HgCapital Trust (HGT) investor relations material

Market environment and portfolio performance

• The past year has been highly volatile for technology and SaaS investments, with AI uncertainty impacting valuations and share prices.

• Despite recent share price weakness, long-term NAV and share price returns have been strong, with a 20-year annualized return of 14.1% to December 2025.

• Portfolio performance remains robust, with 16% LTM revenue growth, 19% LTM EBITDA growth, and a 34% EBITDA margin as of March 2026.

Strategic positioning and shareholder alignment

• The board believes the current share price undervalues the portfolio and is increasing alignment with shareholders through director stock purchases and £19m in buybacks YTD 2026.

• Hg has announced plans to increase its shareholding in the trust to over 15% in the medium term via on-market purchases.

Capital allocation and financial health

• Capital allocation focuses on long-term growth, with £1.6bn committed to 2025/2026 vintage funds and a modest dividend to maintain investment trust status.

• Buybacks are deployed tactically, and the trust maintains a strong co-investment track record with a 30% IRR and 3.0x MOIC.

• The portfolio is in robust financial health, with 75% of debt quantum hedged, most maturities extended to 2029+, no covenant breaches, and moderate leverage.