Acquisition of secondary interest in HgCapital 6 (6105K)
July 19 2011 - 2:00AM
UK Regulatory
TIDMHGT
RNS Number : 6105K
HG Capital Trust PLC
19 July 2011
HgCapital Trust buys a secondary interest in HgCapital 6
London, 19 July 2011: HgCapital Trust plc (or "the Trust") has
today announced the acquisition from a third party of a GBP15
million limited partnership interest in HgCapital 6 ("Hg6"), the
current buyout fund of its Manager, HgCapital.
The Trust has paid GBP7.8 million in cash for the funds already
invested. This represents a 2% premium above the Net Asset Value of
Hg6 as at 31(st) December 2010, adjusted for subsequent cash flows
to the date to completion. The balance of the Trust's new
investment represents a commitment of GBP7.2 million which will be
drawn down to fund new deals pari passu with other limited
partnership interests held by institutional clients of HgCapital.
The vendor is selling the interest as part of its stated strategy
to wind down its exposure to the private equity sector.
At the end of 2008, the Trust agreed to invest GBP285 million by
way of co-investment alongside its Manager's Hg6 limited
partnership. Hg6 and the Trust's co-investment agreement together
form a GBP1.9 billion investment fund targeting mid-market buyouts
in Western Europe. Accordingly, the Trust has taken a 15% interest
in each of HgCapital's buyout acquisitions. The acquisition of a
limited partnership interest in Hg6 therefore increases the Trust's
participation in each of HgCapital's deals to 15.8%.
Between the launch of Hg6 and 31 May 2011, GBP132 million of the
Trust's capital has been invested as follows:
Co-investments alongside Hg6 (as at 31 May 2011) as a % of the
Trust's NAV
Investment Sector Geography Year GBPm % NAV
------------------- ------------ -------------- ----- -------- ------
1 TeamSystem TMT Italy 2010 25,621 7.2%
------------------- ------------ -------------- ----- -------- ------
2 Frosunda Healthcare Nordic Region 2010 15,947 4.5%
------------------- ------------ -------------- ----- -------- ------
3 Lumesse TMT UK 2010 14,281 4.0%
------------------- ------------ -------------- ----- -------- ------
Midas (t/a
4 Goldshield) Healthcare UK 2009 12,441 3.5%
------------------- ------------ -------------- ----- -------- ------
5 JLA Services UK 2010 12,227 3.5%
------------------- ------------ -------------- ----- -------- ------
6 Manx Telecom TMT UK 2010 11,033 3.1%
------------------- ------------ -------------- ----- -------- ------
7 SimonsVoss Industrials Germany 2010 10,560 3.0%
------------------- ------------ -------------- ----- -------- ------
8 ATC Services Benelux 2011 10,379 2.9%
------------------- ------------ -------------- ----- -------- ------
9 Teufel Industrials Germany 2010 9,791 2.7%
------------------- ------------ -------------- ----- -------- ------
10 Epyx TMT UK 2009 9,783 2.7%
------------------- ------------ -------------- ----- -------- ------
Total 132,063 37.1%
------------------- ------------ -------------- ----- -------- ------
In addition to these investments, in June 2011 the Trust agreed
to contribute GBP12.3 million (3.5% of NAV) towards HgCapital's
acquisition of Mainio Vire, Finland's leading social care
company.
As a result of this transaction and the investment in Mainio
Vire, liquid resources are estimated to be GBP82.0 million (23% of
the 31 May 2011 NAV) and the Trust's undrawn commitment to Hg6,
Hg5, RPP and RPP2 is GBP200 million.
Roger Mountford, Chairman of HgCapital Trust, commented: "The
Board is very pleased to take advantage of this opportunity to
increase our exposure to a portfolio of investments that we know
well and which we believe will deliver strong medium-term growth to
the Trust's Net Asset Value.
"Occasional opportunities to make secondary purchases in funds
managed by HgCapital present us with another way to derive returns
from funds in which we have confidence, so as to achieve
shareholder value while managing our resources. We will be
interested to look at other secondary opportunities in our
Manager's funds that may arise in the future."
- Ends -
For further details please contact:
HgCapital Trust: Roger Mountford +44 (0)20 7089 7888
Maitland: Neil Bennett +44 (0)20 7379 5151
George Hudson
Rowan Brown
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, 2009 and
2010.
Over the last ten years (to 31 May 2011), the compound annual
growth rate of the HgCapital Trust plc share price has been 14.6%
p.a. compared to 4.5% p.a. from the FTSE All-Share Index.
For further details, please see www.hgcapitaltrust.com
About HgCapital
HgCapital is a private equity investor focused on the European
middle market. Its business model combines sector-specific thematic
investing with dedicated portfolio management support. HgCapital
seeks to invest in growth companies in expanding sectors which
create jobs across Western Europe.
HgCapital is also an investor in renewable energy, establishing
itself as a market leader by building a dedicated energy investment
team in 2004. It continues to invest a dedicated fund in a range of
renewable power technologies across Western Europe.
HgCapital manages over GBP3.4 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 website, HgCapital Trust'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
ACQGGUWAMUPGGQR
Hg Capital (LSE:HGT)
Historical Stock Chart
From May 2024 to Jun 2024
Hg Capital (LSE:HGT)
Historical Stock Chart
From Jun 2023 to Jun 2024
