Hg Capital: Litera secures further investment from Hg

5th November 2021 | Hg Capital Trust PLC

Hg, the Manager of HgCapital Trust plc (“HGT”), today announces an additional investment into Litera, a global leader in legal technology solutions. The terms of the transaction are not disclosed.

HGT, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg’s investments.

The transaction will result in HGT investing approximately £28.2 million in Litera, alongside other institutional clients of Hg. The transaction represents an uplift on HGT’s current investment in Litera of £48.0 million (68%) or 10.8 pence per share over the carrying value of £70.1 million in the Net Asset Value (“NAV”) of HGT at 31 August 2021 NAV.

Note that these figures only relate to HGT’s share of Hg’s overall investment in Litera.

Based on the 31 August 2021 reported NAV, the pro-forma NAV of the Trust is expected to be £1.73 billion (or 388.5 pence per share). HGT’s liquid resources available for future deployment (including all announced transactions, and equity raised via tap issuance) are estimated to be £251 million (14% of the 31 August 2021 pro-forma NAV of £1.73 billion).

The investment will reduce HGT’s outstanding commitments to invest in Hg transactions to approximately £476 million (28% of the 31 August 2021 pro-forma NAV).

HGT will be announcing its Q3 results for 2021 on 15 November 2021.

Litera secures further investment from Hg

The investment will be used for further growth and to continue Litera’s long-term strategy to be the world’s most comprehensive provider of law firm software.

Litera, a global leader in legal technology solutions, today announces that Hg, a leading software and services investor and supporter of the expansion of Litera since 2019, will lead a further investment in the business.

Following this new investment, Litera will be well-positioned to continue on its long-term growth trajectory, receiving funding for further expansion into new areas and geographies, as well as continued investment into innovation to empower more legal teams, for more aspects of their daily workflow, with simplified technology.

The terms of the transaction are not disclosed.

Based in Chicago, New York and London, Litera is a leading provider of legal workflow and workspace technology worldwide. Litera’s software empowers users across the legal industry to generate, review and distribute high-quality content quickly and securely, from any device. Today, Litera supports thousands of document-intensive organizations across the globe, helping them to satisfy the complex demands of clients and regulators, using innovative technologies such as AI and machine learning.

Litera has seen significant growth since Hg first invested in 2019, having made 12 acquisitions to broaden its product and geographic coverage and now approaching more than 1,000 employees across 17 different countries. Litera also has gained over 10 times the number of users since Hg first invested, now serving over 15,000 customers.

Avaneesh Marwaha, Litera CEO, said:

“The last two years have seen Litera treble in size, serving many thousands of customers with more solutions and in more geographies. The velocity and complexity of this expansion has been made possible by an incredible team at Litera combined with a fantastic relationship with Hg, whose knowledge and impressive network in legal tech has presented numerous opportunities for the business. We are delighted that Hg is committing further investment into the business to provide Litera with even more firepower to enable us to continue this trajectory for many years to come.”

Jean-Baptiste Brian, Partner, Ben Meyer, Partner and Hector Guinness, Director at Hg, said:

“Litera has grown significantly since we first backed the business in 2019, but we are just getting started. There is still enormous opportunity to support further productivity improvement in law firms with modern software. Litera’s position as the ‘Vendor of Choice’ for law firm CIOs, their highly talented team and well-invested products means that the business is an ideal platform to continue to support this theme for many years to come. At Hg we value long-term relationships where we can build true, scaled platforms that are champions in their sectors. We see this potential in Litera and we are excited for the future.”

Below is a short animated clip which provides highlights of the recent interim results