HgCapital Trust (HGT) has bagged an £18m gain on the £71m sale of its stake in Gen II Fund Services. The New York-based global fund administration company has been bought for $5.1bn by private equity giant KKR from Hg, manager of HGT, General Atlantic and other minority investors. The uplift for HGT represents an increase of 34%, or 4p of net asset value (NAV) per share, over the £53m valuation at 31 August. It lifts the £2.4bn software-dominated private equity portfolio to a pro forma NAV per share of 529.5p to which its shares, at last night’s close of 373p, stand at a 29.4% discount. The shares de-rated in February over fears that many of its portfolio companies would be disrupted by artificial intelligence, a view it sought to challenge with second quarter results showing a 0.5% return.
Richard Williams, senior analyst at QuotedData, said: “This is an excellent exit for HGT, capping a successful six-year investment during which Gen II has quadrupled both revenue and EBITDA through a combination of organic growth and acquisitions. The proceeds add to HgT’s liquidity at a useful time given its sizeable investment pipeline, although its £2bn of outstanding commitments remain substantial relative to the £347m of liquid resources currently available.”
Saba Capital has sold its 5% position in Baillie Gifford UK Growth (BGUK). The activist US hedge fund notified the market yesterday that it had disposed of its holding in shares and swap derivatives on 30 September. The New York firm first disclosed the stake in January, since when BGUK share price has risen around 6% with the stock on a 9% discount to net asset value. Over six months, however, the shares have rallied 17%, ahead of the 4% gain in the FTSE All-Share. Longer-term performance under Baillie Gifford fund managers Iain McCombie, Milena Mileva and James Smith remains under pressure with a total investment return of 45% over three years compared to the All-Share’s 56%. The exit comes as Saba pushes for control of Baillie Gifford US Growth (USA), where it has lifted its holding to a maximum 29.9% ahead of a 23 October to elect its three nominees to the board. The USA board is urging independent shareholders to vote against the Saba nominees.
Taylor Maritime (TMI), the winding-down shipping operator, has announced a fourth return of capital, saying it will distribute $45m to shareholders through a compulsory purchase of shares in November. This will deliver most of the $48.6m raised from the sale of three handysize vessels, which has just completed. The company, which returned $45m to shareholders in July, is in the process of selling its last ship.
BP Marsh & Partners (BPM), the £233m AIM-listed backer of early-stage financial services businesses, has made an investment in Dauntless U/W Limited, a newly formed London Market underwriting agency specialising in marine hull insurance. It has bought a 30% equity interest for a nominal sum and is providing a £2m loan facility. Dauntless has been co-founded by Des Keane and Charles Scott-Hopkins, who have held senior underwriting positions at Lloyd’s syndicates including Tokio Marine Kiln, CNA Hardy and Ascot.
You’ve read the news. Now have your say. Which investment trusts, fund managers and ETFs deserve to win? You decide in the Investors’ Choice Awards 2026. Vote now.
