HgCapital Trust PLC

16 November 2022

London, UK, 16 November 2022

Edison issues update on HgCapital Trust (HGT)

HgCapital Trust (HGT) posted a 2.3% increase in NAV per share total return (TR) in Q322, as positive earnings growth across the portfolio over the last 12 months (LTM) again outweighed multiple contraction. Despite the latter, the average EV/LTM EBITDA across HGT's top 20 holdings stands at 28.8x vs 27.4x at end-2021 (see our previous note for a discussion on HGT's valuations). The weaker global economy and tightening credit conditions weigh on both HGT's near-term portfolio performance outlook and private equity deal activity. Still, the secular digitalisation trend remains intact with, as Gartner forecasted in October 2022, growth in global software and IT services spending of 11.3% and 7.9% in 2023, respectively. HGT's shares trade at a 18% discount to NAV, while they traded close to NAV in 2021.

HGT closed GBP221m of new investments in Q322 (mostly related to IFS/Workwave and Ideagen). A further GBP231m was invested post period-end, though we note that most of it is the refinancing of Access (see our previous note for details) completed in October 2022, which overall resulted in net realisation proceeds (before carried interest) of c GBP84.0m for HGT. We calculate that HGT's net investment from the remaining transactions post end-September 2022 was c GBP66.5m. Except for the GBP9m investment in TrustQuay, a technology provider to the trust, corporate and fund services industry (completed in October 2022), all the other deals were already made public at the time of the H122 results release in September 2022. Meanwhile, HGT also announced the merger of Ideagen and ProcessMAP, two of its portfolio companies, resulting in a combined uplift of 6% to end-August 2022 valuations.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website


About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst +44 (0)20 3077 5720 investmenttrusts@edisongroup.com

Katherine Thompson +44 (0)20 3077 5720 investmenttrusts@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on:

   LinkedIn        www.linkedin.com/company/edison-group-/ 
   Twitter             www.twitter.com/Edison_Inv_Res 
   YouTube       www.youtube.com/edisonitv 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word "Reach" in the source column of the News Explorer pages of London Stock Exchange's website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.



(END) Dow Jones Newswires

November 16, 2022 02:00 ET (07:00 GMT)

Hg Capital (LSE:HGT)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2023 Click aqui para mais gráficos Hg Capital.
Hg Capital (LSE:HGT)
Gráfico Histórico do Ativo
De Mar 2022 até Mar 2023 Click aqui para mais gráficos Hg Capital.