Our approach to investing 

HgT’s investments are managed by Hg, a leading investor in European and transatlantic software and services businesses.

Together we build enduring software and services leaders that transform how people work 

Hg has a European and transatlantic portfolio worth >$160 billion.

With over 400 employees across London, Munich, New York, Paris, and San Francisco, Hg has a current portfolio of c.50 businesses, worth >$160 billion aggregate enterprise value, with over 115,000 employees globally.

30+ years’ history of investing 

Hg was founded in 1990 as Mercury Asset Management and then became part of Merrill Lynch Asset Management (MLAM) in the late 90s. In 2000, the partners spun the business out of MLAM to become Hg, a fully independent leveraged buyout firm. The business remains 100% owned by its partners today. 

Hg has managed HgT since 1994.

Hg at a glance

030 +

years of investing

$ 025 bn

proceeds returned from software and services businesses at 3.1x gross MOIC / 32% gross IRR

0200 +

total investments

c.$ 075 bn

funds under management

Sector specialists in software and services 

Hg specialises in investing in software and services companies focused on eight core end markets (or ‘clusters’), with enterprise values of between £100 million and more than £10 billion.
Hg offers a deep level of understanding and expertise in these businesses.

Software

Software is our largest sector of investment. We focus on businesses providing B2B vertical market application software and data, regulatory software and fintech and internet infrastructure.

We have invested in high-quality market leaders which have strong sector reputations and diverse customer bases, and which feature subscription‑based business models generating predictable revenues and cash flows. With c.50 software investments in our portfolio, we bring a unique set of networks and insights to help support value creation in our businesses.

Services

Our services investments focus on companies with high levels of intellectual property, large, fragmented customer bases, long-term and stable customer relationships, and businesses which provide business‑critical services, preferably on a repeat or recurrent basis.

We target businesses with strong reputations within a niche, and we aim to grow and scale these businesses, either organically within existing markets or through acquisitions.

THE Hg ‘SWEET-SPOT’ MODEL

The Hg ‘sweet-spot’ model 

Hg has a clear and robust business model, focused on long-term, consistent and defensive growth, predominantly through investment in buyouts located throughout Europe and North America. We seek companies which share similar characteristics, often providing a platform for merger and acquisition (M&A) opportunities.

We believe that such companies have the potential for significant performance improvement, offering value creation support to the portfolio management teams.

The Hg “Sweet-spot” model


Sharing Hg know-how and experience

By virtue of the fact that Hg invests repeatedly in specific business models, our dedicated portfolio team has been able to tailor a differentiated approach to driving value creation during our ownership. Following each investment, our portfolio team works with the management of our investee companies to focus on a set of operational levers which is key to performance in an Hg ‘sweet-spot’ business model: growth, transformation, technology, cyber security, data analytics, ESG and talent. For each of these levers, the portfolio team has the experience and deep knowledge of best practices to help drive value creation, in collaboration with management. Every company can access the team, yet the nature of support can take a variety of forms, including: direct support, mentoring, and Hg portfolio company networking.

How we create value

We have operational expertise across a wide range of areas, reflecting where we see repeat value creation opportunities.

Data and AI

Harnessing the potential of data and analytics is a critical competitive advantage for any business.

 How we create value

Being able to measure and track performance allows you to react to customer needs, optimise operational performance and drive new revenue streams. Hg’s Data Team supports our companies across the data value creation lifecycle, from business intelligence, through to commercial optimisation and data monetisation. Combined with our range of proprietary data tools, portfolio-wide benchmarking, and deep bench of expertise, data becomes a powerful and compelling growth lever.

Product and tech

Product management and engineering combined are the engine room in modern technology companies.

 How we create value

Hg's Product Leaders support their portfolio counterparts in driving robust customer and market driven analysis of what their products need to do and why. We understand these needs, and support our portfolio colleagues in designing and deploying the most appropriate technology solutions. Collectively they are accountable for maximising the commercial opportunity, delighting the customer and creating awesome software.

Cyber 

Protecting Hg’s investments is crucial in the face of increasingly sophisticated cyber criminals and other malicious actors.

 How we create value

Our Cyber Security Team assesses the capabilities of all portfolio companies on an ongoing basis to ensure that they are adequately protected against current cyber threats. Given that defenders are in an arms race against attackers, the team drive and enable our Portfolio Companies to improve continuously through knowledge sharing, programme management, deep subject matter expertise, and our network of specialised partners.

Business systems 

It's no surprise that an organisation's foundation relies on its system architecture.

 How we create value

Our team helps a growing company realise the benefits of establishing and maintaining a modern, integrated, and scalable stack of business systems. Through business process automation, data-driven decision making and operational scalability, our team of experts bring extensive experience to drive impact and generate value.

ESG 

Stability, sustainability, resilience - the ability to endure. This should be the goal for any organisational leader. It certainly is for us at Hg.

 How we create value

We firmly believe that good ESG performance leads to better, more well managed and resourceful companies. Through our ESG diagnostics the team supports our businesses in identifying how they can be the best, most sustainable, version of themselves and we help them to take actions to achieve this. Whether it’s environmental issues - carbon footprinting and reduction targets - or social impact - diversity improvement and community engagement - our experienced ESG professionals provide both general advice and strategic thinking to drive sustainable improvements across the portfolio.

Finance and FP&A 

Financial health is the lifeblood of any business with long-term success in its sights.

 How we create value

Looking at more than just the numbers, the Hg Finance & Operations Team takes a holistic view of the business of our portfolio companies, connecting the dots across departments, functions, and timescales to support the growth, productivity, and efficiency aspirations of our investments. With skills in planning, modelling, forecasting, accounting, go-to-market, analysis, and operations, our team stands ready to assist in multiple ways. As part of Hg’s broader Portfolio Team, we bring hands-on knowledge, expertise, best practices, and tenacity to assist in furthering the ambitions and realization of our investments’ value creation initiatives.

Legal 

Helping legal teams reach full potential, enabling them to align with business ambitions and deliver outcomes supporting key initiatives.

 How we create value

We provide hands-on support across your Hg journey from guidance towards best-in-class compliance policies and how to professionalise by adopting legal tech and operational efficiencies, through to access to expertise on data privacy, M&A and anti-trust. With a network of around 50 like-minded GCs sharing best practice and the full-time support of Hg’s dedicated legal team, you’ll be on the fast-track to becoming a top-tier, professionalised legal franchise adding real value to your business.

Talent, org and HR 

The HR & Talent team focus on helping our family of companies grow value through people.

How we create value

Our expert HR and Talent Team provides support from C-Suite programmes through to full organisational design. Working with CEOs and CHROs to ensure that teams, structures and individuals in growing organisations are positioned for success. Working with our portfolio businesses to have the right leaders, organisations and HR frameworks to thrive.