TIDMHGT
RNS Number : 4111Q
HgCapital Trust PLC
06 June 2018
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 GBP16.8 million. This would represent an uplift of
GBP6.7 million (66%) or 18 pence per share over the carrying value
of GBP10.1 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 GBP742.6 million (or 1,989.6 pence per share). The
Company will realise estimated cash proceeds of approximately
GBP13.1 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 GBP200 million (27% of
the pro-forma 30 April 2018 NAV). In addition, the Company has
access to a GBP80 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 16(th) realisation across all Hg funds in the
last 18 months - returning over GBP3 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 16(th) realisation
across all Hg funds in the last 18 months, which have in aggregate
returned over GBP3 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
Laura Dixon +44 (0)20 7089 7888
Maitland
Vikki Kosmalska and Seda Ambartsumian +44 (0)20 7379 5151
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.
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END
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