Hg Capital Trust: Fonds Finanz secures investment from Hg

10th December 2021 | Hg Capital Trust PLC

Hg, the Manager of HgCapital Trust plc (“HGT”), today announces an investment in Fonds Finanz, a leading tech-enabled financial intermediary pool in the German insurance sector. Terms of the deal are not disclosed.

HgCapital Trust plc will invest approximately £8.0 million in Fonds Finanz, with other institutional clients of Hg investing alongside HGT through the Hg Mercury 3 Fund.

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

Note that these figures only relate to HGTs share of Hg’s overall investment in Fonds Finanz.

HGT’s liquid resources available for future deployment (including all announced transactions, and equity raised via tap issuance) are estimated to be £303 million (16% of the pro-forma 30 September 2021 NAV of £1.9 billion).

The investment will reduce HGT’s outstanding commitments to invest in Hg transactions to approximately £410 million (22% of the pro-forma 30 September 2021 NAV).

Fonds Finanz secures investment from Hg to enable further tech innovation and expansion as a leading financial intermediary pool across Germany

Fonds Finanz, a leading tech-enabled financial intermediary pool focused on the German insurance sector, today announces that is has secured a majority investment from Hg, a leading software and services investor.

Founded in 1996 and headquartered in Munich, Fonds Finanz serves more than 28,000 customers including brokers, distributors, insureTechs and banks across Germany. With a comprehensive software, advisory and service offering, Fonds Finanz gives customers access to a full-service platform, comprising products from more than 500 insurance and financial product vendors in Life, Health, Property & Casualty and Investment funds.

Hg brings to the partnership an extensive network across the insurance sector in Germany and the United Kingdom. Partnering with Hg will enable Fonds Finanz to further optimise the business, with an opportunity to enter several additional customer segments, and to acquire attractive businesses to further broaden the Fonds Finanz service offering and to drive innovation by acquiring complementary technology.

Co-founders Norbert Porazik and Markus Kiener, will continue to run Fonds Finanz and will lead the future development of the company. Both founders remain significant shareholders in the business. The terms of the transaction are not disclosed.

Norbert Porazik, co-founder of Fonds Finanz, said: “This is another important milestone in Fonds Finanz’s over 25 years history. We warmly welcome the team from Hg. Together we see a significant opportunity to invest further to provide more customers, with more services, with better technology and across additional segments than has been possible previously.”

Markus Kiener, co-founder of Fonds Finanz, said: “I’m really proud of all the colleagues who have worked so hard to put us into this great position as a business. The future is looking very bright for the Fonds Finanz team, and for our customers as we will be increasingly better positioned to service their needs. We’re thrilled to partner with Hg, an expert tech and service investor who can project us forward on this journey.”

Benedikt Joeris, Director at Hg, said: “Fonds Finanz occupies a central position in the insurance eco-system across Germany. Over the last decade we’ve got to really know this sector and we instantly recognised Fonds Finanz as a high value-add channel for insurance companies. We’re really excited to support Fonds Finanz on its journey, not least because we think technology will play an ever increasing role for the business going forward.”

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