HGCapital Trust PLC · LSE:HGT
HGCapital Trust — Q3 2026 Earnings Presentation
36 slides from HGCapital Trust's earnings presentation, Sep 30, 2026
Slide 1: Get connected to a universe of technology and services businesses
30 September 2026 Get connected to a universe of technology and services businesses This document accompanies the quarterly report to 30 September 2026. The information in this document contains a summary of information set out in that report. References in this document to HgCapital Trust plc have
Slide 2: HgCapital Trust (“HgT”)
HgCapital Trust (“HgT”) HgT is a FTSE 250 investment company listed on the main market of the London Stock Exchange and managed by Hg, Europe’s largest technology investor1 Investment strategy focused on profitable Trusted AI-first and growing companies champions operating providing mission-critical
Slide 3: Hg at a glance
Hg at a glance 30+ years of investing with Europe’s leading AI-first Technology and Tech Services sector specialist 30+ 2nd $195bn+ ~10 years years of investing in largest technology leveraging AI / machine portfolio enterprise value Technology & Tech Services group in Europe2 learning capabilities
Slide 4: HgT is Hg’s largest client, committed to all Hg funds
Sovereign Endowments HgT is Hg’s largest Pension plans Wealth Funds and insurance companies client, committed to all Hg funds HgT’s underlying Hg’s largest $110bn+ Hg’s portfolio shareholder base LP investor AUM companies HgT provides shareholders with access to a private software portfolio that wou
Slide 5: Hg invests in mission-critical AI-first Technology & Tech Services companies
Hg invests in mission-critical AI-first Technology & Tech Services companies providing essential business functions Deep sector Business model knowledge… attributes Tax & Accounting Business critical need delivered ERP & Payroll as software or service Legal and Regulatory Compliance Strong retention
Slide 6: A long-term focus on deep sub-sector knowledge & networks
A long-term focus on deep sub-sector knowledge & networks Tax & Accounting 21 years ERP & Payroll 21 years Legal & Regulatory 19 years Automation & Engineering 17 years Tech Services 16 years Fintech 12 years Insurance 12 years Healthcare IT 11 years Invested across all Hg portfolio companies Note:
Slide 7: AI is transforming software workflows and vastly increasing our total addressable market
AI is transforming software workflows and vastly increasing our total addressable market ~$1tn ~$60tn global value of global software TAM Software is increasingly able to addressable cognitive perform human tasks, redirecting labour a growing share of ~$60tn in labour spend towards software Mission
Slide 8: Hg’s portfolio companies are well positioned with their inherent “four Ds” characteristics
Hg’s portfolio companies are well positioned with their Deterministic Data inherent “four Ds” High-accuracy, mission-critical workflows where reliability and Decades of structured, verticalised datasets characteristics compliance matter embedded in workflows Domain Distribution Deep expertise in spe
Slide 9: Deterministic workflows are Hg’s core focus and AI’s launchpad
Deterministic workflows are Hg’s core focus and AI’s launchpad 1 AI reinforces, not replaces, systems of record Mission-critical software holding authoritative data and structuring core workflows becomes more embedded as AI layers on top Deterministic workflows Probabilistic workflows 2 Proprietary
Slide 10: LLM commoditisation shifts value capture to the application layer
LLM commoditisation shifts value capture and competitive advantages to the application layer Artificial Analysis Intelligence Index vs cost per task — 23 of 593 models tracked Proprietary Open-weight Claude Fable 5 60 GPT-5.6 Terra GPT-5.6 Sol Grok 4.5 Kimi K3 Claude Opus 4.8 Claude Sonnet 5 50 GPT-
Slide 11: Hg’s AI “laboratory”
Hg’s AI “laboratory” At Hg we have a dynamic AI “laboratory”1 across ~60 innovative ~60 1,600+ portfolio companies actively AI projects live across the portfolio, Technology & Tech Services engaging with and deploying AI supported centrally by the Hg Value Creation team companies, all working togeth
Slide 12: Hg’s decade-long investment in AI capabilities
