HgCapital Trust

Investment in HgCapital Trust plc offers investors a liquid investment vehicle through which they can obtain an exposure to HgCapital’s diversified portfolio of private equity investments with minimal administrative burdens, no long-term lock-up or minimum size of investment.

Appointed Manager of the Trust in 1994, HgCapital is a private equity investor focused on the European mid-market. Its business model combines sector-specific thematic investing with dedicated portfolio management support. HgCapital invests in growth companies in expanding sectors via leveraged buyouts and in renewable energy generating projects across Western Europe, consistent with this strategy historical value creation has been driven by growth and operational improvement.

Over the last decade HgCapital has progressively invested in the partnership to establish a robust and properly aligned private equity investment platform. With over 90 employees in two investment offices in the UK and Germany, HgCapital has assets under management of over £3.6 billion, serving over 100 highly regarded institutional investors, including private and public pension funds, endowments, insurance companies and fund of funds. HgCapital’s largest client is HgCapital Trust plc.

HgCapital’s five sector teams combine the domain knowledge and expertise of a trade buyer – giving them superior credibility and the ability to make quick decisions – with the flexibility of a financial investor – leading to high conversion rates on deals.

This deep sector focus is channelled through a rigorous research-based approach and disciplined thematic investment processes, whereby the most attractive segments of the European mid-market can be systematically identified and then repeatedly invested in, optimising deal flow and improving returns.

The Trust has seen sustained long term capital appreciation with a compound annual growth rate of 16.5% over the last 10 years (to 30 November 2011) and has outperformed the FTSE All-Share by 11.8%. This means that £1,000 invested in HgCapital Trust plc ten years ago would now be worth £4,610, an equivalent investment in the FTSE All-Share Index would be worth £1,589.

With substantial resources and a structure that focuses on delivering value, HgCapital has the tools and ability to succeed consistently.

Click here to see HgCapital CEO, Nic Humphries, discuss the firm's thematic investment strategy and click here for the associated presentation.

Please note: Total return assumes the reinvestment of all dividends.

The LPX Europe Index represents the most actively traded listed private equity companies covered by LPX that are listed on a European exchange. For more information visit www.lpx-group.com