- Double-digit NAV increase
- Total share price return of 26.2%
- High portfolio turnover
Private equity investment trust HgCapital (HGT) delivered strong preliminary results for the year to December with an estimated 10.7% uplift in total NAV (net asset value) return per share to 498.6p.
Investors responded positively, chasing the stock up 10p or 2.4% to 439p close to its recent highs.
HIGH RETURNS
The trust, managed by Hg, Europe’s largest investor in unquoted software and service companies, generated a total share price return of 26.2% over the year helping reduce the discount from 23% to 13%.
The top 20 holdings, which represent 77% of the portfolio, showed growth of 25% in revenue and 28% growth in EBITDA (earnings before interest, tax, depreciation and amortisation) during the period.
During 2023, the trust made investments of £71 million and sold assets to the tune of £343million meaning it ended the year with liquidity of £625 million including an undrawn RCF (revolving credit facility) of £350 million.
ACTIVE MANAGEMENT
On top of last year’s £343 million of realisations, in January the trust announced the sale of its stake in Argus Media, a provider of data to the energy and commodity markets, for £52 million.
That deal marked Hg’s 13th asset sale since the start of 2023 and its 29th realisation in the last two years representing proceeds from nearly half of its portfolio, demonstrating the strength and attractiveness of the underlying businesses.
