Sparks - HgT

Ahead of HgT’s capital markets day, Hg (its investment manager) announced a strategic investment programme aimed at increasing the equity stake of Hg’s partners, employees and Hg’s balance sheet in HgT from the current c 6% to more than 15% over the medium term via on-market purchases. This follows meaningful earlier ‘internal’ buying of HgT’s shares in the year to date, including c £20m investments of Hg partners and employees (who in aggregate have become the third-largest position of HgT’s shareholder register), purchases from all seven of HgT’s non-executive directors as well as £19m spent on share buybacks initiated on 6 February 2026 (c 1.0% of share capital). Moreover, following a widening of HgT’s discount to NAV, Valhalla Ventures (the investment vehicle of Preqin founders Mark O’Hare and Lindy O’Hare) built up a stake of more than 9.0% in HgT earlier this year. 

Hg believes that the market materially undervalues HgT’s shares and its future prospects. As highlighted in our latest update note, we believe that HgT is well-placed to benefit from the AI augmentation of software products across its portfolio. Hg’s agenda is supported by Hg Catalyst, a dedicated AI product incubator with more than 100 engineers, designers and product managers, which is part of a broader team of more than 150 AI value creation experts. Hg highlighted that there are more than 1,600 AI projects across Hg’s portfolio (representing c $260m of budgeted positive EBITDA impact as of end-2025), and 100 AI products were built to date, with 20% of portfolio companies now generating more than 10% of new bookings from AI.