(Correcting that HgCapital Trust manager Hg also is London-based.)
(Alliance News) - HgCapital Trust PLC on Wednesday said manager Hg has agreed to a partial sale of Iris Software Group Ltd to Los Angeles-based private equity firm Leonard Green & Partners LP.
The London-based fund provides access to the private equity investments of London-based manager Hg. HGT said the terms of Hg's transaction Iris were not disclosed, but the deal valued its own investment in Iris at around GBP99.8 million.
Iris provides software and services in accountancy, payroll, human resources and education.
HGT will receive a net distribution of approximately GBP42.1 million from Iris, having re-invested a portion of its proceeds in the business alongside other institutional clients of Hg investing through Hg Saturn.
As part of the transaction, Hg's Saturn 1 fund will fully exit its remaining position in Iris. HGT's exposure to Iris will be GBP57.7 million at closing representing approximately 2.5% of net asset value, it said.
Senior partner at Hg Nic Humphries says: "Iris and Hg have a long history, evolving together over the past 20 years. We're delighted to now partner alongside LGP to accelerate Iris's US ambitions."
Shares in HgCapital Trust were up 2.3% at 437.00 pence each in London on Wednesday morning. It has a GBP2.00 billion market capitalisation.
By Sabrina Penty, Alliance News reporter
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HgCapital Trust plc (HGT)