HGCapital Trust PLC · LSE:HGT
HGCapital Trust — H1 2025 Earnings Presentation
31 slides from HGCapital Trust's earnings presentation, September 2025
Slide 1: H1 2025 update: Get connected
H1 2025 update Get connected to a universe of software and services businesses This document accompanies the report to 30 June 2025. The information in this document contains a summary of information set out in this report. References in this document to HgCapital Trust plc have been abbreviated to
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 software investor1 £2.4bn market capitalisation Investment strategy focused on profitable and growing Resilient business models with highly +19.2% p
Slide 3: Hg track record and scale
30+ year #1 track record of investing Private Equity tech investor by Total Deal Counts and Exits1 >$100bn $180bn assets under management portfolio enterprise value 6 c.430 Offices in London, Munich, employees including >250 As at 30 June 2025; adjusted pro forma for events post-period end; past per
Slide 4: HgT is Hg's largest client, committed to all Hg funds
HgT is Hg’s largest client, Pension Sovereign Wealth Endowments and insurance plans Funds companies committed to all Hg funds HgT provides listed access to “the free float” of $180bn EV of Hg Software HgT’s underlying Hg’s largest “Inc” >$100bn Hg’s portfolio shareholder base LP investor AUM compani
Slide 5: HgT provides access to all Hg funds and direct co-investment
HgT provides access to all Hg funds and direct co-investment 85-90% target allocation 10-15% Mercury Genesis Saturn Co-investment “Transforming founder-led “Creating segment leadership” “Scaling segment leaders” “Fee-free and supports increased businesses” balance sheet efficiency” Lower mid-market
Slide 6: Targeting robust and resilient 'Hg sweet-spot' business models
Targeting robust and resilient ‘Hg sweet-spot’ business models Business model Focus on end- attributes market clusters Business critical software Tax & Accounting or service ERP & Payroll Subscription / repeat Legal and Compliance revenue model Sweet Automation and Engineering Low sensitivity to eco
Slide 7: Building scale and deep sub-sector knowledge over years of repeated investments
Building scale and accumulating deep sub-sector knowledge over years of repeated investments Tax & Accounting >21 years ERP & Payroll >21 years Legal & Regulatory >18 years Automation & Engineering >16 years Technology Services >15 years Fintech >12 years Healthcare IT >10 years Insurance >11 years
Slide 8: Operational expertise across a wide range of areas
We have operational expertise across a wide range of areas, reflecting where we see repeat value creation opportunities Team of 60+ operational specialists providing hands-on support to portfolio companies Growth Tech, Product, Cyber Data and AI Projects Support Talent • Sales • R&D and tech platfor
Slide 9: Hg's GenAI capability to accelerate AI gains in Operations and Product
Portfolio companies can leverage Hg’s GenAI capability to accelerate AI gains in Operations and Product AI thought leadership Regular CEO updates summarizing latest market trends + tactical guidance on GenAI R&D, CS, Pricing etc. Mobilization: Management team AI Immersion & Strategy Dedicated immers
Slide 10: The private software market opportunity
The private software market opportunity
Slide 11: Demographics is destiny
Demographics is destiny… Long-term decline in working age population is expected to drive up cost of labour and increase software adoption OECD working age population (m) Relationship between labour cost and software spend 950 2022: 1,800 900 All time high R2=0.80 1,600 United States Software and Se
Slide 12: Earnings growth compounds to drive long-term performance of software
Earning growth compounds to drive long-term performance of software Software earnings versus market1 In the long-run, earnings growth drives performance. Multiples are more volatile2 900 50% 1000% Software 40% 800% 800 30% 600% 700 20% 400% 600 EPS (rebased) Cumulative return 10% 200% Annual return
Slide 13: Software companies are staying private for longer
Software companies are staying private for longer Median Market Value of Tech Initial Public Offerings by year, $m 5,000 4,500 1980-1990s 2000s 2010-2020s Median IPO valuation of c.$100-150m Median IPO valuation of $300-600m Median IPO valuation of $600m-$1bn+ 4,000 Opportunities for private tech Op
Slide 14: Europe's fragmented market structure provides opportunities in private software
Europe’s fragmented market structure provides a broad range of opportunities in the private software space Europe: Tax & Accounting segment leaders US: Tax & Accounting segment leaders >50% of the top 40 European <20% of the top 40 US software software companies are private1 companies are private1 N
Slide 15: HgT provides listed access to the free float of Hg's portfolio
