deep domain knowledge and recurring revenue models continue to support resilient demand even during periods of technological and market transition. The positive effect of this trading performance and uplifts on exit on HgT's NAV per share was significantly affected by the reduction in the valuations of comparable listed companies used to derive the carrying value of the HgT portfolio. Despite these significant headwinds, the HgT NAV per share increased by 4.0% over the year, while the share price decreased by 4.9% over the same period.

Jim Strang, Chairman, HgT

Despite the challenging market conditions, 2025 remained an active period for new investments and realisations. This was accompanied by strong underlying trading performance across the existing portfolio as individual assets leveraged their market positions and technology leadership. Overall, the markets for private equity transactions gradually improved over the year and notably post Q1, as uncertainty from 'Liberation Day' in the USA abated. At the year end, the aggregate activity levels in private markets in 2025 were in fact the second highest ever recorded, only bettered by 20211.

1 source: Global Private Equity Report 2026, Bain & Company

Key highlights for 2025 included:

?  NAV per share total return was 4.0% over the year, and as a result, at 31 December 2025 stood at £5.62 with net assets of £2.6 billion

?  The share price total return showed a decrease of 4.9% over 2025 at £5.07; market capitalisation at the year-end was £2.3 billion

?  Strong underlying performance from the portfolio with LTM revenue and EBITDA growth of 17% and 19% and margins of 33% for the overall portfolio; in line with prior year figures

?  Investments of £357 million made over the year and realisation proceeds of £215 million generated

?  Realisations in 2025 included GTreasury at an uplift of 97% to book value, overall, exits over the year added 4.6 pence to the NAV

?  In November, HgT announced the exit of Intelerad (due to complete in March 2026). The transaction price reflected an uplift of 62% to its last reported carrying value

?  At year-end, HgT had available liquid resources of £368 million (including a £375 million credit facility, of which £36 million was drawn as at 31 December 2025)

?  Realisations over 2025 saw an average uplift to book value of 25%

?  Outstanding commitments to Hg funds totalling £2.2 billion (85% of NAV) which are expected to be called over the next four to five years

The portfolio delivered strong growth in sales and profitability with LTM sales growth of 17% and EBITDA growth of 19% respectively. The EBITDA margin across the portfolio averaged 33%. Hg continues to refine and enhance not only its investment capability but also its in-house value creation skills to support these portfolio companies in reaching their ambitious growth targets and achieving their full potential. Within the aggregate investment and other professional executives team which now number more than 250, Hg has more than 60 full time members in its value creation group working collaboratively with portfolio company management teams.

It goes without saying that AI remains an area of absolute focus for Hg and the portfolio with very significant investments made in resources to support new investment selection and value creation across the portfolio. The impressive efforts Hg has made on this front not only reflects its own efforts but also from the multiple partnerships entered into with the likes of Anthropic (Claude), Replit, Cognition Labs (Devin and now Windsurf), Forethought and Intercom, this network continues to grow.

Driving AI transformation: see below or page 13 of the full Annual Report and Accounts

Building on the efforts underway since 2019, Hg has added Hg Catalyst, a dedicated AI incubator designed to accelerate AI product innovation across Hg's portfolio. Operating from newly created European and North American hubs in London and New York, Catalyst brings a scaled capacity of over 80 AI engineers, product managers, and designers who work directly within portfolio companies to build enterprise-ready AI products that demonstrate real customer value.

Hg's focus on AI and build-out of expertise has been recognised and rewarded in the recent fundraising cycle with significant new capital committed to Hg by a large pool of global investors, with Hg's share of all European buyout capital raising approaching 30% of the total for 2025.

Performance

The NAV of HgT saw an increase over the full year, delivering a 4% uplift over 2025 on a total return basis. The positive contribution from the underlying portfolio included strong trading (+19%) and exits which was offset by a contraction in multiples from companies in the HgT valuation basket and modest increases in net debt used to accelerate portfolio growth.

