HgCapital Trust plc Regulatory News (HGT)

Set out below is the text of a press release issued today by HgCapital, which manages the investment portfolio of HgCapital Trust plc alongside those of other institutional clients. The Trust, which is a listed investment trust giving private and institutional investors the opportunity to participate in all HgCapital's investments, will invest approximately £12.0 million in Frösunda.

HgCapital acquires Frösunda from Polaris

London, 4 May 2010: HgCapital, the European sector focused private equity investor, is pleased to announce that it has agreed the acquisition of Frösunda LSS AB, the leading Swedish provider of specialist disability care. The transaction is subject to regulatory approval. The company has been acquired from Polaris, the Danish private equity firm. The value of the transaction was undisclosed.

Frösunda, headquartered in Solna, Sweden, was originally a subsidiary of the health care services co-operative, Praktikertjänst. It became an independent business, backed by Polaris, in 2007. Frösunda provides personal assistance (care delivered to the home) and housing (group assisted accommodation) services for adults and children with physical or mental disabilities. It also has an emerging coaching and schools business. Frösunda cares for 1,600 users and operates 41 offices across Sweden.

HgCapital will be working with the existing management team to continue to develop Frösunda as an independent business and the leading provider of specialist care in Sweden. HgCapital fully supports management's strategic objectives of maintaining organic growth, continuing to grow by acquisition and further investment to diversify the company's care offering.

This transaction is the second investment made by HgCapital's specialist healthcare sector team in the last six months. Carl Harring executed the transaction for HgCapital as part of an exclusive bid process.

Commenting on the acquisition, Lindsay Dibden, Partner of HgCapital and Head of the Healthcare team stated: "The HgCapital healthcare team has followed the Scandinavian market for several years based on the favourable macro demographics, high quality companies, and the strong trend towards outsourcing. Our sector experience and knowledge of Nordic investing meant we were able to proactively identify the key sub sectors we wish to deploy capital in, namely specialist care.

Carl Harring, who led the transaction for HgCapital added,"Frösunda provides the broadest care offering in the Swedish specialist care market and has an excellent management team. This investment represents an attractive opportunity to build on the company's impressive track record in its current markets and to enable it to expand its care offering into adjacent segments."

Göran Fredriksson, CEO of Frösunda added:"Over recent years Frösunda has undergone extensive re-organisation and established an excellent reputation in delivering the highest quality of care in Sweden. We are pleased to be able to draw on HgCapital's sector expertise and financial backing in working towards the next stage in the company's evolution."

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For further details:

About HgCapital

HgCapital is a sector focused private equity investor in the European mid-market. We focus on investments with an enterprise value in the range of £50-£500 million. Our business model combines sector specialisation with dedicated, pro-active support to our portfolio companies as well as the corresponding management expertise across all phases of the investment process.

HgCapital manages £3 billion for some of the world's leading institutional and private investors.

For further details, see www.hgcapital.com 

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange. The trust gives investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. This portfolio is managed by HgCapital, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors. The Trust has won the Investment Week Private Equity Investment Trust of the Year every year since 2005.

For further details, see www.hgcapitaltrust.com