HgCapital was appointed Manager of the Trust in 1994 and seeks to meet the Trust’s investment objective through a deep sector focus primarily targeting middle-market buyouts with enterprise values of between £50 million and £500 million, lower mid-market buyouts in the TMT sector between £20 million and £80 million and renewable power generating projects using proven technologies. This market offers a high volume of companies with proven financial performance and defensible market positions.
Our large, dedicated sector teams (Healthcare, Industrials, Services, TMT and Renewable Energy) operate across Europe and focus on specific sub-sectors - identifying and then developing expertise in specific investment ‘Themes’. Thematic investing represents the identification, through in-house research, of sub-sectors where various industry and macro factors combine to support attractive long-term growth across various European countries. By identifying and focusing on Themes, we are able to directly target opportunities and to invest repeatedly within a theme over multiple funds and cycles. This Thematic focus, and the potential for repeated investment, allows us to accumulate knowledge, benefiting our portfolio companies and improving returns.
While HgCapital primarily focuses its buyout investments in the UK, Germany and the Nordic Region, as well as selectively across the rest of Western Europe, our sector focus precedes geography, and we are therefore prepared to invest in other geographies in sectors, and especially Themes, in which we have previously made repeated investments.
HgCapital’s long-standing investment in establishing and maintaining deep sector expertise is a key differentiator in the European Private Equity environment.