HgT provides listed access to the “free float” of Hg’s portfolio, one of the largest and fastest-growing in Europe 10% $299bn 19% $180bn 4% 13% Revenue $39bn 6% 7% $34bn growth 4% $13bn $14bn EV $4bn Source: Factset, Europe tech firm EVs and Hg’s EV reported as at 30 June 2025. HY25 LTM revenue grow
Slide 16: HgT H1 2025 update
HgT H1 2025 update
Slide 17: Compounding growth: the power of a long-term investment strategy
Compounding growth: the power of a long-term investment strategy Both HgT’s share price and net asset value per share have consistently outperformed the FTSE All-Share Index over the long-term £2.5bn £2.4bn 19.2% Net assets Market capitalisation p.a. 17.6% 539.5p 515.0p p.a. NAV per share Share pric
Slide 18: Continued strong trading in H1 2025 offset by adverse movements in ratings and fx
Continued strong trading in H1 2025 offset by adverse movements in ratings and fx during a volatile period for markets (5%) impact from ratings and fx At 30 June 2025. Gross portfolio value before the deduction of fund-level liabilities. 18 Past performance is not a reliable indicator of future resu
Slide 19: HgT portfolio overview at 30 June 2025
HgT portfolio overview at 30 June 2025 Hg ‘cluster’ by value Top 10 Location Sub-sector Website % Portfolio Insurance ERP & Payroll Tax & 8% Technology 28% 1 Norway Accounting / visma.com 12.0% Services 57 ERP & Payroll 5% 2 Sweden ERP & Payroll ifs.com 9.7% Automation & Engineering 3 UK ERP & Payro
Slide 20: Continued strong trading from "Rule of 40+" portfolio
Continued strong trading from “Rule of 40+” portfolio HgT has a “Rule of 45” portfolio: 12% organic revenue growth and 33% EBITDA margin LTM revenue growth1 19% A “sleep well” investment strategy (12% organic) • Highly recurring revenues and low customer churn due to mission critical software and se
Slide 21: Robust portfolio company balance sheets with below market gearing
Robust portfolio company balance sheets with below market gearing: >70% equity in capital structures Hg portfolio debt maturity profile: no meaningful maturities for Europe LBO ~2 years3 average1 2 £15.1bn £14.3bn Relates to 44% 71% 25.7x PortCos in active sale preparation equity equity EV/EBITDA £8
Slide 22: Consistent realisation activity despite a challenging environment for exits
Consistent realisation activity despite a challenging environment for private equity exits HgT has continued to realise investments, while global buyout distributions hit a low as a percentage of net assets1 40% £165m realisations YTD 35% 22% avg. uplift 30% Distributions as % of NAV 5 year average
Slide 23: Hg has continued to invest selectively
Hg has continued to invest selectively Repeatable investments in companies with similar defensive business models building a store of future value for HgT Investing further capital into existing portfolio companies to support their next leg of growth £376m (incl. £38m of co-investment) Invested YTD
Slide 24: Case study: re-investing in a proven category winner
Case study: re-investing in a proven category winner to participate in its future growth Personal & Informatik (“P&I”) is a leading provider of payroll and strategic HR software and services, headquartered in Germany. During H1 2025, Hg Saturn 1 partial realised its investment (made in 2020) via the
Slide 25: New commitments to Hg funds
New commitments to Hg funds Sizing of commitments relative to NAV is in-line with previous vintages. The new commitments will sit behind subscription lines at the level of the Hg funds, delaying expected capital calls to HgT until 2026 (Saturn 4) and 2027 (Genesis 11 and Mercury 5), providing HgT wi
Slide 26: HgT's robust balance sheet supports future investment activity
HgT’s robust balance sheet supports future investment activity Pro-forma balance sheet, including new fund commitments HgT’s “toolbox” to manage liquidity across market cycles • Fund commitments: foundation of investment strategy providing exposure to all Hg investments • Co-investment: option, with
Slide 27: Outlook
Outlook Resilient trading performance underpinned by mission-critical nature of products and services provided by portfolio companies. Selective investment in companies with similar defensive business models, building a store of future value for HgT While the exit market remains challenging, we cont
Slide 28: Further resources
Further resources A person in a black shirt A person using a computer AI-generated content may be incorrect. AI-generated content may be incorrect. Nic Humphries on Alt Goes Mainstream Hg and Visma featured in the Financial Orbit: an Hg podcast Times A person sitting in a chair and holding a piece o
Slide 29: 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 30: 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 31: 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