HgCapital Trust plc (5AC)

Overview

Hg Capital Trust plc operates as an investment entity focusing primarily on direct, quoted, and unquoted companies alongside funds of funds investments. Distinguished by its strategy, the company allows for a significant portion of its assets to be allocated towards unlisted investments, setting a cap at 100% of gross assets. A singular investment into an unlisted entity or a closed-ended investment fund, whether directly or indirectly, is restricted to a maximum of 15% of the gross assets. Hg Capital Trust plc has a keen interest in middle-market buyouts, with a preference for sectors such as Technology, TMT, Services, and Industrials Technology, targeting enterprises valued between £80 million and £500 million. The firm extends its investment purview to the lower mid-market segments within the TMT sector, contemplating deals valued between £20 million and £80 million. The geographic focus of these investments largely centers on Europe, particularly Northern Europe, the United Kingdom, Germany, France, the Benelux countries, and the Nordic region, although it remains open to opportunities across Europe.

Products and Services

• Direct Investments

Hg Capital Trust plc specializes in investing in middle-market buyouts across a range of industries including hotels, restaurants, leisure, consumer durables and apparel, services, and renewable energy. The firm's approach is to target companies with potential for significant value creation, offering financial and strategic support to achieve growth. Investments range markedly between £100 million and £500 million, emphasizing the firm's capacity to make substantial commitments towards its portfolio companies.

• Quoted and Unquoted Companies

The firm actively engages in investments within both quoted and unquoted companies, showcasing a flexible investment strategy that adapts to the nuanced needs and potential of each target company. This approach allows Hg Capital Trust to diversify its investment portfolio across different stages of a company's lifecycle, enhancing the potential for risk-adjusted returns.

• Funds of Funds Investments

One notable area of investment involves funds of funds, providing Hg Capital Trust an avenue to indirectly participate in a diverse array of investments managed by third-party entities, including those managed by HgCapital itself. This strategy offers a layer of diversification, spreading risk across a variety of sectors and investment themes within the broader umbrella of the firm's focus areas. It predominantly invests in limited partnership vehicles, preferring those that align with its strategic focus and geographical preference.