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HgCapital Trust (LSE:HGT), a FTSE 250-listed company focused on European and transatlantic software and services businesses, reported a 6.4% increase in net asset value (NAV) during the first half of the year. The growth was driven by strong double-digit revenue and profit growth across its top 20 holdings.
NAV per share rose to 527.9p from 500.5p at the start of the period, bringing total net assets to £2.4bn. The company delivered a share price total return of 12.7% over the same period, reflecting a market capitalization of £2.2bn.
In the first half, HgCapital Trust committed £310m to new and follow-on investments, with another £183m in transactions signed and anticipated to close in the second half of the year. During this period, the company recorded £348m in gross realisations, with full and partial realisations achieving an average uplift of 16% on carrying value.
Chair Jim Strang commented on the results, stating, "HgCapital Trust delivered another solid performance over the first six months of the year, successfully navigating challenging private market conditions." He highlighted the strong underlying trading within the portfolio, noting that the top 20 holdings, which represent 78% of the portfolio, experienced sales growth of 19% and EBITDA growth of 26%.
Looking ahead, the company expressed confidence in its future potential, particularly in workplace automation markets. As enterprises continue to focus on productivity improvements and manage rising labor costs, the company's strategy appears well-positioned to benefit from these trends.
The firm emphasized the value of combining the long-term nature of private equity with businesses that exhibit robust double-digit growth, which is expected to support continued strong performance over time.
HgCapital Trust's ability to maintain a positive trajectory in challenging market conditions, alongside its strategic focus on high-growth sectors, underlines its optimistic outlook for sustained growth in the future.
