HgCapital Trust (HGT) Q2 2025 earnings summary

Executive summary

• Focused on investing in profitable, growing B2B software and services companies with resilient, recurring revenue models and low customer churn.

• 30+ year track record as a leading private equity tech investor, with $100bn+ AUM and £2.5bn net assets, managing 57 investments in mission-critical B2B software and tech-enabled services.

• Portfolio delivered robust trading with 19% LTM sales growth and 18% EBITDA growth, outperforming quoted peers despite macroeconomic volatility.

• Portfolio diversified across sectors like Tax & Accounting, ERP & Payroll, Legal & Compliance, Insurance, Fintech, and Healthcare IT.

• £306m invested and £165m realised in H1 2025, maintaining strong liquidity and ongoing deal activity.

Financial highlights

• 10-year share price CAGR of 19.2% and 10-year outperformance vs. public markets of 12.4% p.a. on a total return basis.

• NAV per share at 539.5p (down 0.4% vs H1 2024) and share price at 515.0p (down 3.8%) as of June 2025.

• Portfolio delivered 19% LTM sales growth, 18% LTM EBITDA growth, and 33% EBITDA margin.

• Realisations YTD 2025 totaled £165m, with an average uplift of 22% over carrying value.

• Interim dividend maintained at 2.0p per share; ongoing charges annualised at 1.5% of NAV.

Outlook and guidance

• Resilient trading expected to continue, underpinned by mission-critical products and services.

• Expectation of continued double-digit earnings growth in the software sector, with M&A as a key driver.

• Selective investment in defensive business models to build future value.

• Trading momentum anticipated to improve into 2026 as market stabilises.

• Challenging exit market, but focus remains on returning cash to clients and leveraging long-term automation trends.