HgT – equity proposition
11/08/2026
HgT is a private equity investment company that invests in leading, profitable, unquoted European mid-market businesses with an international footprint. These companies offer software solutions to small and medium-sized enterprises and benefit from a high share of recurring revenues based on software-as-a-service subscription models and high customer retention. HgT is managed by Hg, Europe’s leading private equity technology investor, which is well-positioned for the agentic AI opportunity. It provides public market investors with exposure to Hg’s portfolio of around 60 such holdings, representing more than $190bn in aggregate enterprise value. We highlight the key points of HgT’s investment story. HgT’s earnings growth is underpinned by the secular digitalisation trend. Hg has a dedicated AI product incubator. HgT’s portfolio companies have multiple competitive moats. The ‘skin in the game’ of insiders is set to increase. HgT has delivered a high level of liquidity events. For further details, please refer to our latest research on HgT.
HgT — HgT’s NAV stabilises in Q226
10/08/2026
HgT published its preliminary trading update for H126, reporting that its portfolio delivered a last-12-month (LTM) revenue and EBITDA growth (based on latest available data) of 16% and 19%, respectively (of which 11% and 17% was organic, respectively), at a strong average EBITDA margin of 34%. Average net debt to EBITDA across its portfolio fell to 6.9x from 7.4x at end-2025. The robust contribution from underlying portfolio performance (broadly consistent with 2025 performance and adding 6pp to HgT’s Q226 NAV performance) was partly offset by a negative 5pp impact from a further fall in peer multiples amid continued investor uncertainty related to AI’s effect on the software industry. Weighted average EV/EBITDA across HgT’s portfolio was 22.9x versus 25.2x at end-2025. We believe that HgT is well-placed to benefit from the AI augmentation of software products across its portfolio, see our previous research for details. NAV total return (TR) in Q226 came in at 0.5%, which resulted in a NAV TR of -4.9% in H126. Following the sell-off in public software, HgT’s shares trade at a historically wide discount to NAV of 25%.
HgT — Key takeaways from the 2026 CMD
11/06/2026
During HgT’s recent capital markets day (CMD), Hg (HgT’s manager) reiterated its confidence in the generational opportunity for software companies arising from the rollout of agentic AI products. Hg’s AI imperatives for each of its portfolio companies in 2026 include: 1) a threefold increase in engineering productivity, 2) a 40% automation rate of support functions, 3) a 70% penetration rate of AI tools, 4) a 2pp increase in EBITDA margin, and 5) a more than 10% share of AI products in new bookings. Hg remains committed to investing in its eight core clusters, focusing on businesses that are segment leaders with top product-led management teams, deep domain and product complexity and a favourable competitive context that delivers mission-critical solutions with a high cost of failure.