While trading remains the key driver of performance over the long-term, movements in comparable valuation multiples can impact performance over shorter-term periods, and this was the case during 2025. Elevated public market volatility saw multiples used to value HgT's portfolio companies contract, reducing portfolio valuations by 8% over the reporting period. In addition, increases in net leverage, deployed to support future growth, further reduced valuations by 6%. Further investments to finance bolt-on M&A are an area which Hg has highlighted as being particularly attractive in the current environment and where the sector-leading businesses across the portfolio can improve their relative market positions, product and service offering. 

On a long-term basis, HgT has seen a share price CAGR on a total return basis of 18.9% p.a. over the past 10 years, outperforming the FTSE All Share index by 10.5% p.a.

Total net assets of HgT at 31 December 2025 were £2.6 billion. An analysis of NAV movements and movement within the underlying portfolio is set out on pages 40 and 41 of the full Annual Report and Accounts.

At the end of December 2025, the HgT portfolio comprised a total of 61 investments, all of which focus on mission-critical B2B vertical software and technology-enabled service companies. The portfolio has continued to perform strongly, delivering revenue and EBITDA growth of 17% and 19% respectively over the last 12 months. This performance reflects the defensive growth and recurring revenue characteristics of businesses whose products sit at the core of customer workflows and deep domain expertise, and which benefit from high switching costs and long-term contractual relationships.

Profitability continues to be strong with an average EBITDA margin of 33% across the portfolio. These businesses typically exhibit highly predictable forward cash flows and are appropriately financed (on an individual basis), including significant debt covenant flexibility around their financial structures. The average ratio of net debt to EBITDA across the portfolio at the end of the period was 7.4x (December 2024: 7.4x), while the average valuation multiple for the portfolio was 25.2x EV-to-EBITDA (December 2024: 26.1x), which implies that debt accounts for less than 30% of the average portfolio company capital structure. This allows for a significant equity cushion within the portfolio, reflecting the thoughtful approach to leverage, and is consistent with similar peer companies in the market. Notably, Hg has a dedicated debt capital markets team which continually monitors and manages the capital structures of the underlying portfolio companies to ensure they are as robust and flexible as possible in terms of tenor, interest cost and maturity.

As regards dividends, HgT aims to achieve long-term growth in the net asset value per share and in the share price, rather than to deliver a specific dividend yield, with the dividend primarily determined by the level of income from the underlying portfolio, which can vary over time. As regards 2025, the Board of HgT has declared a final dividend of 3.0 pence per share (December 2024: 3.5 pence per share), payable in May; this, in conjunction with the interim dividend of 2.0 pence reflects the 5.0 pence floor.

Dividend: see page 118 of the full Annual Report and Accounts

Dividend re?investment plan: page 118 of the full Annual Report and Accounts

Investments

HgT invested £357 million in 2025 with new and follow-on investments primarily in IFS, P&I, A-LIGN, Citation, Payworks, Diamant Software and Scopevisio, including £34 million of co-investment (on which HgT does not pay management fees or carried interest). Co-investments now represent c. 10% of NAV, increasing from 9% at the start of 2025, in line with HgT's long-term goal of 10-15%.

HgT continues to increase its exposure to co-investments, with further expected over the next twelve months. Increasing the allocation to co-investments allows HgT to utilise more fully its available liquid resources, to improve returns and to reduce overall fees.

On 6 January 2026, HgT announced that it would invest £93m in OneStream, investing alongside other institutional investors via the Hg Saturn 4 fund. Hg has subsequently completed the over-subscribed syndication of $1.5bn of OneStream equity alongside the Saturn 4 fund. As part of the syndication, HgT will invest an additional $9 million (£7 million) in OneStream as a co-investor, increasing its aggregate investment in OneStream to £100 million. In a separate transaction, Hg has also signed the partial sell-down of over ?50 million of equity in Septeo Group at the 31 December 2025 valuation to a group of institutional investors. As part of this transaction, HgT has taken the opportunity to convert c.?45 million (£39 million) of its existing NAV exposure in Septeo via the Hg Genesis 9 fund into fee-free co-investment, by co-investing in a structure alongside the new investors coming into the business.

