Hg, the Manager of HgCapital Trust plc (the "Company"), has announced today an investment in Financial Express ("FE"), a leading data, analytics and software vendor focussed on the European retail investment funds market. The terms of the transaction were not disclosed.
HgCapital Trust plc will invest approximately £7.5 million in FE, with other institutional clients of Hg investing alongside the Company through the Mercury 2 Fund.
The Company, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.
Based on the 30 April 2018 NAV, the Company's liquid resources available for future deployment, including all announced transactions, are estimated to be £145 million (20% of the 30 April 2018 pro forma NAV of £712.8 million). In addition, the Company has access to an £80 million standby facility, which is currently undrawn. The investment will reduce the Company's outstanding commitments to invest in Hg transactions over the next four to five years to approximately £587 million.
Hg makes strategic investment in FE
14 May 2018. Hg today announces a significant investment in FE, a leading data, analytics and software vendor focussed on the UK and Australian retail investment funds markets.
The terms of this transaction were not disclosed. Completion of this transaction is subject to regulatory approval.
Founded by Michael Holland and Craig Wilson, FE is a leading provider of investment data, research and software to the financial services industry in the UK and operates a proprietary database of complete retail funds data with global coverage and history, built up over 20 years. Trusted by hundreds of thousands of investors, advisers, asset managers and platforms who use FE data, software and investment advice every day, FE is a leading player in supporting the UK fund industry.
The investment will be made from the Mercury 2 Fund. FE has a number of business characteristics that Hg looks for, including a strong position in the wealth / asset management software and data sector, a well-recognised brand, mission-critical products, and a strong management team led by Neil Bradford.
The investment comes on the back of significant expansion of FE's global operations and product offering over the past few years, and another year of record growth for the company in 2017.
Sebastien Briens, Partner at Hg, said: "We have been following FE for a number of years, and have been impressed by the strength and depth of its data, products, team and vision. We are very pleased to partner with Michael, Craig and Neil in the next stage of growth for the business."
Neil Bradford, CEO at FE, said: "Hg's track record and experience in our sector means they are the perfect partner to continue FE's growth strategy and international expansion ambitions. We look forward to working with the Hg team."
Michael Holland, co founder of FE, said: "Data is at the foundation of everything we do and Hg has a deep understanding of the fund data space. I am confident that this partnership will hugely benefit our clients."
FE was advised by Portico Capital (M&A), Travers Smith (legal) and EY (finance/tax).
Hg was advised by Cardean Bell (M&A), Linklaters (legal) and Deloitte (finance/tax).
For further details:
Hg
Laura Dixon +44 (0)20 7089 7888
Maitland
Vikki Kosmalska and Seda Ambartsumian +44 (0)20 7379 5151
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange (ticker: HGT.L). The Company is a client of Hg, giving investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. New investments and existing portfolio companies are 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. For further details, please see www.hgcapitaltrust.com.
Neither the contents of HgCapital Trust's, Hg's, Financial Express' websites nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.
