HgCapital announces majority investment in Raet

HgCapital, the manager of HgCapital Trust has announced that it has made a majority investment in Raet, a HR solutions provider that specilises in HR cloud software and services. The terms of this transaction have not been disclosed. HgCapital Trust will invest in Raet alongside other institutional clients of HgCapital, who will participate through the HgCapital 7 Fund. HgCapital Trust will contribute a total of approximately £16.2m. HgCapital say that the acquisition of Raet represents the tenth investment by the HgCapital 7 Fund, and following completion, the fund will be approximately 68% invested.

The managers say that, based on HgCapital Trust’s 29 February 2016 reported NAV, its liquid resources available for future deployment, including all announced transactions and the proposed dividend payable in May 2016, are estimated to be £21.3m (or 4% of the 29 February 2016 NAV). In addition, the HgCapital Trust has access to a £40m standby facility, which they say is currently undrawn. The transaction will reduce HgCapital Trust’s outstanding commitments to invest in HgCapital deals to approximately £102m (19% of the 29 February 2016 NAV).

HgCapital will be investing in Raet alongside its management team, who HgCapital Trust’s managers say will retain a significant minority stake in the Company. Raet is headquartered in Amersfoort in the Netherlands. It serves more than 10,000 customers internationally and is in the process of expanding its international footprint in both Europe and South America. It currently employs more than 1,000 staff and HgCapital say that they will be working with Raet to accelerate to accelerate its robust organic growth. The managers say that the investment represents a continuation of their theme of investing in leading payroll and HR-related businesses and follows prior investments in P&I, as well as Visma’s and IRIS’ payroll divisions.

HgCapital announces majority investment in Raet : HGT