LONDON, UK: HgCapital Trust plc (HGT), a listed investment trust that invests in software and service businesses, has announced that it has agreed to sell part of its stake in TeamSystem, a leading provider of business software solutions in Italy and Spain, to two new investors.

According to a press release, a subsidiary of the Abu Dhabi Investment Authority (ADIA) and CapitalG, Alphabet’s independent growth fund, will acquire minority stakes in TeamSystem. Hg, the manager of HGT, will remain as a minority investor in the business.

The terms of the deal have not been disclosed, but it is expected to close in the first quarter of 2024, subject to regulatory approvals and other conditions.

The transaction values HGT’s investment in TeamSystem at approximately £33.3 million, which is an uplift of £13.5 million (68% or 2.9 pence per share) over the carrying value of £19.8 million in the net asset value (NAV) of HGT at 31 March 2023.

The pro-forma NAV of HGT, based on the reported NAV at 31 March 2023, is expected to be £2.17 billion (or 474.3 pence per share). HGT’s available liquid resources, which include a £350 million bank facility for future investments, are estimated to be £689 million (32% of the pro-forma NAV).

HGT is a listed investment trust that gives private and institutional investors the opportunity to participate in all Hg’s investments. Hg is a specialist private equity investor focused on software and service businesses.

TeamSystem is a leading provider of business software solutions to businesses and accountants in Italy and Spain. It offers cloud-based products for accounting, payroll, tax, enterprise resource planning, and human capital management.