HgCAPITAL TRUST PLC
QUARTERLY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2026
NAV INCREASES IN Q3 AS CONTINUED STRONG TRADING OFFSETS FURTHER MULTIPLE CONTRACTION
London, 5 November 2026: HgCapital Trust plc (‘HgT’), today announces its results for the three months ended 30 September 2026.
HgT provides investors with a listed vehicle to invest in one of the largest and fastest-growing portfolios of unquoted technology companies in Europe1, 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 +223%, outperforming the FTSE All-Share Index by +104% over this period2.
Performance overview
HgT’s net assets of £2.4 billion at 30 September 2026 represent a Net Asset Value (‘NAV’) per share of 539.1 pence, based on portfolio company valuations at 30 September 2026. NAV total return was 2.0% for the quarter and -3.1% year to date, following -5.4% in Q1 during the peak of the sell-off in public software and 0.5% in Q2.
Continued strong trading across the portfolio added 5% to portfolio value in the quarter and 15% year to date. Movements in the multiples of comparable companies reduced portfolio value by 2% in the quarter (-13% year to date), a materially smaller impact than in the first half of 2026, with the weighted average EV/EBITDA multiple reducing to 22.6x at 30 September 2026, compared with 22.9x at 30 June 2026 and 25.2x at 31 December 2025. An increase in net debt and movements in FX marginally reduced portfolio value in Q3 (-4% year to date).
Key highlights for Q3 2026 include:
HgT’s NAV increased for a second consecutive quarter, with trading adding 5% to portfolio value and more than offsetting a further reduction in valuation ratings (-2%).
● NAV per share of 539.1 pence, with net assets of £2.4 billion
● NAV per share total return2 of 2.0% for Q3 2026 (-3.1% year to date)
● Share price total return2 of 2.5% (-23.0% year to date), with market capitalisation of £1.7 billion
● Discount to NAV of c.28% as at 30 September 2026
● LTM sales and EBITDA growth of 15% and 19% (organic growth of 11% and 17%) respectively for the portfolio, with EBITDA margins of 35%3
● Reduction in weighted portfolio average valuation multiple (EV/EBITDA) from 25.2x at 31 December 2025 to 22.6x3 at 30 September 2026
● Reduction in net debt to EBITDA ratio to 6.7x (31 December 2025: 7.4x)3
● HgT invested £28 million in Q3 2026, including new investments in Street and Nourish, and a further investment in Teamworks
● Post-period investments of approximately £33 million in ES1, a provider of ERP and business software in Greece, and £6 million in 3E, a provider of renewable energy asset performance management software and technical advisory services, both of which are expected to complete over the coming months
● Realisations during the period of £13 million, largely from the full exit of Quantios, which was signed at an uplift of 31% to carrying value4
● Post-period realisation of approximately £71 million from the full exit of Gen II at an uplift to carrying value of 34%4 (reflected in the 30 September NAV), expected to complete in 2027
● During the period, HgT agreed to extend and upsize the company’s revolving credit facility to £450 million from £375 million with expiration date extended from March 2027 to September 2029. The margin on the revolving credit facility has been reduced to 3.00% over SONIA with a commitment fee of 1.15%, both more favourable than the previous terms of 3.40% and 1.30% respectively.
● Available liquid resources of £286 million (including the £450 million credit facility, of which £168 million was drawn as at 30 September 2026)
● Outstanding commitments to Hg funds of £2.0 billion, of which £1.8 billion is expected to be called over the next four to five years
● Hg announced its intention to increase its aggregate strategic ownership of HgT from c.6% to more than 15% over the medium term, with on-market purchases ongoing
Jim Strang, Chairman of HgT, commented:
“Trading performance across the portfolio continues to be strong with +19% LTM EBITDA growth, and the portfolio delivered a second consecutive quarter of NAV growth despite headwinds from declining ratings of comparable companies.
Publicly listed software share prices recovered significantly in the quarter, with the IGV software index recovering most of its year-to-date losses, but the recovery has been far more selective than the sell-off that preceded it. While the volatility of listed peers continues to weigh on HgT valuations, it is encouraging that investors are now identifying the companies most likely to benefit from AI transformation, rather than selling the sector indiscriminately.
The Board continues to believe that the HgT portfolio is well positioned to benefit from AI-led change. The underlying businesses typically share three characteristics: they are deeply embedded in their customers’ workflows, they hold proprietary domain data built up over many years, and they operate in regulated or high-trust environments. These characteristics leave them well placed to use AI to augment the value they deliver to their customers rather than be substituted by it. Hg has worked with Anthropic, a leading frontier AI model developer, for some time, and their recently announced partnership to establish an AI services business in Europe, in which HgT will invest through its Hg fund commitments and as a direct co-investor, should further accelerate the deployment of AI across the portfolio.
Realisation activity continues to support valuations. In the period Hg completed the full exit of Quantios, which was signed at an uplift of 31% to carrying value, and post-period agreed the sale of Gen II at an uplift of 34%. Including Gen II, Hg has agreed or completed four full exits this year at an average uplift of 32% to carrying value, higher than the 10-year average uplift of 30%.
The discount to NAV has been volatile, narrowing to c.16% in August and widening to c.27% at 30 October. This remains wider than historic levels and, in the view of both the Board and the Manager, does not reflect the value or future prospects of the underlying portfolio. Alongside the Board’s ongoing review of share buybacks, the Manager has continued to buy shares in the market, increasing its ownership of HgT to over 6% as it works towards its stated intention of holding more than 15% over the medium term, a clear demonstration of its alignment with shareholders.”
HgT’s Q3 2026 Report and presentation to accompany the results are available to view at www.hgcapitaltrust.com.
1 By Enterprise Value, Source: Hg, FactSet as at 30 September 2026.
2 Total return assumes that all historical dividends have been re-invested.
3 Excluding 19 investments for which LTM earnings‑based metrics are not meaningful or representative (18% of the portfolio).
4 Average uplift to carrying value calculated as the difference between the HgT book value at signing and the last quarterly book value.
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For further information please contact:
HgCapital Trust
Laura Dixon
+44 782 459 2894
George Crowe
+44 777 461 7150
Hg
Tom Eckersley
Sam Ferris
Cadarn
Lucy Clark
+44 798 418 4461
David Harris
+44 736 888 3211
Notes:
- Please be advised that this announcement may contain inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.
- This announcement may include "forward-looking statements". These forward-looking statements are statements regarding the Company's objectives, intentions, beliefs or current expectations with respect to, amongst other things, the Company's financial position, business strategy, results of operations, liquidity, prospects and growth. Forward-looking statements are subject to risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Accordingly, the Company's actual future financial results, operational performance and achievements may differ materially from those expressed in, or implied by, the statements. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward-looking statements, which speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the Company's expectations with regard to them or any change in events, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Regulation Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
- 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. You may not get back the amount you invest.
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.
Further information on HgT including a short introduction video is available here: https://www.hgcapitaltrust.com/
HgCapital Trust plc LEI: 213800J7QUJJBEFSIN38
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