HgCapital Trust to book £18m uplift from Gen II exit
HGCapital Trust
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11:32 06/10/26
HgCapital Trust said on Tuesday that the sale of fund administrator Gen II to KKR would value its investment at around £71m, representing a £18m uplift to its previous carrying value.
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The London-listed investment trust said the valuation was 34% above the £53m carrying value of its Gen II stake in its pro-forma net asset value at 31 August, equivalent to an uplift of 4.0p per share.
Following the transaction, HgCapital Trust’s pro-forma NAV is expected to stand at £2.4bn, or 529.5p per share.
The trust said its liquid resources available for future deployment would be around £347m, equivalent to 14% of its 31 August pro-forma NAV, taking into account announced transactions, its October interim dividend and available bank facilities. Outstanding commitments to invest in Hg transactions stood at roughly £2bn.
KKR is buying Gen II from Hg, General Atlantic and other minority investors for a total enterprise value of $5.1bn.
Hg and General Atlantic first invested in Gen II in 2020. Since then, the private capital fund administrator has expanded in the US and Europe, completed four acquisitions and quadrupled revenue and EBITDA, Hg said. Gen II now provides services to more than 275 investment managers representing over $2trn of assets.
The transaction remains subject to regulatory approvals and other customary closing conditions and is expected to complete in 2027.
HGT shares were up 3.8% at 387.26p by 0901 BST.