HgCapital Trust PLC on Wednesday said manager Hg has agreed to a partial sale of Iris Software Group Ltd to Los Angeles-based private equity firm Leonard Green & Partners LP.
The London-based fund provides access to the private equity investments of New York-based manager Hg. HGT said the terms of Hg’s transaction Iris were not disclosed, but the deal valued its own investment in Iris at around £99.8 million.
Iris provides software and services in accountancy, payroll, human resources and education.
HGT will receive a net distribution of approximately £42.1 million from Iris, having re-invested a portion of its proceeds in the business alongside other institutional clients of Hg investing through Hg Saturn.
As part of the transaction, Hg’s Saturn 1 fund will fully exit its remaining position in Iris. HGT’s exposure to Iris will be £57.7 million at closing representing approximately 2.5% of net asset value, it said.
Senior partner at Hg Nic Humphries says: ‘Iris and Hg have a long history, evolving together over the past 20 years. We’re delighted to now partner alongside LGP to accelerate Iris’s US ambitions.’
Shares in HgCapital Trust were up 0.6% at 429.50 pence each in London on Wednesday morning. It has a £1.97 billion market capitalisation.
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