Realisations

Despite the challenging market conditions, HgT delivered eight liquidity events. These included the sales of Trackunit, smartTrade and GTreasury. In aggregate, HgT saw £215 million in realisations from the underlying portfolio, representing 9% of opening net assets. This continues a track record of strong realisation activity, which has generated liquidity of 23% of opening net assets on average for the preceding five financial years.

Realisations over 2025 saw an average uplift to book value of 25%, including the sale of GTreasury at an uplift to carrying value of 97%, this highlights the attractiveness to strategic buyers, of the mission-critical companies in which the Manager continues to invest.

Similarly, post-period saw the full realisation of Intelerad, announced in November 2025, returning £52 million to HgT at an uplift of c. 62% to its carrying value. In February, Hg agreed the partial sale of Septeo, a leading provider of mission-critical software for regulated verticals based in France, returning £41 million to HgT. These transactions are expected to complete in Q1 2026.

Valuations remain an area of continued focus for the HgT Audit Valuation and Risk Committee ('AVRC'), with a long-term record of exits above carrying values. This realisation activity continues to distinguish Hg in a market environment where generating liquidity remains challenging. Hg's recent record of delivering more than £12 billion of total realisation proceeds to its investors (including HgT) over the last two years highlights the fundamental strengths and attractiveness of the underlying portfolio to both trade and financial buyers.

For further detail on portfolio transaction activity: see pages 46 to 49 of the full Annual Report and Accounts

Fundraising

In line with HgT's long-term investment model, a number of new commitments were made in the period to the next series of funds being raised by Hg. Hg continues to demonstrate a disciplined approach to fundraising, matching their desired fund size targets to the deal opportunities they are tracking. Shareholders will recall from my previous communications that HgT made a series of initial commitments to Hg's three latest funds in the first half of the year. In the second half the programme of commitments to the current vintage of funds was agreed, consistent with Hg's long-term approach to commitment pacing. In that process HgT increased its exposure to the Hg Genesis 11 and Hg Mercury 5 funds to ?700 million and ?300 million respectively, in line with original plans. Additionally, in February HgT completed a reduction in its commitment to the Hg Saturn 4 fund from $1 billion to $900 million. This tactical adjustment modestly reduces the sizing of individual cash flows associated with investments made by that fund and allows HgT to be more active in co-investments situations alongside the Hg Saturn 4 fund where co-invest opportunities are expected to be greatest. HgT has, for example, participated post-period in the co-investment opportunity in OneStream which Hg announced in January 2026.

Commitments: see page 44 of the full Annual Report and Accounts

All new fund commitments benefit from a subscription facility, meaning that HgT can take advantage of the same delayed drawdowns as other institutional investors in the funds, as is normal market practice. Consequently, Hg Saturn 4 will commence cash drawdowns from 2026 while we anticipate the first capital calls for Hg Genesis 11 and Hg Mercury 5 in 2027. As with previous vintages, HgT maintains its specific 'opt-out' right on these new fund commitments (see Balance sheet section below).

As previously indicated, committing to Hg's future funds is the single greatest lever HgT has to support the long-term growth in NAV. Participating in this latest fundraising process will continue to underpin HgT's long?term growth, while sizing these commitments appropriately. HgT continues to participate in the current vintage as Hg's largest single client.

Hg funds: see pages 32 and 33 of the full Annual Report and Accounts

Capital Allocation

As part of the Board of HgT's commitment to shareholders, our primary objective is to maximise investment returns through a disciplined approach to the allocation of available liquid resources. This incorporates the ongoing monitoring by the Board, working with the Manager, forecast cash flows and estimated returns. As I have stated in past reports, the Board continually seeks ways to improve the effectiveness of governance. As part of this process, much attention has been devoted to the topic of capital allocation, including listening to shareholder feedback. The approach, framework and tools adopted are set out below.

Investments

At the core of the capital allocation policy is the imperative to drive compelling investment returns for shareholders. HgT has delivered strong shareholder returns to investors over a period of more than two decades, a fact highlighted by the Association of Investment Companies ('AIC').

