(Alliance News) - HgCapital Trust PLC announced on Friday it has invested in Fonds Finanz, a financial intermediary pool in the German insurance sector.
The Munich-based private equity firm said it is investing GBP8.0 million into Fonds Finanz, with other unnamed institutional clients investing alongside, through the Hg Mercury 3 Fund.
The full terms of the deal were not disclosed.
HgCapital said that the partnership will enable Fonds Finanz to further optimise its business, give it an opportunity to enter several additional customer segments, and allow it to acquire attractive businesses to further broaden the Fonds Finanz service offering and to drive innovation by acquiring complementary technology.
The investment will reduce HgCapital's outstanding commitments to invest in Hg transactions to around GBP410 million. HgCapital's liquid resources available for future deployment are estimated to be GBP303 million.
Director Benedikt Joeris said: "Fonds Finanz occupies a central position in the insurance eco-system across Germany. Over the last decade we've got to really know this sector and we instantly recognised Fonds Finanz as a high value-add channel for insurance companies. We're really excited to support Fonds Finanz on its journey, not least because we think technology will play an ever increasing role for the business going forward."
Shares in HgCapital were down 0.1% at 420.50 pence on Friday in London.
By Heather Rydings; heatherrydings@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
HgCapital Trust plc (HGT)