Hg launches Catalyst: a new AI incubator accelerating product innovation across the software economy
• 2 minute read
London and New York, 17 November: Hg, the leading investor in European and transatlantic software, services and data businesses, today announces the official launch of Hg Catalyst, a dedicated AI incubator designed to accelerate AI product innovation across Hg’s portfolio.
Operating from newly created European and North American hubs in London and New York, Catalyst will bring a scaled capacity of over 80 elite AI engineers, product managers, and designers who work directly within portfolio companies to build production-grade AI products that generate real customer value.
Building the product innovation engine
Catalyst represents an evolution in Hg’s commitment to help software companies to scale faster through technology. Acting as an in-house AI product incubator, Catalyst embeds small, high-performance AI teams inside portfolio businesses to conceive, build, and ship new Agentic AI products. Rather than building prototypes or pilots, Hg Catalyst helps to build ‘real world’ products that drive revenue growth and enhance customer experience.
Lloyd Hilton, Head of Hg Catalyst, said: “There’s a huge difference between AI that demos well and AI products that deliver deep customer value. Catalyst closes that gap, embedding our world-class engineers, product managers, and designers into portfolio teams to dramatically accelerate AI and agentic product development. What we’re learning then compounds across the portfolio: one company’s breakthrough becomes a pattern we can apply everywhere.”
AI-led transformation is now driving tangible value across Hg’s companies:
Hg Catalyst has already helped launch over 15 AI-powered products across the Hg portfolio. This is generating meaningful ARR and, in some cases, boosting new customer bookings by more than 40% in their first year.
More than 10 businesses are deriving more than 10% percent of bookings from AI-enabled products and AI initiatives across the Hg portfolio delivering more than $130 million in EBITDA value-based uplift through automation, innovation, and efficiency gains.
Impact in engineering productivity show teams achieving nearly 2x development velocity through agentic tools.
Hg Catalyst has supported the launch of next-generation AI products such as Cephai+ at CINC Systems, Nexus AI at FE fundinfo, Ntelligence Solutions at Ncontracts and Prophix One Intelligence at Prophix.
GSmart AI, launched by GTreasury, led to Hg’s first AI-driven exit, where this 'real' AI product, developed and commercialised by Hg Catalyst, accelerated GTreasury’s growth and attracted a strategic investor.
“Each of these products exemplifies Catalyst’s mission to capitalise on GenAI and the new levels of value we can help our portfolio bring to customers, unlocking new and very material revenue streams” said Chris Kindt, Head of Value Creation at Hg. “AI isn’t just another wave of technology, it’s redefining how software is built, sold, and experienced. For our companies, it means faster product innovation, richer customer value, and entirely new categories of opportunity. Catalyst is how we operationalise that strategic advantage systematically across the Hg portfolio.”
Hiring the next generation of AI builders
Catalyst is actively hiring across London and New York for AI Engineers, Software Engineers, and Technical Product Managers. These roles offer the speed of a startup with the scale of enterprise software, with the opportunity to work across Hg’s 55+ portfolio companies and help shape the future of AI in real-world industries.
Hilton added: “Catalyst is for people who want to build the future of enterprise AI and deliver exceptional product experiences to solve real-world problems. We’re looking for exceptional talent who can bridge technical innovation and commercial impact.”
Get in touch at hgcatalyst.com or contact joincatalyst@hgcapital.com
For further information, please contact:
Tom Eckersley, tom.eckersley@hgcapital.com
Sam Ferris, sam.ferris@hgcapital.com
Brunswick, Hg@brunswickgroup.com
About Hg
Hg is the leading investor in transatlantic software and services businesses. We help to build sector-leading enterprises that supply critical software applications or workflow services to deliver intelligent automation for their customers.
We take an active approach to value creation, combining deep end-market knowledge with world class operational resources to provide compelling support to entrepreneurial leaders looking to scale enduring businesses.
Headquartered in the UK, with a vast European network and strong presence across North America, Hg has more than $100 billion in assets under management and more than 400 employees. Our portfolio spans more than 50 companies worth over $180 billion in aggregate enterprise value, employing more than 125,000 people and consistently growing revenues at more than 20% annually.
Disclaimer
This video reflects Hg’s current views and opinions regarding broader market trends, based on information available as of the date of publication. It is provided for general informational and discussion purposes only and should not be construed as investment, legal, accounting, or other professional advice. Any forward-looking statements, projections, or estimates are based on assumptions that may change without notice and are not guarantees of future events or performance. Past performance is not indicative of future results. There is no guarantee or assurance that the trends described or depicted in this video will continue and actual results may differ materially.