SaaS is not dead

HgT reported its full-year trading update, posting a 4.0% NAV total return (TR) in FY25, bringing its five- and 10-year NAV TR to 14.1% and 17.0% per year, respectively. The FY25 return was driven by continued strong growth in revenue and EBITDA across HgT’s portfolio of 17% and 20% in 2025, respectively, at a healthy average EBITDA margin of 34%. This contributed 17pp to its portfolio performance, partly offset by the negative 7pp effect of lower public multiples and the 6pp impact of an increase in portfolio company debt, used to finance bolt-on M&A. Valuations of listed software companies remained volatile into January and early February 2026, sparked by intensifying fears over AI disruption coupled with a rotation from software into...