HgCapital Trust Allocates £7 Million to Manchester-Based Street Group, PropTech Firm Valued Over £200 Million

Street Group’s Software Platform and Position in the UK Property Market

Founded in 2015 by siblings Tom and Heather Staff, Street Group operates as a vertical software provider focused on the UK residential property sector. The company offers interconnected digital tools tailored for estate and letting agents nationwide. Its flagship product, Street.co.uk, is a CRM system designed specifically for property professionals, complemented by Spectre, a platform for prospecting and lead generation that enhances agents’ ability to identify and convert clients.

Street has also developed AI-native products, notably Cortex, which allows customers to create and manage custom AI agents, positioning the company at the forefront of AI integration within UK PropTech. Serving thousands of agency branches and employing over 200 staff, Street has earned multiple industry accolades, including Best Overall Supplier at the EA Masters, highlighting its innovation and strong customer satisfaction.

HgCapital Trust’s £7 Million Investment and Capital Position

HgCapital Trust’s £7 million investment represents its portion of a larger funding round in Street Group, undertaken alongside other Hg institutional clients through the Hg Mercury Fund. This syndication approach enables diversified exposure across Hg’s portfolio while sharing capital commitments among partners.

Post-investment, HgT’s liquid resources for future deployment stand at approximately £278 million as of the pro-forma 31 March 2026 date, equating to 12% of its £2.4 billion net asset value. This includes all announced deals, undrawn bank facilities, and the full-year dividend payable on 12 May 2026. Concurrently, HgT’s outstanding commitments to Hg transactions reduce to around £2.1 billion, or 87% of the pro-forma net asset value, indicating substantial capital deployment across existing investments.

Hg’s Investment Strategy and Partnership with Street Group

Hg, the lead investor, is a prominent investor in European and transatlantic software and services companies, with expertise in AI-driven value creation within private equity. Managing assets over $110 billion and a portfolio of roughly 60 businesses valued at more than $190 billion, Hg’s companies employ over 140,000 people and achieve annual revenue growth exceeding 16%.

Hg’s investment thesis for Street Group highlights its category leadership, technical differentiation, and deep integration into customer workflows. The firm values Street’s high customer satisfaction, AI capabilities, and innovative culture fostered by its founders. Hg’s operational support aims to accelerate product development, enhance AI capabilities, and help Street realize its ambition to become the leading software and AI platform for UK estate and letting agents while preserving its customer focus and culture.

Founders Retain Majority Control and Leadership

Co-founders and co-CEOs Tom and Heather Staff retain majority ownership and will continue leading Street Group, ensuring operational continuity and strategic stability. Unlike many growth capital deals where investors gain controlling stakes, this investment supports the founders’ vision while leveraging Hg’s expertise and market insight.

The founders emphasize their commitment to transforming estate and letting agency operations through AI, aligning closely with Hg’s long-term ambitions and operational strengths. The capital will accelerate product innovation, technology infrastructure, and talent acquisition, while maintaining Street’s customer-centric values and award-winning reputation.

AI Innovation and Market Differentiation

Street Group’s competitive edge in UK PropTech stems from its AI-native products and technical expertise. Cortex, its AI agent orchestration platform, enables clients to build customized AI agents tailored to specific workflows, setting Street apart from legacy software providers.

Hg’s investment is designed to fast-track Street’s AI product development, expand technical talent, and enhance features within Cortex and complementary tools. This positions Street to capitalize on the growing shift toward AI-enabled platforms in property services, strengthening its market leadership as AI adoption accelerates.

Previous Support from PXN Group and Advisory Assistance

Before Hg’s involvement, Street Group received funding and support from PXN Group, a Manchester-based venture capital firm focused on high-growth Northern England businesses. PXN’s backing helped Street progress from its founding in 2015 to its current growth phase.

Advisory services for this transaction were provided by Alvarez and Marsal, assisting Street Group through negotiation and documentation. Specific transaction terms remain confidential, consistent with private growth capital norms, while valuation and investor details have been disclosed for market transparency.

HgCapital Trust Structure and Access to Hg’s Investment Pipeline

HgCapital Trust plc (LSE:HGT) offers public and institutional investors liquid access to a portfolio of high-growth unquoted companies managed by Hg. This trust structure allows shareholders to participate in Hg’s full investment pipeline via a single listed vehicle, contrasting with traditional private equity funds that typically lock in capital for extended periods.

Managed by Hg, a seasoned private equity firm with a strong track record across European and transatlantic markets, HgT’s investment in Street exemplifies its model of deploying shareholder capital into Hg-sourced opportunities while maintaining liquidity and diversification. The investment alongside other Hg institutional clients through the Hg Mercury Fund reflects common syndication practices that distribute capital exposure and mitigate concentration risk.

UK PropTech Market Trends and Transition from Legacy Software

The UK property services sector is undergoing a significant shift from legacy software to cloud-native, AI-enabled platforms that enhance efficiency and customer experience. Street Group is well-positioned at the forefront of this transition, offering an integrated alternative to fragmented legacy solutions used by many estate and letting agents.

Hg’s investment signals institutional confidence in this durable market shift driven by evolving customer needs, technological advances, and competitive dynamics. As agents increasingly adopt AI-integrated platforms, Street’s early market positioning offers a competitive advantage and growth potential. The capital will support accelerated product development and market expansion during this pivotal transition.

Capital Deployment and Implications for HgT Investors

The Street Group investment represents a significant allocation of HgT’s capital, reducing liquid resources but increasing exposure to growth-stage UK technology firms. With approximately £278 million in liquid capital remaining post-investment, HgT retains flexibility for future opportunities while maintaining prudent liquidity buffers.

Outstanding commitments of about £2.1 billion, or 87% of net asset value, indicate most capital is already allocated to existing and announced investments. This suggests the trust’s portfolio will continue expanding as committed capital is deployed, with limited capacity for substantially larger new commitments without capital realizations or additional funding. Investors may monitor capital realizations to gauge reinvestment potential and growth prospects. The Street investment underscores Hg’s ongoing ability to source high-quality growth opportunities in technology and services sectors, relevant to medium-term return expectations for HgT shareholders.