HgCapital Trust plc Regulatory News (HGT)

Hg, the Manager of HgCapital Trust plc ("the Company"), today announces the sale of Intelliflo, a leading Software as a Service ('SaaS') business for UK financial advisors, to Invesco, the Atlanta-based global investment management company. The terms of the transaction were not disclosed.

The Company, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.

This transaction values the Company's investment in Intelliflo at approximately £16.8 million. This would represent an uplift of £6.7 million (66%) or 18 pence per share over the carrying value of £10.1 million in the Net Asset Value ("NAV") of the Company at 30 April 2018.

Note that these figures only relate to HgCapital Trust's share of Hg's overall investment in Intelliflo.

Based on the 30 April 2018 reported NAV (including all transactions announced to date and the resulting revaluation of the carried interest provision), the pro-forma NAV of the Trust is expected to be £742.6 million (or 1,989.6 pence per share). The Company will realise estimated cash proceeds of approximately £13.1 million on completion of this transaction, after allowance for a payment of carried interest to the Manager. The Company's liquid resources available for future deployment (including all announced transactions) are estimated to be £200 million (27% of the pro-forma 30 April 2018 NAV). In addition, the Company has access to a £80 million standby facility, which is currently undrawn.

Hg agrees sale of Intelliflo to Invesco

- Transaction is the sixth realisation achieved by the Hg Mercury 1 fund.

- Mercury 1 fund now has a gross realised fund multiple of 3.4x original cost and 44% gross IRR.

- Represents the 16th realisation across all Hg funds in the last 18 months - returning over £3 billion in aggregate.

6 June 2018 - Hg today announces the sale of Intelliflo, a leading Software as a Service ('SaaS') business for UK financial advisors, to Invesco, the Atlanta-based global investment management company.

The terms of the transaction are not disclosed.

Intelliflo is a UK provider of front and back‑office software solutions to financial intermediaries, including IFAs, wealth managers, adviser networks, insurance/life companies and brokers. Intelliflo's Intelligent Office ("iO") software platform is the backbone of the UK wealth sector, assisting financial advisors across the full advice journey - including client relationship management, financial planning, client reporting, portfolio valuation and provision of advisor-led automated advice. 

Hg partnered with Intelliflo in 2013, in line with its strategy to invest in leading recurring revenue vendors in the financial services software sector. Over the past five years, Hg has supported the company to implement best in class SaaS practices in development, operations, sales and marketing - under the leadership of Nick Eatock, founder, and Hamish Purdey, CEO. The company has experienced a material acceleration of revenue growth in this period and has become the leading technology platform for financial advisors in the UK, successfully supporting the business of around 30% of UK financial advisors.

This is the sixth realisation achieved by the Hg Mercury 1 fund, which has now a gross realised fund multiple of 3.4x original cost and 44% gross IRR. The sale also represents the 16th realisation across all Hg funds in the last 18 months, which have in aggregate returned over £3 billion to clients.

Sebastien Briens, Partner at Hg, said: "During our partnership with Nick, Hamish and the team at Intelliflo we have supported the company to become one of the world's leading innovators of SaaS technology for the wealth and asset management industry. We are delighted to see them starting a new partnership with Invesco. We will continue our focus on the asset management and wealth sector, having already partnered with several exciting businesses serving this vertical."

Hamish Purdey, Chief Executive Officer at Intelliflo said: "We would like to thank Hg for all their support since 2013 in getting us to this stage in our development. In a comparatively short space of time, we have built one of the UK's largest pure-play software as a service businesses, and we now look forward to expanding our business, taking our leading technology into new markets across the globe. We will continue with our open architecture philosophy after the sale - it remains critically important to us that our financial adviser customers continue to be able to select from a wide range of product providers."

Intelliflo and Hg were advised on this transaction by Evercore, Linklaters and Deloitte. The management team were advised by Fieldfisher.

For further details:

Hg

Maitland

About HgCapital Trust plc

HgCapital Trust plc, whose shares are listed on the London Stock Exchange (ticker: HGT.L) gives investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. New investments and existing portfolio companies are managed by Hg, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors. For further details, please see www.hgcapitaltrust.com .

The contents of the Hg, HgCapital Trust, Intelliflo and Invesco websites and any website accessible from hyperlinks on such websites (or any other website) are not incorporated into, and do not form part of, this announcement.