HgT reported a modest rise in its net asset value (NAV) per share over the third quarter, underscoring the resilience of its software-focused investment portfolio even as its share price eased.
The private equity trust’s NAV per share increased by 2.4% during the period, bringing it to £5.50 at quarter-end, with net assets of £2.5bn. In contrast, the share price slipped 2.7% to £4.99, valuing the company at around £2.3bn.
HgT said trading across its portfolio companies remained robust, in line with recent quarters, adding 4% to portfolio growth during the period. However, this was partly offset by lower valuation multiples and a modest rise in net debt. Over the past twelve months, the portfolio delivered sales growth of 18% and EBITDA growth of 19%, maintaining a 33% EBITDA margin, evidence of continued strong operational performance.
The trust’s balance sheet remains solid, with £379mn in available liquid resources (equivalent to 15% of NAV). This includes a £375mn bank facility, £46mn of which is currently drawn, alongside £1.7bn in commitments to Hg funds to be deployed over the next four to five years.
Realisation activity was limited during the quarter, totalling £7mn, mainly from the partial sale of equipment management platform Trackunit. A further exit completed after the period, namely the sale of GTreasury , is expected to generate £30mn for HgT at a 97% uplift to carrying value, underscoring the continued appeal of the portfolio’s assets.
New investments during the quarter amounted to £49.7mn, principally into A-LIGN, a leading provider of cyber compliance services. This was offset by £19.7mn in equalisation adjustments following the latest closing of the Hg Saturn 4 fund. A post-period investment of £17mn in Payworks is also anticipated. Co-investments now account for 10% of NAV, up from 9% at the start of 2025.
Hg said it continues to evaluate an active pipeline of investment opportunities, with further liquidity events expected over the next six to twelve months.
Based on HgT’s share price at 30 September 2025, and assuming dividends were reinvested, a £1,000 investment twenty years ago would now be worth £13,364, representing a total return of 1,236%. The equivalent investment in the FTSE All-Share Index would be worth £3,762.