c£10bn funds under management

Hg is committed to building businesses that change the way we all do business, through deep sector specialisation and dedicated operational support.

Hg’s vision is to be the most sought after private equity investor within our sector focus, being a partner of choice for management teams and providing a rewarding environment for Hg colleagues.

Hg has a clear investment approach, targeting Software and Services companies operating in “Hg clusters” growing faster than the broader economy. We primarily seek controlling equity buyout investments in predominately Northern European headquartered businesses, though such companies will often have a global footprint and customer base.

Hg’s objective is to pursue investment theses supporting long-term growth, leveraging its expertise working with Software and Services companies to implement initiatives designed to maximise organic expansion, as well as through rolling up fragmented sectors, over typical hold periods of approximately five years.

Hg has led over 100 investments in the software and services sector during the last 25 years. This focus means we have developed an institutional expertise and a deep understanding of the markets and businesses in which we invest.

For further detail, a PDF factsheet can be downloaded here.

On an aggregated basis, the Hg portfolio would represent the third largest, and fastest growing, software business in Europe.

The Power of the Portfolio

Hg has a unique approach and strategy, with a focus on achieving  scale in tightly defined clusters of expertise.

As a result we have assembled a large portfolio of companies and business models that share similar characteristics, but differ in size and maturity.

This creates a natural environment for knowledge sharing, creating a network effect to drive best practices and value creation initiatives.

This is why we believe in collaboration and the ‘power of the portfolio’.

This scale and focus enables our businesses to benefit from being part of one larger organisation, whilst retaining their own identity.

>100 highly regarded institutional investors

Hg’s investment teams have a flexible approach in terms of both size and horizon.

This means that at any given time, the Hg portfolio will comprise more than thirty software and services businesses with similar characteristics, but of different sizes, end market focus, and maturity profiles. These characteristics comprises businesses models that have a:

  • Business critical need delivered as software or service
  • Subscription or repeat revenue model
  • Utilising years of accumulated IP > high margin
  • Fragmented customer base

This flexible investment approach is made possible by three buyout funds, with deal sizes ranging from £50 million to over £5 billion:


Hg Saturn Logo
Hg Genesis Logo
Hg Mercury Logo

The Saturn fund focuses on larger-cap companies with enterprise values above £1 billion. Hg’s typical hold will be between £400 million and £500 million and we aim to make around four investments.

The Genesis funds focus on mid-market companies with enterprise values between £250 million and £1 billion. Hg’s typical hold will be between £100 million and £250 million and we aim to make around twelve investments.

The Mercury funds focus on smaller-cap companies with enterprise values between £50 million and £250 million. Hg’s typical hold will be between £30 million and £60 million and we aim to make around twelve investments.

Hg Saturn Logo
The Saturn fund focuses on larger-cap companies with enterprise values above £1 billion. Hg’s typical hold will be between £400 million and £500 million and we aim to make around four investments.

Hg Genesis Logo
The Genesis funds focus on mid-market companies with enterprise values between £250 million and £1 billion. Hg’s typical hold will be between £100 million and £250 million and we aim to make around twelve investments.

Hg Mercury Logo
The Mercury funds focus on smaller-cap companies with enterprise values between £50 million and £250 million. Hg’s typical hold will be between £30 million and £60 million and we aim to make around twelve investments.

c170 employees in three investment offices

Today Hg has c.180 employees representing the largest technology investment team in Europe.

We have three investment offices based in London, Munich and New York, managing funds under management of around £10 billion and serving more than 100 highly regarded institutional investors, including private and public pension funds, insurance companies, endowments and foundations.

Hg is itself an entrepreneurially-led fast growing business 100% owned and managed by its Partners.

The company is committed to being a responsible investor and, as such, is a signatory of the UN Principles for Responsible Investment.

A little bird told me...

@HgCapital

@KaarlyBoo @ejwallace1 They are indeed!

14 November
@HgCapital

An inspiring Annual Client Meeting! We reflect on the ways our network of companies is reinforced by Hg and the skills & experience they themselves share. Discussions on @aplaninsurance @evaluatepharma @FEfundinfo @LiteraMicro @rhapsodyhealth @CorepointHealth @teamdotblue @visma https://t.co/D4nntY8AkN

14 November
@HgCapital

Hg's Director of Research, David Toms, makes us aware of the elephant in the room at our Annual Client Meeting. Today tells the story of how our insight & our interconnected group of #software & #services companies, helps us build businesses that change how we all do business. https://t.co/LkNtBPRbnE

14 November