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HgCapital invest in Pirum Systems

HgCapital Trust’s (HGT’s) manager Hg has made an investment in Pirum Systems, which HGT describes as “a leading provider of post-trade automation and collateral management technology for the global securities finance industry”. Although the terms of the transaction are not disclosed, HGT is investing approximately £9.4m in Pirum Systems, alongside other institutional clients of Hg through the Hg Mercury 3 Fund. Following the transaction, which is subject to regulatory approval, HGT’s liquid resources available for future deployment (including all announced transactions, and equity raised via tap issuance) are estimated to be £311 million (17% of the pro-forma 30 September 2021 NAV of £1.9 billion). The investment will reduce HGT’s outstanding commitments to invest in Hg transactions to approximately £418 million (22% of the pro-forma 30 September 2021 NAV). Hg will share joint control with Pirum’s current backers Bowmark Capital, the technology and services investor, which invested in the company in 2019. The Pirum management team will also retain a significant stake in the business.

About Pirum Systems

Pirum was founded in 2000 “to provide advanced, centralised and secure reconciliation services for financial market participants”. HGT says that the company’s software provides a secure processing hub which seamlessly links industry participants, allowing them to process and verify key transaction details electronically. It says that this delivers significant trade and collateral efficiency, lowers costs and enhances regulatory compliance for its network of clients. Pirum’s products are said to assist 90 of the most prestigious global financial institutions to process over $3 trillion of transactions daily.

Comments from Philip Morgan, Chief Executive Officer at Pirum

“This is a significant milestone in our journey, and is welcome news for everyone at Pirum. Together with Bowmark, Hg will actively support Pirum’s global expansion and investment in additional innovations, helping us to deliver further efficiency and productivity gains for our customers and the broader industry eco-system.”

Comments from Sebastien Briens, Partner at Hg

“Hg invests in businesses that are champions in their field, with compelling long-term growth prospects underpinned by strong technological foundations and talented leadership teams. Pirum has all of these qualities and is a business we have tracked for many years through our capital markets technology focus. We look forward to backing Phil and his team, and to partnering with Bowmark to further scale what is already a great platform, driving continued automation of post-trade workflows.”

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