HgCapital to sell down stake in IRIS Software

27th Dec 2023 07:26

(Sharecast News) - HgCapital Trust (HGT) announced a partial sale of IRIS Software Group (IRIS) to LGP, a private equity firm based in Los Angeles, on Wednesday.

The terms of the transaction were not disclosed, but the transaction valued its investment in IRIS at £99.8m.

HGT said it would receive a net distribution of £42.1m after reinvesting a portion of its proceeds in the business alongside other institutional clients of Hg investing through Hg Saturn.

As part of the transaction, Hg's Saturn 1 fund would fully exit its remaining position in IRIS.

HGT's exposure to IRIS would total £57.7mat closing, representing 2.5% of its net asset value (NAV).

As of 30 September, the pro-forma net asset value of HgCapital Trust was expected to be £2.3bn, or 498.5p per share.

Additionally, HGT's available liquid resources, including the undrawn bank facility of £350m for future deployment, were estimated to be £705m, constituting 31% of the pro-forma net asset value at the end of September.

The investment would also result in a reduction of HGT's outstanding commitments to invest in Hg transactions, which would stand at £852m, making up 37% of the September pro-forma net asset value.

Reporting by Josh White for Sharecast.com.