LONDON: HgCapital Trust plc reported a rise in its net asset value for the quarter ended Sept. 30, 2025, driven by robust trading within its portfolio of unquoted European technology firms, the company announced Thursday.
The trust, which offers a listed vehicle for investing in companies managed by private equity firm Hg, saw its NAV per share increase by 2.4% over the quarter to £5.50. Total net assets stood at £2.5 billion.
Despite the NAV growth, the company’s share price decreased by 2.7% during the quarter to £4.99, resulting in a market capitalization of £2.3 billion.
Strong operational performance across its investments contributed 4% to portfolio growth in the quarter, according to the statement. This was partially offset by lower valuation multiples and an increase in net debt. The portfolio companies collectively reported sales growth of 18% and EBITDA growth of 19% over the last 12 months, maintaining a strong EBITDA margin of 33%.
“Trading performance across the portfolio continues to be strong and in-line with that seen in recent quarters,” the trust said in its earnings release.
The period also saw active portfolio management. Realizations totaled £7 million, primarily from the partial sale of Trackunit. Following the quarter’s end, the exit from GTreasury is estimated to return £30 million to the trust at a 97% uplift to its carrying value.
New investments during the quarter amounted to £49.7 million, led by a commitment to A-LIGN, a cyber compliance services provider. An additional investment of approximately £17 million in Payworks was completed after the period ended.
HgCapital Trust stated it maintains a robust balance sheet with £379 million in available liquid resources, representing 15% of its NAV. The trust has commitments of £1.7 billion to Hg funds, which it expects to invest over the next four to five years.
The announcement highlighted the trust’s long-term performance, noting that a £1,000 investment 20 years ago would be worth £13,364 today, assuming dividend reinvestment, compared to £3,762 for an equivalent investment in the FTSE All-Share Index.
Hg, the trust’s manager, continues to screen an “attractive pipeline of investment opportunities,” and further liquidity events from portfolio companies are anticipated over the next six to twelve months.