HGCapital Trust PLC · LSE:HGT
HGCapital Trust — Q1 2026 Earnings Presentation
31 slides from HGCapital Trust's earnings presentation, May 2026
Slide 1: Get connected to a universe of technology and tech-services businesses
Get connected to a universe of technology and tech-services businesses
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 champions operating companies providing in protected ver
Slide 3: Hg track record and scale at a glance
30+ year #2 track record of investing Private Equity tech investor by Total Deal Counts and Add-ons1 ~$110bn >$185bn assets under management portfolio enterprise value 6 ~410 Offices in London, Munich, employees including >250 New York, San Francisco, Paris investment and other As at 31 March 2026 &
Slide 4: 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 a software or service Legal and Compliance Strong retention metrics
Slide 5: Focused Hg Cluster approach has driven deep sub-sector knowledge
Focused “Hg Cluster” approach has driven deep sub-sector knowledge With active investments Building scale and accumulating knowledge over years of We focus on eight vertical sectors in ~60 businesses repeated investments and deployed equity Our verticals Our current portfolio Years focused No. of in
Slide 6: The world we see: AI is transforming software workflows
The world we see: AI is transforming software workflows and vastly increasing our TAM Hg’s focused universe is therefore one of the most attractive landscapes in which to apply AI safely and at scale AI native product opportunity Mission Proprietary ~$60tn critical workflows data advantage • Enterpr
Slide 7: Leading AI providers are partnering with enterprise software
The world's leading AI providers are partnering with enterprise software to accelerate customer adoption SaaS incumbents provide the data moats, deep workflow integration, domain expertise and enterprise trust that LLMs cannot replicate alone "[Claude is] not a product that's trying to own every wor
Slide 8: Hg's portfolio companies are well positioned to benefit from AI
Hg’s portfolio companies are well positioned to benefit from AI Four shared characteristics underpin their ability to deploy AI effectively Data Domain Decades of structured, Deep expertise in verticalised datasets specialised industries embedded in workflows Distribution Deterministic Established c
Slide 9: Hg's AI-first innovation can translate to meaningful uplift on exit
Hg’s AI-first innovation at pace can translate to meaningful uplift on exit >1,600 projects live across the portfolio ~60 portfolio companies actively deploying GenAI >100 agentic products and features launched 2x AI-enabled exits ~80% average uplift 1 Note: For illustrative purposes only. Past perf
Slide 10: 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 11: Hg Catalyst: over 20 product builds in 2025
Hg Catalyst: In 2025 Catalyst supported over 20 product builds across the portfolio 100+ Catalyst engineers, designers and product managers Designing > building > pricing > packaging > launching AI products, in a matter of weeks1 Note: Hg analysis as at October 2025 11 1Early access launches
Slide 12: AI-first, product-led transformation at Hg
AI-first, product-led transformation at Hg 1. Re-designing 2. Building 3. Transforming safely, workflows AI-native products repeatably and at scale User Use accumulated Shared learnings across domain-specific data to create ~60 portfolio companies new AI-native products Context & Tools Planning Refl
Slide 13: Building strategic partnerships across the space
Building strategic partnerships across the space – with more to come Agentic Coding Agentic Support AI Customer Success +200% +25% +30ppts gain in productivity gain in productivity increase in feature adoption Strategic partnership with: Answer Engine Optimisation AI Sales AI Chat +100% +15ppts +20%
Slide 14: HgT update, Q1 2026
HgT update, Q1 2026
Slide 15: Software valuations at a 20-year low despite earnings growth
Software valuations at a 20-year low despite earnings growth remaining well above the wider market Software NTM Price:Earnings ratio relative to the market Software earnings versus market Software Peak: 2.39x 900 2.6 October 2021 800 2.2 700 600 1.8 500 Long-term average: 1.56x 400 Market 1.4 300 20
Slide 16: NAV and share price performance
NAV and share price performance Both HgT’s share price and net asset value per share have outperformed the FTSE All-Share Index over the long-term Performance Index Q1 2026 performance negatively impacted by the sell- 650 Share price off in public software companies: NAV • NAV per share: 528.3p, -5.
