HgCapital Trust plc Regulatory News (HGT)

Hg, the Manager of HgCapital Trust plc ("HGT"), today announces an investment in TrustQuay, a leading technology provider to the global trust, corporate and fund services industry.

The terms of the transaction are not disclosed.

HGT will invest approximately £9.1 million in TrustQuay, with other institutional clients of Hg investing alongside HGT through the Hg Mercury 3 Fund.

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

Note that these figures only relate to HGT's share of Hg's overall investment in TrustQuay.

HGT's liquid resources available for future deployment (including all announced transactions, the undrawn bank facility and the interim dividend payable in October) are estimated to be £357 million (17% of the pro-forma 31 August 2022 NAV of £2.0 billion).

The investment will reduce HGT's outstanding commitments to invest in Hg transactions to approximately £1.1 billion (54% of the pro-forma 31 August 2022 NAV).

TrustQuay secures Hg investment to further accelerate its vision to digitalise the Trust, Corporate and Fund Service sector

Fleet and London, United Kingdom. 4 October 2022. TrustQuay, a leading technology provider to the global trust, corporate and fund services industry, has today announced that Hg, a leading software and services investor, has become majority investor in the business.

TrustQuay provides entity management, client accounting, practice management, compliance and workflow software for trust, fund and corporate service providers around the world.

Over the next phase of growth, TrustQuay aims to scale further as a global leader by accelerating the digitalisation of this segment, including with the roll-out of TrustQuay Online, a brand new, sector-leading and feature-rich SaaS offering that will revolutionise how customers operate in this industry.

TrustQuay serves more than 360 customers and 26,000 users in over 30 jurisdictions, through eleven offices worldwide in key jurisdictions including Australia, Guernsey, Jersey, Luxembourg, Singapore, and the United Kingdom.

Keith Hale, Executive Chairman of TrustQuay, comments: "Our mission is to automate and digitalise the trust, corporate and fund services software sector - offering our customers the combination of best functional capabilities with the most modern, up-to-date technology. This enables customers to digitally transform their businesses to become more efficient and differentiate themselves in the market.

"I'd like to thank Silverfleet Capital for their support over the last three years. We're incredibly excited to reach this significant milestone and it is an excellent endorsement of our mission and progress over those three years. Hg has an amazing track record of supporting technology software providers to financial markets and we're excited about what this new tech expertise and resource will deliver for our customers, our team and our industry."

Richard Earnshaw, Director at Hg, said: "At Hg we focus on SaaS and technology businesses that are leading their sector towards change and a better way of working. TrustQuay is an exciting business which is applying this vision to the trust, corporate services and fund industry, having developed a quality, modern product and with ambitious future plans.  To date we've aggregated over a decade of experience in fintech, investing over $1 billion in more than 10 fintech leaders in the last five years alone. We're excited to apply this experience as we partner with Keith and a great entrepreneurial team."

Ian Oxley, Partner at Silverfleet Capital, comments: "TrustQuay is a high-quality business, and we are delighted to have helped the company achieve its objectives under our ownership. We have again demonstrated our skills at executing a high-growth plan through both organic expansion and acquisitions, and our ability to help our portfolio companies undergo significant digital transformation. Our thanks go to the TrustQuay management team who have continued to build on the global leading position of the business and to roll-out major new releases of the software including TrustQuay Online."

As part of the transaction, the TrustQuay management team continues in the business whilst the former majority owner Silverfleet Capital has fully exited its position.

The Hg team was advised by Skadden, Arps, Slate, Meagher & Flom LLP. The Silverfleet Capital team was advised by Eversheds Sutherland and Baird. The TrustQuay management team was advised by K&L Gates, Jamieson and BDO.

For further details:

Hg

Tom Eckersley +44 (0)208 148 5401

HgCapital Trust

Laura Dixon +44 (0)20 8396 0930

Brunswick

Azadeh Varzi +44 (0)207 404 5959

Hg@brunswickgroup.com

About HgCapital Trust plc

HgCapital Trust plc, whose shares are listed on the London Stock Exchange (ticker: HGT.L), gives investors exposure through a liquid vehicle to a portfolio of high-growth private companies in the software and services sector. The selection of new investments and creation of value in these businesses 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, SilverFleet and TrustQuay's websites are not incorporated into, and do not form part of, this announcement.