Hg to increase strategic investment in HgT
Summary by AI BETAClose X
Hg reaffirms AI leadership and announces intention to increase strategic investment in HgT
Hg to update the market on continued investment to deepen AI leadership position
Having made its first investment in AI capabilities a decade ago, Hg is now deploying AI at scale across Europe's largest private software portfolio. HgCapital Trust plc ("HgT") will host a Capital Markets Day today at which further details will be provided.
Highlights include:
· ~100 AI builders working for Hg Catalyst, Hg's AI incubator, as part of Hg's wider team of 150+ AI Value Creation experts
· 1600+ AI projects representing ~$260m[1] of budgeted EBITDA impact across the portfolio, a 5x increase since 2024
· 100+ AI product builds to-date
· ~20% of portfolio companies are generating over 10% of new bookings from AI
· Partnerships with AI labs and scale-ups from 2023 onwards, many of which were private equity industry firsts, including Anthropic, Replit, Cognition, Forethought, Fin (formerly Intercom) and Clay
Hg to make an increased strategic investment in HgT
The start of 2026 saw a sharp and indiscriminate sell-off in public market software companies, with the IGV software index reaching a trough of -29% for the year on 10 April. Following recent company announcements, in particular around the positive impact of AI initiatives from several index constituents, the IGV index has staged a strong recovery up 40% since 10 April, delivering YTD performance broadly flat at -1% to 2 June 2026.
HgT's share price performance was also negatively affected by the sell-off, reaching a low of -36% for the year to 21 May. HgT's share price has since partially recovered but has lagged the index and remains -21% for the year to 2 June 2026.
Hg, the Manager of HgT, believes that the current share price materially undervalues the HgT portfolio, and its future prospects. Hg today announces 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 the medium term, through on-market purchases.
JB Brian, Hg's Co-CEO, comments, "AI represents a generational value creation opportunity for software. For companies which are deeply embedded in the workflows of their customers, with proprietary data, distribution and domain expertise, the opportunity to compound that value through AI is as exciting as anything we have seen in the last 25 years of investing in technology."
Steven Batchelor, Hg's Co-CEO, comments, "We have always believed that having skin in the game is the best way to demonstrate our alignment with clients. The partners and staff of Hg already have £600m+ invested in our current portfolio alongside HgT via our funds, and have agreed another £800m+ irrevocably committed into the new vintage of funds which we have just successfully raised. This will be invested in new opportunities and will benefit from this generational opportunity for our businesses to expand their addressable markets. My partners and I are excited to have an opportunity to further increase our exposure via on-market purchases of HgT shares at this deep discount, and continue to strengthen our alignment with HgT shareholders and all Hg's clients."
Capital Markets Day programme
HgT will host a Capital Markets Day for professional investors and analysts from 14:00-17:00 BST today at the Institution of Engineering and Technology in London.
The event will focus on how AI is reshaping and expanding the market opportunity for software investors today, and the characteristics and execution required for businesses to capture this opportunity.
Presentations will cover Hg's approach to product-led investment and AI-first value creation, with an update on the projects being led by Hg Catalyst, Hg's AI product incubator. Portfolio examples and conversations with management teams will illustrate how AI is already driving significant value across HgT's holdings.
The programme will also address the recent volatility in public market software and sector valuations.
The event will be hosted by Jim Strang, Chairman of HgT, with presentations from members of Hg's senior leadership and investment teams, including:
· JB Brian, Managing Partner and Co-CEO
· Luke Finch, Partner and Head of Client Services
· Ben Maiden, Partner and CFO
· Juan Campos, Partner and Head of Capital Markets
· Dr Amr Ellabban, Head of Data & AI
· David Toms, Head of Research
Portfolio sessions will include a conversation with Ben Richmond, CEO and Founder, CUBE, and a presentation from Matt Rodgers, Executive Vice President Europe, OneStream.
Presentations and video recordings will be made available after the event on the company's website.
-Ends-
For further information, please contact:
HgCapital Trust
George Crowe
+44 7774 617 150
Laura Dixon
+44 78 2459 2894
Cadarn
Lucy Clark
lucy@cadarncapital.com
+44 (0)7984 184 461
David Harris
david@cadarncapital.com
+44 (0)7368 883 211
Hg
Tom Eckersley
Sam Ferris
About HgCapital Trust plc
HgCapital Trust plc is an investment company whose shares are listed on the London Stock Exchange (HGT.L). HGT gives investors exposure, through a liquid vehicle, to a portfolio of high-growth unquoted companies, managed by Hg, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors.
About Hg
Hg is a leading investor in European and transatlantic technology and services businesses. We help to build sector-leading enterprises that supply critical software applications or workflow services to deliver intelligent automation for their customers.
We take an active approach to value creation, combining deep end-market knowledge with world class operational resources to provide compelling support to entrepreneurial leaders looking to scale enduring businesses.
With a vast European network and strong presence across North America, Hg has approximately $110 billion in assets under management and more than 400 employees. Our portfolio spans around 60 companies worth over $190 billion in aggregate enterprise value, employing more than 140,000 people and consistently growing revenues at more than 16% annually.
For further details, see hgcapitaltrust.com and hgcapital.com
[1] As at 31 December 2025. Aggregate benefit across the Hg portfolio, identified by surveyed portfolio companies from AI-supported initiatives. Not a forecast of absolute EBITDA improvement; gains may be reinvested, offset by other factors, or form part of a broader efficiency programme.
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