Slide 17: Strong trading offset by contraction in multiples during Q1 2026
Strong trading was offset by a contraction in multiples during Q1 2026, as public software valuations diverged from fundamentals 1 2 154 (289) An acceleration in trading performance at a number 42 (90) 1 of portfolio companies resulted in a strong 3,274 contribution from trading, adding +5% to portf
Slide 18: Public software multiples show significant volatility versus private M&A comps
Public software multiples have shown significant volatility compared to private M&A comps Public software multiples are volatile Public markets value the price of a share, determined by the marginal seller/buyer 40 Public software multiples have ranged from a 25% discount to a 45% premium to HgT’s m
Slide 19: HgT's discount-adjusted multiple is a material discount to public comps
HgT’s discount-adjusted multiple represents a material discount to public comps 40 HgT’s discount to NAV has increased from 9% to ~30% since the start of the year 35 Following the sell-off, the portfolio is “on sale” at a look- through valuation of c.17x EV/LTM EBITDA EV/LTM EBITDA 30 Insiders have
Slide 20: HgT portfolio overview at March 2026
HgT portfolio overview at 31 March 2026 Hg ‘cluster’ by value Top 10 Location Sub-sector Website % Portfolio Insurance ~60 8% ERP & Payroll Tax & 28% 1 Norway Accounting / visma.com 12.7 Tech Services ERP & Payroll 5% companies 2 Sweden ERP & Payroll ifs.com 9.5 Automation & Engineering >$185bn 2% 3
Slide 21: Continued strong trading from Rule of 40+ portfolio
Continued strong trading from “Rule of 40+” portfolio HgT has a "Rule of 44" portfolio: +10% organic sales growth and 34% organic EBITDA margin LTM revenue growth1 16% • Highly recurring revenues and low customer churn due to mission critical software and services provided (10% organic) • The portfo
Slide 22: Continued strong trading across HgT's two largest holdings
Continued strong trading across HgT's two largest holdings HgT’s largest portfolio companies publish public reporting +20% 34% 12.7% +25% 114% 9.5% ARR growth EBITDA margin HgT portfolio ARR growth Net Retention Rate HgT portfolio • ARR reached an all-time high of €3 billion in Q1 2026, growing • Re
Slide 23: Track record of realisations at uplifts to book value
Consistent track record of generating realisations at uplifts to book value across market cycles £215m of realisations, 2025 Average uplift of 30% of full and partial realisations, 2016-2025 55% 49% 44% 10Y average uplift 27% 27% 25% 25% 23% 22% 20% 15% £112m of realisations, YTD 2026 2016 2017 2018
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 2025: £357m incl. £34m of co-investment YTD 2026: £133m incl. £46m of co-investment Figures relate to HgT’s share of transactions. A
Slide 25: 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 $22.1bn 47% 70% 24.0x equity equity EV/ LTM EBITDA $15.9bn $13.7bn $10.9bn 53% 30% 7.2x $4.1bn $4.1bn
Slide 26: Balance sheet and outstanding commitments
Balance sheet and outstanding commitments Total outstanding commitments of £2.1bn, of which £1.6bn relates to recent commitments to Hg’s 25/26 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 l
Slide 27: Summary and outlook
Summary and outlook Resilient trading performance underpinned by the mission-critical nature of products and services provided by portfolio companies Public software valuations have diverged from fundamentals Recent transactions at uplifts to carrying value demonstrate the continued attractiveness o
Slide 28: Further resources
Further resources Matthew Brockman on what’s really Six possible things before breakfast Orbit: an Hg podcast happening in software right now HgT website: https://www.hgcapitaltrust.com/ Hg website: https://hgcapital.com/ HgT LinkedIn: https://www.linkedin.com/company/hgcapital-trust-plc Orbit podca
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