The Board seeks to maintain this impressive track record by continuing to access the repeatable returns delivered by the Hg investment platform over the long term. HgT's commitments to Hg funds ensure that HgT maintains exposure to Hg's deal flow, which is the single biggest driver of investment opportunities with the potential to generate long-term returns. As such, the priority of the Board is to ensure that HgT is well positioned to access these returns, at acceptable levels of risk. This includes taking up co-investment opportunities (free of management fees and performance fees), in what remains an attractive investment environment.

Buybacks

From time to time, market conditions can create divergence between the share price of HgT and its net asset value. The Board, the Manager and HgT's broker monitor such divergence closely, following a clearly defined share buyback framework. The Board has developed a process with a number of 'triggers' set by absolute and relative levels of share price discount over various time periods. Where two or more such 'triggers' are activated, the Board formally considers the appropriateness of buying back shares, giving due regard to the relative merits and opportunity costs of doing so on long-term NAV growth. In doing so, the Board remains mindful that periods of share price volatility can coincide with attractive investment opportunities within the portfolio and therefore seeks to balance short-term discount management with the long-term objective of compounding NAV for shareholders.

Dividends

Dividends payable by HgT are in part determined by the levels of income that are generated by the underlying assets of the portfolio. As deal structures used by Hg have evolved, the level of income generated has trended lower in recent years, albeit it can easily vary from one year to the next. In this context, the Board has in recent years guided shareholders that 5.0 pence per share is a reasonable basis for a dividend 'floor'.

Business Model - Dividends: see page 16 of the full Annual Report and Accounts

Shareholder information - Dividends: see page 118 of the full Annual Report and Accounts

Debt facility

The final element of the capital allocation policy relates to the use of leverage. HgT maintains a Revolving Credit Facility of £375 million (c.15% of net assets) to support the implementation of the investment strategy.

Balance sheet

A key role of the Board is to balance considerations of HgT's future commitments to Hg funds, balance sheet and cash position, while maintaining a clear focus on risk. This is a continuous cycle of activity which has to adapt to unpredictable events. HgT has invested in upgrading the systems used to manage this process, aligning them with similar tools that Hg uses to manage its own cash-flow forecasting. As a result, the Board benefits from the ability to assess the various scenarios with a greater degree of granularity which should enhance the quality of decision making.

As one of the tools used to manage the balance sheet, HgT has a revolving credit facility to support the investment programme and to improve balance sheet efficiency.

As a reminder, HgT benefits from an 'opt-out' clause within its underlying investment agreements with Hg (please refer to business model on page 16 of the full Annual Report and Accounts for the year ended 31 December 2025 for further details), which provides a useful risk management tool as the Board seeks to manage and optimise the HgT balance sheet.

Impact and sustainability

The Board and the Manager, Hg, continue to increase their focus on using sustainability as a value creation tool. We share a firmly held view that not only should the financial returns to shareholders be attractive but they must be delivered in a manner which is consistent with our responsibility to society. As a technology investor, the Board understands the need to ensure that those businesses in which we invest reduce their carbon footprint and contribute to tackling climate change.

The UN Principles for Responsible Investment (UNPRI) assessment of Hg's approach to responsible investment is 5* (94%) for policies and stewardship and 5* (97%) for Private Equity, and the Board of HgT meets regularly with the Hg Responsible Investment team to ensure that Hg's work is well understood and endorsed by the Board. As we have previously reported, Hg launched The Hg Foundation in 2020 - a charitable enterprise which provides funding and operational support to initiatives across Europe, the UK and the US. The Hg Foundation's goal is to have an impact on the development of those skills and learning most required for employment within the technology industry, focusing on individuals who might otherwise experience barriers to access this education. The Foundation is funded by the Hg management company and its team members.

Sustainability: see page 36 of Hg's review of the full Annual Report and Accounts

The Hg Foundation: see page 37 of Hg's review of the full Annual Report and Accounts

Reporting and Transparency

The Board continues to look at ways to increase the effectiveness of communications for shareholders. As part of this initiative, HgT has provided trading updates since 2024 post period ends, giving our shareholders earlier guidance on the performance of HgT ahead of the full year and interim results, but after review by the HgT Audit Valuation and Risk Committee ('AVRC') and approval by the HgT Board.

