HGCapital Trust PLC · LSE:HGT
HGCapital Trust — H1 2026 Earnings Presentation
34 slides from HGCapital Trust's earnings presentation, September 2026
Slide 1: Half year 2026 update: Get connected
Half year 2026 update Get connected to a universe of technology and services businesses This document accompanies the interim report to 30 June 2026. The information in this document contains a summary of information set out in this report. References in this document to HgCapital Trust plc have bee
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: NAV and share price performance
NAV and share price performance HgT’s share price and net asset value per share have outperformed the FTSE All-Share Index over the long-term 10 year performance 650 Share price NAV 550 FTSE All Share H1 2026 performance was negatively 15.1% 450 p.a. affected by the sell-off in public software, in p
Slide 4: Strong trading offset by contraction in multiples during H1 2026
Strong trading was offset by a contraction in multiples during H1 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 HgT Dec 2025 to Ju
Slide 5: 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 6: Current share price discount does not reflect value of portfolio
We believe the current share price discount does not reflect the value or prospects of the underlying portfolio Hg announced its intention to build a 15%+ position in HgT, with on-market purchases now underway IGV ETF vs HgT, YTD 2026 % 10 YTD: - -4% -10 -18% -20 -30 IGV Index HgT -40 Jan '26 Feb '2
Slide 7: Realisations at uplifts to book value across market cycles
Consistent track record of generating realisations at uplifts to book value across market cycles L10Y average uplift of ~30% versus HgT book value, 2016-2025 YTD 2026: £147m of realisations, including four full/partial 55% exits and four recapitalisations 49% 44% 31% Full exits at average 31% 10Y av
Slide 8: 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: £170m incl. £46m of co-investment Investments made during the period Further investments since 30 June 2026 Provider of ve
Slide 9: HgT portfolio overview at June 2026
HgT portfolio overview at 30 June 2026 Hg ‘cluster’ by value 1 Top 10 Location Norway Cluster Tax & Accounting Website visma.com % Portfolio 12.4 60+ Insurance 8% ERP & Payroll / ERP & Payroll companies Tech Services 19% Automation & 4% 2 Sweden ifs.com 9.6 Engineering Automation & Engineering 3 UK
Slide 10: 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 +19% 34% 12.4% +25% 84% 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 • +25% A
Slide 11: Portfolio company balance sheets in robust financial health
Portfolio company balance sheets in robust financial health Strong trading drove a reduction in leverage from 7.4x to 6.9x LTM EBITDA over H1’26 Average equity cushion of ~70%, vs. ~39% Europe LBO average1 Active hedging strategy ~70% of debt quantum Four dividend recaps completed in H1’26 with furt
Slide 12: Managing maturity profile across the portfolio
Managing maturity profile across the portfolio 14 PortCos $20.9bn $0.4bn 16 PortCos $15.6bn 7 PortCos $0.4bn $13.4bn 14 PortCos $12.1bn $4.0bn $1.4bn $20.4bn 6 PortCos $15.2bn 8 PortCos $5.8bn $4.8bn $10.7bn $9.4bn 2 PortCos $1.4bn $3.4bn $0.9bn $3.4bn 0 $0.9bn $2.4bn 2026 2027 2028 2029 2030 2031 2
Slide 13: 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 Post period
Slide 14: 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 15: Earnings growth and realisations continued through multiple contraction
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 H1 NAV performance affected by a reduction in comparable multiples Eight liquidity events year to date wit
Slide 16: 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 17: 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 18: 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 19: 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 20: AI is transforming software workflows and expanding 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 21: Hg's portfolio companies are well positioned
Hg’s portfolio companies are well positioned Deterministic Data with their inherent High-accuracy, mission-critical workflows where reliability and Decades of structured, verticalised datasets 4D characteristics compliance matter embedded in workflows Domain Distribution Deep expertise in specialise
Slide 22: 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 23: 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 24: 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 25: Hg's decade-long investment in AI capabilities
Hg’s decade-long investment in AI capabilities 2024 AI Catalyst Product builds start in stealth- May 2026 mode AI head Amr takes on 2016 2018 2020 2022 AI partnerships: Hg-wide AI leadership Data and AI team starts First AI Data product grows builds build out First set of Portfolio AI use cases. JLA
Slide 26: Hg Catalyst: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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