Monday 10 June 2019 1:37 pm

HG Capital targets £80m fundraise


Jess Clark is a City A.M. news reporter covering private equity and investment.

Jess Clark is a City A.M. news reporter covering private equity and investment.

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HG Capital Trust plans to raise £80m through a share placing to fund opportunities in an “attractive proprietary pipeline”.

The FTSE 250 investment trust will issue 37m new ordinary shares at 217.1p each, representing around 10 per cent of its current issued share capital.

The trust said its partners and staff are expected to invest at least £10m either in the placing or through purchases of ordinary shares in the open market.

Read more: Tinkoff owner TCS looks to £300m London fundraise

In a statement today HG said: “The board believes that it is in shareholders’ interests to raise further equity in order to maximize the company’s opportunities to access HG’s attractive proprietary pipeline and thereby to enable the company to continue its long-term performance record.”

The current funding available to HG to invest is £97m, which is below the amount that would be invested over 12 months.

HG focuses on investments in unquoted European software and services business.

In its results for the year to December 2018, the company said its top 20 investments saw revenue growth of 25 per cent.

Numis Securities is acting as corporate broker for the placing, which will close at 1pm on Wednesday at the latest.

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