HgT has also engaged with third-party marketing specialists to increase the scope and reach of its marketing activities in the UK and overseas, where regulations permit.

The HgT website and social media presence are frequently reviewed in order to continue to improve our dissemination of information to all shareholders and there are additional initiatives in progress to increase further shareholder engagement.

Hgcapitaltrust.com

Board and governance

In late 2024 we commenced the process to find a new Non?Executive Director, and an external search firm was engaged to support the Nomination Committee and the Board in delivering a successful outcome, noting the skills and experience which would be most additive to HgT.

We were pleased to announce in July the appointment of Graham Paterson to the Board. Graham is an experienced investment professional with over 25 years' experience in private equity and as a chartered accountant, brings a unique combination of skills and personal strengths that are highly complementary to HgT now, and as we continue to execute our strategy of investing in a portfolio of high-growth private companies in the software and services sector. On appointment to HgT, he joined the AVRC, the Nomination Committee and the Management Engagement Committee. Subject to his election at the Company's 2026 Annual General Meeting ('AGM') on 7 May 2026, Graham will take on the role of HgT's Chairman of the AVRC, at the conclusion of that AGM.

Concurrent with Graham's election at the AGM, Richard Brooman, the current Chairman of the AVRC, will retire from the Board after serving HgT for 18 years. Richard's contribution to the success of HgT has been immense. Over his tenure, the market capitalisation has grown from £239 million to £2.3 billion. This very visible sign of the success he helped steward does not speak to the countless ways he has worked tirelessly for the benefit of HgT and to support his colleagues on the Board. His Board colleagues have all benefited from this wisdom, calmness and thoughtful advice over many years. On behalf of all the HgT stakeholders I would like to extend my deepest thanks to Richard for his many years of service to HgT.

Nomination Committee report see page 108 of the governance section of the full Annual Report and Accounts

Recent volatility in public market software companies

As the Board stated in the trading update released on 6 February, public market volatility increased sharply through the first quarter of 2026, especially in the software sector, sparked by investor concerns about the potential impact of AI on the software industry, coupled with a rotation of capital out of software and into hardware (chips, memory and data-centre build-out).

The recent material sell-off in listed software shares and associated volatility has also had a pronounced negative impact on HgT's share price, which is down 21.1% period to date at 6 March 2026. The recent widespread sell-off seen in the sector has been with little distinction made across the many different players in the space and their respective strengths and weaknesses.

Given the scale of the recent dislocation between the share price and the value placed on the assets within the HgT portfolio, the Board considered a number of potential actions to address the discount to net asset value and the full set of tools at its disposal. Following the HgT trading update announced in February, the Board disclosed to shareholders that it had initiated a buyback programme, following the well-established processes HgT has developed to manage such situations. The Board is in constant dialogue with the Manager and its advisers around what proactive steps may be taken to mitigate these situations.

While public market multiples (both software and tech-enabled services; US and Europe) are one input to Hg's valuation methodology, relevant private M&A comparables ('comps') form a material input for valuations, reflecting Hg's model of acquiring full or effective control of the companies within the portfolio. The weightings of these comps for each individual business means the valuation multiples are linked to, but do not fully track, movements in the public markets. Very broadly and depending on the mix of comparables and their relative movements, we see typically 20-40% of the movement in public comparables flow through to the multiples used to value our portfolio companies.

The multiples derived from these relevant public and private comps are then applied to the earnings of the portfolio companies, which remain the key driver of valuations and long-term performance. The HgT portfolio businesses have typically grown their EBITDA by 10-15% organically each year, i.e. c. 3% each quarter. In addition, the impact of M&A activity may increase levels of growth in a given period.

Despite the recent volatility and seemingly indiscriminate negative sentiment in public markets, HgT's portfolio companies continue to deliver resilient and profitable organic growth consistent with a "rule of 40" portfolio, while balance sheets remain robust across the portfolio. Notably, Hg's significant investment in its own AI initiatives is rapidly building momentum and is now driving increased value creation across the portfolio. Furthermore, Hg has a strong track record of generating realisations at premia to carrying value, including during periods of heightened market volatility, with the significant majority of exits taking place in the private markets.

