LONDON: HgCapital Trust plc (LSE: HGT), a London-listed private equity investment trust, has announced a £48 million investment in A-LIGN, a Tampa-based cybersecurity compliance firm, as part of a broader strategic acquisition by Hg, a leading investor in software and services businesses.
The transaction, funded through the Hg Genesis Fund alongside other institutional clients, marks Hg’s acquisition of a majority stake in A-LIGN from Warburg Pincus. Financial terms of the deal were not disclosed.
A-LIGN, founded in 2009, is a category leader in cybersecurity compliance services, offering technology-enabled audits and assessments across SOC 2, ISO, HITRUST, FedRAMP, CMMC, and PCI standards. The firm serves over 5,700 clients globally and has achieved more than 50% compounded annual growth over the past 15 years.
HgCapital Trust’s investment represents a strategic move to support high-growth, tech-enabled service companies. Following the transaction, HgT retains approximately £412 million in liquid resources—17% of its pro-forma net asset value (NAV) as of March 31, 2025—and reduces its outstanding commitments to Hg transactions to £1.4 billion, or 57% of NAV.
Strategic Growth Amid Rising Cyber Threats
The investment comes at a time when organizations face escalating cybersecurity threats, particularly from AI-driven attacks. A-LIGN’s services help businesses navigate increasingly complex compliance landscapes and provide assurance to stakeholders that sensitive data and operations are secure.
“This new partnership comes at the perfect time as we enter our next phase of growth,” said Scott Price, CEO of A-LIGN. “Hg’s deep expertise in scaling tech-enabled services globally, combined with world-class operational resources, makes them the ideal partner to help us provide the best possible services to our customers.”
Hg partners Hector Guinness and Joris van Gool praised A-LIGN’s customer-first approach and proprietary technology platform, calling it “a sustainable source of competitive differentiation” that positions the company for expansion into new regions and service lines.
William Holmes, Principal at Hg, added: “A-LIGN has all the hallmarks of what Hg looks for in tech-enabled services investments, and we are excited to support Scott and his world-class team to become the global champion in cyber compliance services.”
Transition from Warburg Pincus
Warburg Pincus, which previously held a majority stake in A-LIGN, exits the investment following a period of transformative growth for the company.
“It has been a privilege to support Scott and the talented team at A-LIGN,” said Brian Chang, Managing Director at Warburg Pincus. “We’re proud of the company’s evolution into a market leader and look forward to its continued success.”
Advisory Roles
Jefferies LLC served as lead financial advisor to A-LIGN and Warburg Pincus, with Guggenheim Securities, LLC also advising. Harris Williams acted as financial advisor to Hg, while legal counsel was provided by Cleary Gottlieb Steen & Hamilton LLP for A-LIGN and Latham & Watkins LLP for Hg.