HGCapital Trust PLC · LSE:HGT
HGCapital Trust — FY2025 Earnings Presentation
35 slides from HGCapital Trust's earnings presentation, March 2026
Slide 1: Full year 2025 results
Full year 2025 results Get connected to a universe of software and services businesses This document accompanies the annual report to 31 December 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 b
Slide 2: Hg at a glance: 30+ year track record
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 c.430 Offices in London, Munich, employees including >250 As at 31 December 2025; past performance is not indicative of future per
Slide 3: The valuation of public software has fallen to a 20-year low relative to the market
The valuation of public software has fallen to a 20-year low relative to the market Software NTM Price:Earnings ratio relative to the market Peak: 2.39x 2.6 October 2021 2.2 1.8 Long-term average: 1.56x 1.4 1.0 GFC trough: 1.03x 27 Feb 2026: 0.98x January 2009 0.6 2006 2007 2008 2009 2010 2011 2012
Slide 4: Even though software growth remains well above wider market
Even though software growth remains well above wider market Software earnings versus market Software 900 800 700 600 500 400 Market 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Note: Past performance is not a reliable indicator of
Slide 5: HgT's share price has been negatively impacted by the software sell-off
HgT’s share price has been negatively impacted by the software sell-off Share price -24% YTD with discount to NAV widening to 28% HgT share price and NAV per share, 1Y 600 HgT’s response to the sell-off: 550 • Accelerated the release of the company’s 2025 trading statement 500 • Initiated share buyb
Slide 6: We do not believe the sell-off is reflective of fundamentals
We do not believe the sell-off is reflective of fundamentals, or what we see across the HgT portfolio Strong trading: trading remains robust across the HgT portfolio, with LTM revenue and EBITDA growth of 17% / 19% including M&A 1 (11% / 17% organic)1 and an EBITDA margin of 33% Hg valuation methodo
Slide 7: In the long-run, earnings growth is what drives returns in software
In the long-run, earnings growth is what drives returns in software 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% Returns from multiple -30% -600% Returns from earnings -40
Slide 8: AI has the potential to expand the addressable market for software incumbents
AI has the potential to expand the addressable market for software incumbents, penetrating the services market and the labour budget Global Labour Market ~$60 trillion annual wages & salaries Software ~$1tn (1.7% of labour) Note: For illustrative purposes only. 8 Source: World Bank National Accounts
Slide 9: We are still early…
We are still early… Note: For illustrative purposes only. 9 Source: Damian Player; https://global-ai-adoption.netlify.app/
Slide 10: The 4Ds of workflow automation
The 4Ds of workflow automation: Hg believes its current portfolio can be a net beneficiary of AI – “SaaS plus AI” rather than “Saas vs AI” Deterministic Data Domain Distribution Mission-critical Proprietary datasets Deep vertical-specific Frequent engagement processes requiring such as tax filings,
Slide 11: Recent announcements suggest AI is not eating SaaS — it is partnering with it
Recent announcements suggest AI is not eating SaaS — it is partnering with it SaaS platforms 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 workflow…We're providing infras
Slide 12: 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 ✓ ~20 data and AI specialists in-house ✓ 80+ elite software developers, product managers ✓ Category leading SaaS and designers ✓ Proprietary data ✓ Dedicated tiger teams ✓ Domain
Slide 13: GenAI is actively driving impact for our portfolio
GenAI is actively driving impact for our portfolio, with promising results in early examples >1,600 projects live across the portfolio c.60 portfolio companies actively deploying GenAI >40 agentic products and features launched 2x AI-enabled exits ~80% average uplift 1 Note: For illustrative purpose
Slide 14: 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 £2.3bn market capitalisation Investment strategy focused on profitable and growing Resilient business models with highly +18.9% p
Slide 15: 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 >$185bn EV of Hg HgT’s underlying Hg’s largest Software "Inc" >$110bn Hg’s portfolio shareholder base LP investor AUM compan
Slide 16: 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 17: 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 18: 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 c. 60 businesses repeated investments and deployed equity Our verticals Our current portfolio Years focused No. of
Slide 19: We have 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 20: HgT FY 2025 results
HgT FY 2025 results
Slide 21: 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 £2.6bn £2.3bn 18.9% Net assets Market capitalisation p.a. 17.0% p.a. 561.5p 507.0p NAV per share Share pric
Slide 22: Strong trading continued to be the main driver of performance in FY 2025
Strong trading continued to be the main driver of performance in FY 2025 At 31 December 2025. Gross portfolio value before the deduction of fund-level liabilities. 22 Past performance is not a reliable indicator of future results.
Slide 23: HgT portfolio overview at 31 December 2025
HgT portfolio overview at 31 December 2025 Hg ‘cluster’ by value Top 10 Location Sub-sector Website % Portfolio Insurance ERP & Payroll Tax & 8% 28% 1 Norway Accounting / visma.com 11.9 Tech Services >60 ERP & Payroll 4% Automation & 2 Sweden ERP & Payroll ifs.com 9.6 Engineering 2% 3 UK ERP & Payro
Slide 24: Continued strong trading from "Rule of 40+" portfolio
Continued strong trading from “Rule of 40+” portfolio HgT has a "Rule of 45" portfolio: +11% organic sales growth and 34% organic EBITDA margin LTM revenue growth1 17% • Highly recurring revenues and low customer churn due to mission critical software and services provided (11% organic) • The portfo
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 47% 71% 25.2x $19.8bn equity equity EV/ LTM EBITDA $14.7bn $10.4bn $8.0bn 53% 29% 7.4x $1.6bn $3.3bn $
Slide 26: Continued realisation activity despite a challenging environment for exits
Continued realisation activity despite a challenging environment for private equity exits £215m of realisations, 2025 HgT realisations as percentage of opening NAV 25% 20% Average 19% 15% 10% 5% £93m of realisations, YTD 2026 0% 2021 2022 2023 2024 2025 Past performance is not a reliable indicator o
Slide 27: HgT has continued to realise investments at uplifts to book value
HgT has continued to realise investments at uplifts to book value, despite a challenging exit market Uplifts on recent “AI-enabled” exits have been particularly strong HgT uplifts, L10Y HgT has delivered an average uplift of 30% on all full 55% and partial realisations over the last 10 years HgT ave
Slide 28: HgT has continued to invest selectively
HgT has continued to invest selectively £357m invested during 2025, including £34m of fee-free co-investment Investing further capital into high conviction long-term compounders to support their next leg of growth 2025 £357m New investments in founder-led businesses with significant value creation p
Slide 29: New commitments to the most recent vintage of Hg funds
New commitments to the most recent vintage of Hg funds Sizing of commitments relative to NAV is in-line with previous vintages. 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 2027/2028 (Genesis 11 and
Slide 30: Balance sheet and outstanding commitments
Balance sheet and outstanding commitments HgT’s capital allocation “toolbox” to manage liquidity Pro-forma balance sheet, Feb 2026 across market cycles • Fund commitments: foundation of investment strategy providing exposure to all Hg investments • Co-investment: option to deploy additional capital
Slide 31: Manager's outlook
Manager’s outlook The HgT portfolio’s resilient trading performance is underpinned by the mission-critical nature of products and services provided by portfolio companies Despite the recent sell-off in public markets, fundamentals for enterprise software companies remain positive, suggesting that re
Slide 32: 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 33: 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 34: 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 35: 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