Hg’s decade-long investment in AI capabilities Nov 2026 2024 AI head Amr takes on AI Catalyst Product Hg-wide AI leadership builds start in stealth- mode Hg to invest in a new AI transformation company 2016 2018 2020 2022 AI partnerships: alongside Anthropic Data and AI team starts First AI Data pro
Slide 13: Hg Catalyst: A dedicated AI product incubator
Hg Catalyst: A dedicated AI product incubator supporting Hg’s “sweet-spot” businesses with industry leading AI expertise ✓ Product-market fit ✓ Dedicated tiger teams ✓ Proprietary data ✓ Industry leading talent ✓ Domain expertise ✓ Tools, tech & IP ✓ Deep integrations ✓ Deep partnerships ✓ Strong di
Slide 14: Case study: How CINC shipped a full AI suite in 3 months
Case study: How CINC shipped a full AI suite in 3 months The situation Actions taken The outcome • CINC provides software to property • A combined team of CINC product leaders, • Launched Cephai, CINC's AI system, management companies running US engineers, and a specialist embedded natively in the p
Slide 15: AI product strategy is already driving exit activity
AI product strategy is already driving exit activity • Hg Catalyst assembled AI • Hg Catalyst helped to expand • Hg Catalyst supported engineers alongside GTreasury InteleGence partnerships for Quantios domain experts to domain experts to design, diagnostic tooling and focused build a separately pri
Slide 16: …more to come: 35+ AI product launches in 2026 so far
35+ AI product launches in 2026 so far (highlights) graphical user interface, text, application, chat or text message graphical user interface, application graphical user interface, website graphical user interface, text, application, chat or text message 17 September 2026 2 September 2026 4 August
Slide 17: Summary and outlook
Summary and outlook We believe agentic AI represents a generational opportunity for technology investors and will materially expand the addressable market for software incumbents To capture this opportunity, we have built one of the largest dedicated AI capabilities in European private equity with o
Slide 18: Strong trading was offset by a contraction in multiples in the year to Q3
Strong trading was offset by a contraction in multiples in the year to Q3 2026, as public software valuations diverged from fundamentals While valuations can be volatile over short time horizons, the compounding of earnings growth remains the most important driver of long-term performance 1 HgT Dec
Slide 19: HgT NAV and share price performance
HgT NAV and share price performance Long term outperformance of the FTSE All-Share Index 10-year performance 500 Share price NAV 450 FTSE All Share 15.1% 400 p.a. Performance continues to 350 12.4% recover following the broad- p.a. 300 based sell-off in public software 250 in Q1 8.1% 200 p.a. Q1 Q2
Slide 20: In the long run, earnings growth is the key driver of software returns
In the long run, earnings growth is the key driver of software returns Earnings drive consistent returns. Multiples are much more volatile 50% 1000% 40% 800% 30% 600% 20% 400% Cumulative return Annual return 10% 200% 0% 0% -10% -200% -20% -400% -30% Returns from multiple -600% -40% Returns from earn
Slide 21: Strong recovery in IGV software index, with increased dispersion of performance
Strong recovery in IGV software index, with increased dispersion of performance among the underlying companies IGV ETF vs HgT, YTD 2026 % 10 YTD: - -1% -10 -20 -21% -30 IGV Index HgT -40 Jan '26 Feb '26 Mar '26 Apr '26 May '26 Jun '26 Jul '26 Aug '26 Sep '26 Oct '26 Q2 2026: Stabilisation of public
Slide 22: The share price discount to NAV has rarely been this wide
The share price discount to NAV has rarely been this wide HgT's discount to NAV has averaged ~9% over the last decade, while NAV compounded at ~15% p.a. 10-year NAV and share price performance HgT Premium (+) / Discount (-) to NAV % 500 20% Share price 450 NAV 15% 10% 400 p.a. 350 0% 13% p.a. 300 10
Slide 23: Consistent track record of realisations at uplifts to carrying value
Consistent track record of generating realisations at uplifts to carrying value across market cycles L10Y average uplift of 30% versus HgT carrying value, 2016-2025 YTD 2026: £224m of realisations signed or completed, 55% including four full exits… 49% 44% 32% Full exits at average 32% 10Y average u
Slide 24: Continuing to invest in leading technology and services platforms
