HGT Hg Capital Trust Plc

 

TIDMHGT 
 
RNS Number : 5821V 
HG Capital Trust PLC 
04 November 2010 
 

HgCapital Trust plc will participate in the acquisition of a majority stake in 
ATC Group alongside other institutional clients of HgCapital. The Trust, whose 
shares are listed on the London Stock Exchange, gives private and institutional 
investors the opportunity to participate in all HgCapital's investments. It will 
contribute approximately GBP10.3 million to the investment. 
 
Set out below is the text of a press release issued today by HgCapital 
announcing the acquisition. 
 
                  HgCapital and ATC Group announce investment 
 
London, Amsterdam, 4 November 2010: HgCapital, the European sector-focused 
private equity investor, and ATC Group, the leading independent provider of 
corporate services to multinational corporations and financial institutions have 
today announced an investment by HgCapital in ATC Group. Under the terms of the 
agreement, funds managed by HgCapital will acquire a 61% shareholding in ATC 
Group through the buy-out of three founder (manager) shareholders, while the 
remaining manager shareholders will maintain their interest in ATC Group and 
will collectively own around 39% of the company. 
 
ATC Group is one of the oldest independent trust companies in the world. Founded 
in 1893 and headquartered in Amsterdam, ATC Group provides fiduciary, management 
and administration services to multinational corporations, financial 
institutions, investment funds and entrepreneurs, across the most important 
financial international jurisdictions.  Since its inception ATC Group has been a 
management-owned company, each manager shareholder transferring his shares to 
the next generation. The growth of ATC Group in the last two decades, and its 
ambition to accelerate such growth in the years to come, prompted shareholders 
and management to seek external capital investment. 
 
With the assistance of HgCapital, ATC Group will be able to develop its market 
strategy, reinforcing its position in Europe with a significant footprint in 
Asia, providing high value added services to corporate and institutional 
clients. Under this strategy, ATC Group aims to build on its best-in-class 
reputation, serving tier-1 corporate clients and institutions in well-regulated 
jurisdictions, while retaining market leadership in institutional services in 
the Benelux countries. 
 
HgCapital's sector-focused approach continues to drive targeted investment 
origination.  The investment in ATC Group was completed after two years of 
research into the trust and fiduciary services market and represents the 
continued application of HgCapital's thematic, sector-driven investment 
strategy. Because of the depth of its focus on this market segment, HgCapital 
was able to directly source the ATC Group investment opportunity on a wholly 
proprietary and off-market basis. 
 
The investment is anticipated to complete in December 2010 following receipt of 
regulatory clearances.  Upon completion, Johan Lont will assume responsibilities 
as Chief Executive of ATC Group with Jan Scholts as Chief Financial Officer. 
 
Commenting on the investment, Matthew Rourke, Head of HgCapital's Services 
investment team, stated: "We are delighted to invest in ATC Group and support 
the company in its shareholding succession in addition to funding future 
development of the business. ATC Group displays a number of key characteristics 
which HgCapital finds compelling as it is a leading, high-quality provider in a 
fast growing market.  Fiduciary services have been a major focus in our direct 
origination strategy, and our knowledge of the sector has allowed us to identify 
and partner with a high quality and fast growing business at the forefront of 
the industry.  The company has consistently and systematically grown market 
share in its core jurisdictions and its business model has proven highly 
resilient through the downturn.  We are confident that we are also supporting an 
outstanding management team who will continue to outperform the wider market." 
 
Johan Lont, executive board member of ATC Group, said: "We are happy that the 
three founder shareholders are willing to accommodate the entry of a financial 
investor who can add value, working with management to take ATC Group to the 
next level. In HgCapital we have found an investor who shares our values and can 
add expertise and knowledge of the industries and markets in which we operate. 
This investment is a vote of confidence in our business and our industry. Our 
continued involvement, as management and shareholders, will secure the 
continuity of ATC Group's personal and business partners' approach." 
 
                                    - Ends - 
 
For further details please contact: 
HgCapital: Matthew Rourke +44 (0)20 7089 7930 
HgCapital Trust: Roger Mountford +44 (0)20 7089 7930 
Maitland: Neil Bennett +44 (0)20 7379 5151 
ATC Group: Johan Lont: +31 (20) 577 1177 
 
 
About ATC 
With a history stretching more than 115 years, ATC Group has evolved to its 
current form as a specialized management, administration and reporting 
outsourcing organisation. Originally set up to act as a trustee of bonds issued 
by U.S. Railway companies and Russian oil corporations, ATC Group has developed 
into an international corporate services provider to the world's largest 
corporates and financial institutions. Its growth has largely been organic, 
although over the last few years ATC Group has made a number of strategic 
acquisitions. ATC Group is an independent company, i.e. not affiliated in any 
manner with a bank, law or accounting firm. Over 350 professionals are employed 
by ATC Group, offering their expertise in forming, administering and managing 
innovative structures that are tailored to accommodate each client's needs and 
business objectives. The ATC Group network ensures that ATC clients are serviced 
out of the most important financial centres in the world today. For further 
details, please see www.atcgroup.com 
 
About HgCapital Trust plc 
HgCapital Trust plc is an investment trust whose shares are listed on the London 
Stock Exchange. The Trust is a client of HgCapital, giving investors exposure to 
a portfolio of high-growth private companies, through a liquid vehicle. New 
investments and existing portfolio companies are managed by HgCapital, an 
experienced and well resourced private equity firm with a long-term track record 
of delivering superior risk-adjusted returns for its investors. The Trust has 
won the Investment Week Private Equity Investment Trust of the Year in 2005, 
2006, 2007, 2008 and 2009. For further details, please see 
www.hgcapitaltrust.com 
 
About HgCapital 
HgCapital is a sector focused private equity investor in the European 
mid-market. We focus on investments with an enterprise value in the range of 
GBP50-GBP500 million. Our business model combines sector specialisation with 
dedicated, pro-active support to our portfolio companies as well as the 
corresponding management expertise across all phases of the investment process. 
HgCapital manages over GBP3 billion for some of the world's leading 
institutional and private investors. For further details, please see 
www.hgcapital.com 
 
Neither the contents of HgCapital's or ATC Group's website nor the contents of 
any website accessible from hyperlinks on the websites (or any other website) is 
incorporated into, or forms part of, this announcement. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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