HgCapital in joint investment into software firm IRIS – HgCapital Trust (HGT) has announced that it has made a joint investment into IRIS with Intermediate Capital Group. IRIS is a provider of business-critical software and services to the UK accountancy, education and business market.
Hg is a private equity investment group. It invests via a number of limited partnerships into unlisted companies. HgCapital Trust is listed on the London Stock Exchange and gives investors, who might not be able to invest in Hg’s limited partnerships, access to their activities.
One such “sub-fund” is is Hg6, which is winding up and returning cash to its investors. it has held 100% of IRIS and is selling half of its holding to another HG company Hg Saturn (also held by HgCapital Trust) and half to another party Intermediate Capital Group. The transaction is part of the wind up of Hg6 and allows its investors to receive realisation for the sale of IRIS. However, the transaction keeps IRIS within the business.
As part of this transaction, the company will realise its existing stake, along with other institutional investors who hold investments in IRIS via the Hg6 Fund. This transaction values the company’s investment in IRIS at approximately £93.2 million. This would represent an uplift of £16.7 million (22%) or 45p per share over the carrying value of £76.5 million in the NAV of the company at 30 April 2018. Hg’s part of the transaction is £37.5 million. Hg Saturn will be the owner of the holding of IRIS and will be paying more for IRIS than Hg6’s first investment.
HGT : HgCapital in joint investment into software firm IRIS