LONDON, UK: HgCapital Trust plc (HGT), a listed investment trust managed by Hg, has announced its participation in the next growth stage of GGW Group, one of Europe’s leading insurance brokers for small and medium-sized businesses.
The deal, which is subject to regulatory approvals and expected to close in Q2 2024, follows an option for Hg funds to increase their stake in GGW. Hg has chosen to exercise this option and will co-own the business with Permira, another private equity firm.
The terms of the deal were not revealed.
HGT will invest about £44.2 million in GGW, while other Hg institutional clients will join the investment through the Hg Saturn 3 Fund.
HGT, whose shares trade on the London Stock Exchange, allows private and institutional investors to access all of Hg’s investments.
These numbers only reflect HGT’s portion of Hg’s total investment in GGW Group.
HGT’s available liquid resources for future investments (including all announced deals, the unused bank facility and the interim dividend paid in October 2023) are estimated at £709 million (31% of the pro-forma NAV of £2.3 billion as of 30 September 2023).
The investment will lower HGT’s remaining commitments to invest in Hg deals to about £808 million (35% of the pro-forma NAV as of 30 September 2023).