Continuing to invest in leading technology and services platforms Co-investments (free of all fees) now represent 11% of NAV, in line with the 10-15% target allocation YTD 2026: £213m incl. £46m of co-investment Year to date investments to 30 September 2026 Further investments since 30 September 202
Slide 25: HgT portfolio overview at September 2026
HgT portfolio overview at 30 September 2026 Hg ‘cluster’ by value 1 Top 10 Location Norway Cluster Tax & Accounting Website visma.com % Portfolio 12.9 60+ Insurance 7% ERP & Payroll / ERP & Payroll companies Tech Services 18% Automation & 4% 2 Sweden ifs.com 9.6 Automation & Engineering Engineering
Slide 26: Continued strong trading across HgT's two largest holdings
Continued strong trading across HgT's two largest holdings HgT’s largest portfolio companies produce public reporting +17% 36% 12.9% +24% 85% 9.6% ARR growth EBITDA margin HgT portfolio ARR growth Recurring revenue HgT portfolio • ARR at an all-time high of €3.1 billion “Realising AI's full • ARR ov
Slide 27: Portfolio company balance sheets in robust financial health
Portfolio company balance sheets in robust financial health Strong trading YTD drove a reduction in leverage from 7.4x to 6.7x LTM EBITDA as at Q3’26 Average equity cushion of ~70%, vs. ~44% Europe LBO average1 Active hedging strategy ~70% of debt quantum Five dividend recaps completed YTD and six s
Slide 28: Managing maturity profile across our portfolio
Managing maturity profile across our portfolio 14 PortCos $20.9bn $0.4bn 15 PortCos 15 PortCos 6 PortCos $14.2bn $14.0bn $0.4bn $12.7bn $1.4bn $4.0bn $20.4bn 9 PortCos 6 PortCos $13.8bn $5.7bn $12.7bn $5.7bn $1.4bn $8.7bn $3.1bn 1 PortCo $4.3bn $2.6bn 0 $0.1bn 2026 2027 2028 2029 2030 2031 2032 2033
Slide 29: HgT balance sheet and outstanding commitments
HgT balance sheet and outstanding commitments Pro-forma outstanding commitments of £2.0bn, of which £1.8bn is expected to be called over the next four to five years Revolving credit facility extended and upsized at more favourable terms Pro-forma balance sheet and outstanding commitments HgT agreed
Slide 30: HgT balance sheet and outstanding commitments
HgT balance sheet and outstanding commitments £1.5bn of outstanding commitments relate to commitments to Hg’s 2025/2026 vintage funds HgT maintains its “opt-out” provision for all funds, allowing it to opt out of new investments without penalty if it does not have sufficient liquidity Pro-forma bala
Slide 31: Earnings growth and realisation activity continued through a period of volatility
Earnings growth and realisation activity continued through a period of volatility and multiple contraction in public software The portfolio continues to exhibit strong trading performance, with year-to-date NAV performance affected by a reduction in comparable multiples Ten liquidity events year to
Slide 32: Further resources
Further resources Software in the AI era: Why HgT Capital Markets Day 2026 Orbit: an Hg podcast specialisation matters more than ever HgT website: https://www.hgcapitaltrust.com/ Hg website: https://hgcapital.com/ HgT LinkedIn: https://www.linkedin.com/company/hgcapital-trust-plc Orbit podcast: http
Slide 33: Hg to increase alignment with HgT shareholders
Hg to increase alignment with HgT shareholders On 4 June 2026, Hg announced its intention to make an increased strategic investment in HgT, with an active programme to increase the ownership of Hg partners, employees and the Hg balance sheet from their existing shareholding of ~6% to over 15%, over
Slide 34: Contact
Contact For further information on HgCapital Trust plc, please visit our website: www.hgcapitaltrust.com Or contact our Investor Relations Team at: investorrelations@hgcapital.com You can also follow us: LinkedIn www.linkedin.com/company/hgcapital-trust-plc Doceo www.doceo.tv/funds/hg-capital-trust/
Slide 35: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN THE UNITED STATES OR TO “US PERSONS” (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR INTO OR WITHIN AUSTRALIA, CANADA,
Slide 36: Disclaimer
Disclaimer These materials include statements that are, or may be deemed to be, "forward-looking statements" which are based on current expectations and projections about future events. In some cases, these forward- looking statements may be identified by the use of forward-looking terminology, incl