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(Alliance News) - HgCapital Trust PLC on Friday said it will invest GBP7.4 million in German software firm Auvesy after the manager of the fund, Hg, agreed to buy a stake in the company.
London-based private equity firm Hg on Friday announced the investment in Auvesy, which provides internet-of-things software for industrial settings. Hg did not disclose a price or the size of the stake, but said former majority owner Brockhaus Private Equity has fully exited its position and that the Auvesy management will maintain a significant investment in the company.
It means HgCapital Trust, the FTSE 250-listed investment fund manged by Hg, also will invest in Auvesy.
Following the transaction, HgCapital Trust will have GBP129 million available for future deployment, about 10% of its net asset value of GBP1.3 billion as of February 28.
Shares in HgCapital Trust were down 0.1% to 336.70 pence in London.
"We see significant growth potential in this sector, both across new industry verticals and expansion into additional use cases. Auvesy is incredibly well positioned to benefit from this potential," Hg Director Benedikt Joeris said.
Tim Weckerle, Auvesy chief executive, said: "We are delighted to be partnering with a software expert in Hg. We see their operational experience and expertise in areas such as international sales, marketing and M&A being hugely beneficial to the future growth of the firm."
By Ivan Edwards; ivanedwards@alliancenews.com
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