Hg Capital looking to raise £80m – HgCapital Trust intends to raise up to approximately GBP80 million by way of a placing of new ordinary shares in order to maximise the opportunities to access the manager’s pipeline of deals.
The board has been informed by Hg that it expects that its partners and staff will invest at least GBP10 million either in the placing or, if the placing is fully subscribed, by buying shares in the open market. This is in addition to the more than GBP100m investment made by Hg partners and staff directly into the current Hg Mercury, Genesis and Saturn funds.
The board believes it would be advantageous to shareholders were the company to be able to continue to make commitments to future Hg fund vintages in the range of 10% to 15% of the total Hg fund size, as they have been able to do historically. Given the cycle of Hg’s fundraising, the board believes that they may be required to make commitment decisions to Hg’s next vintage of funds within the next 6 to 12 months.
The board would also like to continue to have the ability to take part in co-investments offered to them by Hg (currently 15% of NAV). These co-investments incur no management fees or carried interest at the co-investment level, and no carried interest and no additional management fees at the company level.
The company has GBP97 million (12% of the NAV as at 31 May 2019) available to invest. This is below the long-run average that would typically be invested within a 12-month period.
Details of the Placing
The issue is only available to Qualified Investors (a legal term defining professional investors) and members of the public are not eligible to take part. [we appreciate that many Hg Capital investors will find this extremely frustrating]
New ordinary shares will be issued at 217.1 pence each. The total number of shares available is 37,324,698 (about 10 per cent. of the current issued share capital.
HGT : Hg Capital looking to raise £80m