Hg's view remains that AI presents significant opportunities for innovative, product-led, incumbent software companies. Hg has been investing in software for more than two decades and today we are investors and board members in >60 privately-owned software and services businesses, providing us with granular insight into the interactions between SaaS businesses and their customers, informing our view on how AI will diffuse into the real economy.

In his recent essay, Matthew Brockman, Hg's Chief Investment Officer, shares his perspectives on how AI is reshaping software, the opportunity this presents for incumbents and how Hg is working closely with its portfolio companies as they transition to be AI-first businesses:

hgcapital.com/insights

Prospects

Risk across the global economy and geopolitical environment remained elevated throughout 2025 and in early 2026, and notably, in recent weeks, with the latest conflict in the Middle East. In response, the Board has maintained a strong focus on disciplined risk management and scenario planning. While geopolitical developments, cyber risk, foreign-exchange volatility, public-market valuation movements and evolving sentiment toward artificial intelligence are expected to persist in the near term, the underlying performance of the HgT portfolio has remained resilient. Continued organic growth, strong profitability and highly recurring revenues provide a robust foundation for long-term net asset value growth and sustainable shareholder returns.

HgT continues to benefit from the quality and consistency of the Hg investment platform. Its repeatable strategy in mission-critical B2B software and technology-enabled services, together with deep operational value-creation capabilities and accelerating AI adoption across the portfolio, supports sustained earnings growth, attractive investment opportunities and ongoing realisation activity. Although short-term valuations may fluctuate with market conditions, the Board believes long-term performance will be driven principally by earnings growth and disciplined capital allocation.

Accordingly, notwithstanding continued macroeconomic and market uncertainty, the Board remains positive about HgT's long-term outlook. Strong portfolio trading, continued access to Hg's investment opportunities and a consistent focus on value creation position HgT well to deliver attractive and sustainable returns for shareholders over time.

Jim StrangChairman6 March 2026

Driving AI transformation

20 AI and data in-house specialists

>1,600 GenAI projects live across the portfolio

>100 AI product builds

AI dramatically expands the remit of software. It is a massive expansion of the value pool from the $1tn software market, into the $50tn human labour market.

David Toms, Head of Research, Hg

'Six possible things before breakfast' see p38 of the full Annual Report and Accounts

AI represents one of the most significant technological shifts in recent times. The speed and manner in which software is developed, and the capabilities of agentic AI, are advancing rapidly. Hg was one of the first private equity managers to understand the value of building an AI-focused in-house team as part of their portfolio operations.

'Everything, everywhere, but not all at once' see p38 of the full Annual Report and Accounts

A year ago, conversations about AI in enterprise software centred on co-pilots and personal productivity - promising tools that could make individuals faster. This year, the tone is different. The technology has crossed an invisible line. We are no longer talking about AI assistance; we are talking about fundamentally different operating models that put agents at the core. The gap between early movers and everyone else is widening faster than anyone anticipated.

'Silicon Valley Leadership Summit 2026' see p38 of the full Annual Report and Accounts

We are working with many of our forward-looking portfolio companies on two fronts - product and operations - to help them 're-found' themselves and become AI-first

Matthew Brockman, CIO, Hg

GTreasury, the treasury solutions platform acquired by Ripple last year, is a good example of our Hg Catalyst team working closely with a portfolio company to develop AI. Below, we provide a case study of GTreasury.

GTreasury - Case Study

£30m HgT proceeds

97% uplift to book value

$1bn enterprise value

1Includes co-investors.

Please note all figures related to HgT's share in GTreasury

Founded in 1986 and headquartered in Chicago, Illinois, GTreasury is a leading provider of Treasury Management Software solutions to mid-sized enterprise clients globally, servicing over 1,000 customers across 30 industries and 160 countries.

Having tracked the company for more than five years prior to investing, Hg had a thesis around mid-market, cash and treasury management software as part of a secular trend. A focused value creation plan including a full go-to-market transformation and continued product innovation helped Hg to accelerate GTreasury's growth.

