Hg announces an investment in BrightPay

Hg Capital Trust plc

Hg, the Manager of HgCapital Trust plc ("the Company"), today announces an investment in BrightPay, a provider of Accounting and HR payroll software to SMEs in Ireland and the UK.

The terms of the investment are not disclosed.

In early 2018, the Company made a £75 million commitment to invest in Transition Capital ("the Fund") and is the sole investor in the Fund. HgCapital Trust plc will invest approximately £15.4 million in BrightPay, representing the Fund's first investment to date.

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.

Based on the 31 August 2018 NAV, the Company's liquid resources available for future deployment, including all announced transactions, are estimated to be £139 million (18% of the 31 August 2018 NAV of £772.5 million). In addition, the Company has access to an £80 million standby facility, which is currently undrawn. The investment will reduce the Company's outstanding commitments to invest in Hg transactions over the next two to three years to approximately £460 million.

Hg announces an investment in BrightPay

10 September 2018: Hg today announces that it has agreed a first investment of Transition Capital in BrightPay, a provider of Accounting and HR payroll software to SMEs in Ireland and the UK.

The terms of the investment are not disclosed.

Hg's structured minority investment strategy will fund the investment in BrightPay. Transition Capital offers privately-owned businesses an attractive alternative to a minority equity sale, through structured equity, which gives entrepreneurs access to the support of Hg and its network, whilst retaining control of their business.

Based near Dublin, BrightPay provides easy-to-use and cutting-edge software solutions to enable SMEs to manage payroll, supported by excellent customer service. BrightPay's software is used by over 120,000 employers across the UK and Ireland under two brands, BrightPay and Thesaurus Software.

BrightPay's business of Accounting and HR payroll software is a very familiar sector to Hg and represents the 10th investment in businesses within this space. Payroll in Ireland is scheduled to undergo significant change from January 2019, as Ireland rolls out PAYE modernisation, which will require employers to report PAYE in real time to the Irish Revenue Commissioners ("Revenue"). BrightPay has invested significantly ahead of this change to prepare to support Irish SMEs through this transition.

Peter Miholich, Director at Hg, said: "We have been really impressed by the dedication of the BrightPay team to delivering great software and outstanding service to their customers. We look forward to partnering with Paul, Ross and the team to take BrightPay to the next stage of its development, adding our experience and strong track-record of working with successful businesses in Accounting and Payroll software."

Paul Byrne, Founder and Managing Director at BrightPay, said: "Hg is a hugely credible investor in this sector and it's great to secure an investment from a firm who both knows our market and has the experience to help us develop the business."

For further details:

Hg

Maitland

About BrightPay

Established in 1991, BrightPay has been trading for almost 30 years offering payroll, HR and accounting software products to Irish and UK businesses and accountants. We provide powerful software that is both cost effective and easy to use. Our suite of payroll and HR products save businesses a considerable amount of time by utilising automation and innovative technology. Our products are used by over 120,000 (and counting) businesses across the UK and Ireland. We are a passionate team who strive on the excitement and challenge of continuous growth, improvement and development. Our plans for the future are big! https://www.brightpay.co.uk/ 

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 technology and tech-enabled 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 HgCapital Trust, Hg and Brightpay's 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.