HgT — NAV rebound continued into Q325
07/11/2025
HgT has reported its Q325 results with a 2.4% increase in NAV per share, which marks a continuation of the rebound seen in Q225 following the negative impact of a weaker public market environment in Q125. HgT’s NAV total return (TR) for the first nine months (9M25) was therefore 1.9%. A continued positive contribution from portfolio earnings growth (4.3pp positive impact on portfolio valuation in Q325) and 1.4pp of fx tailwinds were partly offset by lower valuation multiples and higher net debt across HgT’s portfolio. Last 12-month revenue and EBITDA growth to end-September 2025 across HgT’s portfolio remains consistently in double-digit territory at 18% and 19%, respectively (of which 11% and 16% are organic growth). This is coupled with a sustained strong average EBITDA margin of 33%. Hg’s head of research highlighted that the 13% increase in Q325 earnings forecasts for listed software businesses only partially flowed into prices, leading to an 8% contraction in public market multiples. HgT maintained a strong long-term track record with five- and 10-year NAV TR to end-September 2025 of 14.5% and 17.8%, respectively. Based on the last closing price, HgT’s shares trade at a 13.6% discount to end-September 2025 NAV.
Uncovering Trusts – HgT: A deep dive into selected portfolio holdings and H125 results
25/09/2025
In this episode, our director of content, investment trusts, Milosz Papst provides a detailed overview of four portfolio holdings of HgT. He starts with IFS, a provider of cloud enterprise software and industrial AI applications across multiple sectors including enterprise resource planning, enterprise asset management, field service management and enterprise service management for asset-heavy industries, such as aerospace and defence, energy utilities and resources, construction and engineering, manufacturing and telecoms. He then covers P&I, a provider of an integrated HR cloud platform to small and medium-sized enterprises, primarily in Germany. He also delves into Ideagen, a provider of compliance software to organisations operating in highly regulated industries, such as life sciences, healthcare, banking and finance,and insurance. Milosz also covers a more recent investment made by HgT in 2024 in AuditBoard, a modern, cloud-native connected risk platform changing the way enterprises automate, collaborate and report in real time on risk, audit and compliance workflows. He concludes by discussing the key highlights of HgT’s recently published H125 results.
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HgT — Public market volatility weighing on H125 return
06/08/2025
HgT’s muted -0.3% NAV total return (TR) in H125 (according to its preliminary trading update) was negatively affected by public market volatility that reduced HgT’s private portfolio valuations by 4pp. That said, it represents a NAV rebound in Q225 following the -2.0% TR in Q125. Last 12-month (LTM) revenue and EBITDA growth to end-May 2025 across HgT’s entire portfolio were both a robust 19%, translating to a 7pp positive effect on portfolio value. Minor headwinds came from fx changes and higher portfolio net debt (1pp NAV impact each). Gross realisation proceeds reached £165m (7% of opening NAV), which according to Hg compares favourably with peers in a challenging environment. Investments (including reinvestments) stood at £306m, or 12% of opening NAV.