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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 £5.50, with total net assets of £2.5 billion. However, the share price fell 2.7% to £4.99 during the quarter, giving the company a market capitalisation of £2.3 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 £7 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 £30 million at a 97% uplift to carrying value. New investments during the quarter totalled £49.7 million, mainly into A-LIGN, a US-based cybersecurity compliance services provider. This was partly offset by £19.7 million of equalisation following the latest closing of the Hg Saturn 4 fund, and an estimated £17 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 £379 million, including a £375 million bank facility of which £46 million was drawn. Commitments to Hg funds stand at £1.7 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. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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