The Hg Catalyst team worked with GTreasury to launch GSmart AI, a new agentic product built on top of decades of data and deep domain knowledge. GSmart proactively identifies risks and variances and recommends strategic actions for finance leaders. Previously these were tasks that a human would do after exporting and analysing data from the platform. Now it's all done by agentic AI software - and customers love it.

Hg completed the sale of GTreasury in December 2025 to a US-based strategic buyer, Ripple at a 97% uplift to carrying value, in Hg's first AI-driven exit.

Hg Catalyst

Hg Catalyst is our AI product incubator. It deploys small, senior teams to sit inside portfolio companies and accelerate AI product builds. The focus is on defining narrow workflows with clear success metrics, fast release cycles, and reuse of patterns so each new build is quicker and safer than the last. We operate across the portfolio with a scaled capacity of 80+ engineers, product managers, and designers. This also means a breakthrough in one business can be rolled across the rest of the portfolio in weeks, not quarters.

MANAGER'S UPDATE

We are already selling AI-first applications to customers across many businesses in the portfolio? they look to trusted, existing providers able to provide integrated new capabilities into established applications, seamlessly linked to years or decades of proprietary data and workflows. Our current budgets show a significant EBITDA benefit from AI initiatives.

David Toms, Head of Research, Hg

At the start of the fourth quarter of 2025, software sector performance in the public markets (based on the IGV ETF1 that we use as a proxy for the sector) was looking relatively unexciting on a year-to-date basis. The quarterly gyrations smoothed out to leave the sector multiple flat for the year, with earnings showing typical mid-teens growth. By the end of Q4, this dynamic had shifted - not due to changes in forecasts, but because sentiment, and therefore multiples, moved to a more negative position, a shift that has continued into 2026.

1 iShares Expanded Tech-Software Sector ETF

Focussing first on sector trading, our analysis shows that growth rate expectations for the sector, which have been on a modest but consistent negative trend for around three years, stabilised in Q3 and showed slight improvement in Q4. Indeed, were it not for the shift in sentiment, the tone for 2026 might be erring towards the upbeat. 2026 revenue growth expectations are aligned with the 2025 performance, rather than requiring any acceleration, and the potential for AI-led efficiency gains and addressable market expansion could give room for outperformance in the second half of 2026.

Despite this, sentiment (expressed via multiples) has taken an aggressively negative stance. Public markets seem to have concluded that although AI will dramatically expand the range of opportunities that can be addressed by software, none of this TAM expansion will be available to incumbent software companies and instead their existing positions will be eroded. We should be very clear that this is at odds with the evidence we currently see in our portfolio, where our current budgets show a significant EBITDA benefit from AI initiatives. We are already selling AI-first applications to customers across many businesses in the portfolio - typically (though not exclusively) small businesses who, as always, desire minimal friction when it comes to software implementation. They look to trusted, existing providers able to provide integrated new capabilities into established applications, seamlessly linked to years or decades of proprietary data and workflows that customers already understand.

For more insights on this topic please visit hgcapital.com/insights

As we have previously indicated, in any quarter, there are two main factors influencing our valuations:

One, valuation change in public comparators, of which we, very broadly, see 20-40% of the impact in any one quarter. Our valuation model is driven partly by such inputs, but also by less volatile, longer-term M&A comparables in the public and private markets.

Our multiples are generally directionally similar to US public software indices, albeit more muted (in both directions). However, at times there can be modest divergence, generally reflecting the precise mix of comps that we use and the relative weightings of those.

Secondly, growth in earnings. Our companies have typically grown their EBITDA by 10-15% organically each year, i.e. c. 3% each quarter, and approximately double this on an 'all in' basis including M&A.

The relative pace of both movements (rating changes can be relatively rapid; earnings growth tends to be much steadier) dictates movements in any one quarter, but over time, earnings growth tends to dominate.

Abrupt movements in public market valuations can create opportunities for us to exploit what we see as material mispricing opportunities, and we continue to look to capitalise on these through P2P transactions.

