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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 £2.35 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 £383 million proforma liquid resources were available as of June 30, up from £336 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 £165 million from £348 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 $2.0 billion via liquidity events in the year-to-date. New and follow-on investment totalled £306 million during the first half of 2025, down slightly from £310 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 €350 million and €150 million respectively, set to begin in 2026. A $1.0 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 £1.7 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. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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