HgCapital, the Manager of HgCapital Trust plc ("The Trust"), has announced that it has agreed the sale of Personal & Informatik AG (“P&I”), a leading provider of payroll and strategic HR software headquartered in Germany, to a company backed by funds of Permira, an international investment firm. The terms of this transaction have not been disclosed.
The sale of P&I represents the first exit from the HgCapital 7 Fund (December 2013 vintage), and delivers a 36% IRR and 2.3x investment multiple. HgCapital has retained a minority position of €70 million in P&I; the Trust’s share of this is valued at £6.0 million.
The Trust, the listed investment trust which participates in all HgCapital's investments alongside its institutional clients, will realise cash proceeds of approximately £31.9 million on completion of the transaction. When combined with the value of the retained minority position, this represents an uplift of £2.9 million (8%) or 8 pence per share over the carrying value of £35.0 million in the Net Asset Value ("NAV") of the Trust at 31 August 2016 which was based on the Directors' valuation as at 30 June 2016.
Based on the 31 August 2016 reported NAV (including the impact of the revaluation of the carried interest provision) the pro-forma NAV of the Trust is expected to increase to £586.0 million or 1,570.1 pence per share). The Trust’s liquid resources available for future deployment are estimated to be £72.0 million (12% of the pro-forma 31 August 2016 NAV). In addition, the Trust has access to a £40 million standby facility, which is currently undrawn.