Hg announces investment in Waystone Group

24th January 2022 | Hg Capital Trust PLC

Hg, the Manager of HgCapital Trust plc (“HGT”), today announces an investment in Waystone Group, a leading provider of institutional governance, risk, and compliance services to the asset management industry.

The terms of the transaction are not disclosed. The investment is subject to regulatory approval and customary closing conditions.

HgCapital Trust plc will invest approximately £31.8 million in Waystone Group, with other institutional clients of Hg investing alongside HGT through the Hg Saturn 2 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 Waystone Group.

HGT’s liquid resources available for future deployment (including all announced transactions, and equity raised via tap issuance) are estimated to be £293 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 £365 million (19% of the pro-forma 30 September 2021 NAV).

HGT will be announcing its full year results to 31st December on 7 March 2022.

Waystone completes investment from Montagu and announces new strategic investment from Hg

Montagu and Hg will become co-controlling investors, supporting Waystone to further scale its global platform for fund governance solutions

 Waystone Group, a leading provider of institutional governance, risk, and compliance services to the asset management industry, today announce that Montagu, a leading private equity firm, has completed its investment in Waystone, and Hg, a leading global software and services investor, will join as a strategic investor and joint shareholder. Montagu first announced its investment in Waystone in July 2021. Hg’s investment is subject to regulatory approval and customary closing conditions

Founded in 2000 and based in Dublin, Waystone serves clients with assets under management totalling more than US$1 trillion, delivering the tools and expertise to manage their governance and regulatory requirements, enabling them to focus on their core business. It has achieved global scale through a series of carefully planned acquisitions, and today provides an extensive range of services and solutions across multiple international jurisdictions.

Montagu and Hg will partner with the company’s strong management team, led by CEO Derek Delaney, to continue to grow and complement Waystone’s existing service offering while supporting further geographic and product expansion through targeted acquisitions.

“Hg will join Montagu and the management team as key shareholders. This will support our growth as an institutional, global service provider, paving the way for further expansion in 2022,” said Derek Delaney, Global CEO at Waystone.

“As a long-established investor in the space, we recognise the growth opportunity for fund services, and specifically a third-party management company with Waystone’s global reach and competitive strength. We look forward to working with Waystone’s strong management team to meet the future needs of its clients,said Tobias Weltin, Director at Montagu.

“We’re impressed with what Derek and his team have achieved over the last decade. Hg knows the sector well, having invested around $4.5 billion into legal & compliance and the capital markets segments to date. This experience means that we know quality when we see it, and Waystone stands out as a leading platform for consolidation in this sector,” said Thorsten Toepfer, Partner at Hg.

“We recognise Waystone as a leading platform in fund governance, with a differentiated profile and potential to scale further. We look forward to what we can achieve together with Montagu, Derek and the team,” said Justin Von Simson, Managing Partner at Hg.

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