Building Businesses Together Know-how News Home About us About Us Hg is a specialist private equity investor focused on software and service businesses Hg is committed to building businesses that change the way we all do business, through deep sector specialisation and dedicated operational support. c.$1bn funds under management Hg’s vision is to be the most sought after private equity investor within our sector focus, being a partner of choice for management teams and providing a rewarding environment for Hg colleagues. Hg has a clear investment approach, targeting Software and Services companies operating in “Hg clusters” growing faster than the broader economy. We primarily seek controlling equity buyout investments in businesses headquartered in Europe and North America. Hg’s objective is to pursue investment theses supporting long-term growth, leveraging its expertise working with Software and Services companies to implement initiatives designed to maximise organic expansion, as well as through rolling up fragmented sectors, over typical hold periods of approximately five years. >$1bn aggregate EV (30 Sept 2021 PF) Hg has led over 170 investments in the software and services sector during the last 25 years. This focus means we have developed an institutional expertise and a deep understanding of the markets and businesses in which we invest. For further detail, our latest factsheet can be downloaded here. On an aggregated basis, the Hg portfolio would represent the second largest, and fastest growing, software business in Europe. The Power of the Portfolio Hg has a unique approach and strategy, with a focus on achieving scale in tightly defined clusters of expertise. As a result we have assembled a large portfolio of companies and business models that share similar characteristics, but differ in size and maturity. This creates a natural environment for knowledge sharing, creating a network effect to drive best practices and value creation initiatives. This is why we believe in collaboration and the ‘power of the portfolio’. This scale and focus enables our businesses to benefit from being part of one larger organisation, whilst retaining their own identity. >1 highly regarded institutional investors Hg’s investment teams have a flexible approach in terms of both size and horizon. This means that at any given time, the Hg portfolio will comprise more than thirty software and services businesses with similar characteristics, but of different sizes, end market focus, and maturity profiles. These characteristics comprises businesses models that have a: Business critical need delivered as software or service Subscription or repeat revenue model Utilising years of accumulated IP > high margin Fragmented customer base This flexible investment approach is made possible by three buyout strategies, with deal sizes ranging from $50 million to over $9 billion: The Saturn funds focus on larger-cap companies with enterprise values above $1.7 billion. Hg’s typical hold will be between $370 million and $760 million and we aim to make between eight to ten investments in the latest fund. The Genesis funds focus on mid-market companies with enterprise values between $560 million and $1.7 billion. Hg’s typical hold will be between $200 million and $590 million and we aim to make between ten to twelve investments in the latest fund. The Mercury funds focus on smaller-cap companies with enterprise values between $110 million and $560 million. Hg’s typical hold will be between $60 million and $190 million and we aim to make between ten to twelve investments in the latest fund. c1 employees in three investment offices Today Hg has c.240 employees representing the largest technology investment team in Europe. We have three investment offices based in London, Munich and New York, managing funds under management of c.$40 billion and serving more than 150 highly regarded institutional investors, including private and public pension funds, insurance companies, endowments and foundations. Hg is itself an entrepreneurially-led fast growing business 100% owned and managed by its Partners. The company is committed to being a responsible investor and, as such, is a signatory of the UN Principles for Responsible Investment. We are also delighted to be a sponsor of Level 20, the not-for-profit organisation established to inspire women to join and succeed in the private equity industry. A little bird told me... @HgCapital 'Diversity means welcoming more senior people in from other industries'. Hg's Dawn Marriot speaks to @level20org, explaining why she’s calling on the #PE sector to expand its view of diversity to include encouraging more outsider senior people. https://t.co/yHxEVPcaMX https://t.co/wEss1XPElT 25 November @HgCapital In this episode of Orbit, @benevity's Bryan de Lottinville, speaks to Hg’s Nic Humphries about the role of #purpose in a #tech or #software business and how company leaders can balance focussing on growth, profit or purpose. Listen now: https://t.co/nZxVD0FV1A https://t.co/cFuMAIX4ji 24 November @HgCapital RT @LGBTGreat: The first questions for today are: How can we amplify the voices of those who are unrepresented? What does good allyship loo… 23 November Follow @HgCapital © 2021 Hg Legal + Privacy Governance Modern Slavery Site map Accessibility Newsletters Keep up to date with all the latest news from Hg and our portfolio businesses. 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