Luke Finch, Head of Client Services, Hg

Hg activity over 2025

c.£4.5bn invested

>£2.0bn returned

Outlook

Looking ahead to the rest of 2026 - public markets are now valuing software companies broadly in line with the overall market, i.e. the long-term c. 50% premium that software has attracted, has faded. This is in spite of sustained superior growth, margins and cash flows. Private markets do not reprice in the same way - we saw similar trends in public markets in 2022, yet throughout that period we continued to generate liquidity from our portfolio at a premium to our holding values, and at a very material premium to public peers. However, should current public market multiples persist, this is likely to cause a further headwind to our own valuation multiples in future periods, as private markets absorb an element of the public market movements. The flipside of this is that abrupt movements in public market valuations can create opportunities for us to exploit what we see as material mispricing opportunities, and we continue to look to capitalise on these through P2P transactions. Our continued investments in AI capabilities and the expansion of our serial chair program position us well to capture the significant opportunities ahead, particularly as agentic AI moves from potential to productivity, in products that are offered to customers across our portfolio.

Following the de-rating in listed software companies, we do not believe that public markets currently ascribe sufficient value to the types of mission-critical B2B software businesses in Hg's core clusters. From an investment perspective this creates opportunities. We recently agreed a take-private transaction for OneStream, a US financial software provider, at an attractive valuation for a business with strong growth and a significant margin opportunity. Correspondingly, the public markets currently represent a less attractive route for exits, with sales to strategics and financial sponsors anticipated to remain the primary exit routes in this environment.

In the longer term, we expect the market to differentiate those workflow applications that possess domain-specific data, context, and customer trust. Many such applications will retain their own customer relationships and provide agentic capabilities to their customers, materially enhancing their value. Another revenue opportunity is to provide deterministic capabilities as "tool calls" to other AI applications, and in turn to leverage those applications to broaden their own capabilities - taking up the slack for what is, demographically, a shrinking human labour pool. Development and commercialisation of such capabilities has been underway within our portfolio for over two years now, with examples such as Access's AI-powered payroll and IFS's partnership with Anthropic:

peoplehr.com/en-gb/evo/ai-powered-payroll

ifs.com/en/insights/news/ifs-partners-with-anthropic

OVERVIEW OF THE UNDERLYING PORTFOLIO

held through HgT's limited partnerships

1 Where re-investment has occurred the investment date is based on the closing of the largest tranche of the investment holding.

2 Including accrued income of £106.1 million. Note that this is summary of the underlying investments held indirectly by HgT at fair value within the fund limited partnerships. Please refer to page 70 of the full Annual Report and Accounts for a reconciliation to the fair value of the funds held directly by HgT.

DIVIDEND

The final dividend proposed in respect of the year ended 31 December 2025 is 3.0 pence per share (following the interim dividend of 2.0 pence, bringing the full year dividend to 5.0 pence per share).

NOTICE OF ANNUAL GENERAL MEETING

The Annual General Meeting of the Company will be held on Thursday, 7 May 2026 at 11.00 am at the Hilton London Tower Bridge, 5 More London Place, Tooley Street, London, SE1 2BY. The formal Notice of AGM can be found within the Annual Report. The Board is of the opinion that the passing of all resolutions being put to the AGM would be in the best interests of HgT and its shareholders. The Directors therefore recommend that shareholders vote in favour of all resolutions as set out in the Notice of Meeting (pages 123 to 128 of the Annual Report available on HgT's website) as they intend to do in respect of their own shareholdings.

FURTHER INFORMATION

HgT's Annual Report and Accounts for the year ended 31 December 2025 (which includes the Notice of Meeting for the Company's AGM) will be available today on www.hgcapitaltrust.com. It will also be submitted shortly in full unedited text to the Financial Conduct Authority's National Storage Mechanism and will be available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules. Printed copies of this document will be sent to shareholders in due course.

The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 31 December 2024 or 2025 but is derived from those accounts. Statutory accounts for 2024 have been delivered to the Registrar of Companies, and those for 2025 will be delivered in due course. The text of the Auditors' report can be found in the Company's full Annual Report and Accounts at www.hgcapitaltrust.com

ENDS

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.