HgCapital Trust plc (HGT), the London Stock Exchange-listed investment trust providing exposure to a portfolio of unquoted European technology companies managed by Hg, has reported its results for the three months ended 30 September 2026. Net Asset Value per share rose to 539.1 pence, delivering a NAV total return of 2.0% for the quarter, the second consecutive quarter of NAV growth. Strong underlying portfolio trading, including last-twelve-month EBITDA growth of 19%, more than offset further contraction in valuation multiples, a dynamic that investors in private equity-backed technology vehicles will be watching closely.

Key Points

  • HgCapital Trust plc (HGT) — listed investment trust on the London Stock Exchange
  • NAV per share reached 539.1 pence at 30 September 2026, with net assets of £2.4 billion and a NAV total return of 2.0% for Q3 2026
  • Portfolio trading added 5% to portfolio value in the quarter; weighted average EV/EBITDA multiple reduced to 22.6x from 25.2x at 31 December 2025; discount to NAV stood at approximately 28%
  • Investors may be watching Hg's stated intention to increase its ownership of HgT from approximately 6% to more than 15% over the medium term, alongside post-period investments and realisations

HgT NAV Returns to Growth for Second Consecutive Quarter Despite Declining Valuation Multiples

HgCapital Trust's NAV total return of 2.0% in Q3 2026 follows a recovery of 0.5% in Q2 and a sharp decline of 5.4% in Q1 during what the announcement describes as the peak of the sell-off in public software. Year-to-date NAV total return stands at -3.1%. Portfolio trading contributed positively, adding 5% to portfolio value in the quarter and 15% year to date, while movements in comparable company multiples reduced portfolio value by 2% in the quarter and 13% year to date. Increased net debt and foreign exchange movements provided a marginal further drag in Q3, the announcement states.

Portfolio EBITDA Grows 19% LTM as HgT Invests £28 Million in Street, Nourish and Teamworks

Last-twelve-month organic sales and EBITDA growth reached 11% and 17% respectively, with reported figures of 15% and 19%, and EBITDA margins of 35% across the portfolio. During Q3 2026, HgT deployed £28 million across new investments in Street and Nourish, and a further investment in Teamworks. Post-period, the trust has committed approximately £33 million to ES1, a Greek ERP and business software provider, and approximately £6 million to 3E, a renewable energy asset performance management software business, both subject to completion. The net debt to EBITDA ratio for the portfolio reduced to 6.7x from 7.4x at 31 December 2025.

Quantios Exit Signed at 31% Uplift and Gen II Sale Agreed at 34% Above Carrying Value

Realisations during the period totalled £13 million, largely from the full exit of Quantios, signed at a 31% uplift to carrying value. Post-period, Hg agreed the sale of Gen II at a 34% uplift, generating approximately £71 million for HgT and expected to complete in 2027. The announcement states that including Gen II, Hg has agreed or completed four full exits in 2026 at an average uplift of 32% to carrying value, above the stated ten-year average uplift of 30%.

Revolving Credit Facility Upsized to £450 Million and Hg Targets 15% Strategic Stake in HgT

HgCapital Trust agreed during the period to extend and upsize its revolving credit facility to £450 million from £375 million, with the expiry date extended to September 2029 from March 2027. The margin was reduced to 3.00% over SONIA with a commitment fee of 1.15%, both more favourable than previous terms. Available liquid resources stood at £286 million as at 30 September 2026, with £168 million of the facility drawn. Separately, Hg announced its intention to increase its aggregate strategic ownership of HgT to more than 15% over the medium term, with on-market purchases described as ongoing.