Hg, the Manager of HgCapital Trust plc (“HgT”), today announces a recapitalisation of The Citation Group, an international provider of tech-enabled compliance and certification solutions to small to medium-sized enterprises. As part of the transaction The Citation Group will welcome HarbourVest Partners, a global private markets investment manager, as a new investor in the business

The terms of the transaction have not been disclosed and is subject to customary conditions and regulatory approvals.

HgT, 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 HgT’s investment in The Citation Group at approximately £45.1 million. This would represent an uplift of £3.5 million (8% or 0.8 pence per share) over the carrying value of £41.6 million in the Net Asset Value (“NAV”) of HgT at 30 September 2024. HgT will receive a net realisation of approximately £13.5 million from The Citation Group, having re-invested a portion of its proceeds in the business alongside other institutional clients of Hg. HgT’s exposure to The Citation Group will be £31.6 million at closing representing approximately 1.3% of NAV.

Note that these figures only relate to HgT’s share of Hg’s overall investment in The Citation Group.

Based on the 30 September 2024 reported NAV, the pro-forma NAV of HgT is expected to be £2.4 billion (or 523.6 pence per share). HgT’s available liquid resources, which includes the undrawn bank facility of £277 million for future deployment (including all announced transactions and the interim dividend paid in October) are estimated to be £450 million (19% of the pro-forma 30 September 2024 NAV). The investment will reduce HgT’s outstanding commitments to invest in Hg transactions to approximately £649 million (27% of the pro-forma 30 September 2024 NAV).

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