HgCapital Trust NAV stabilises despite software valuation squeeze
By Iain Gilbert
Date: Monday 10 Aug 2026
(Sharecast News) - Investment trust HgCapital Trust said on Monday that estimated net asset values were broadly unchanged in the second quarter, as strong trading across its portfolio offset a further contraction in software valuation multiples.
The trust, which gives public‑market investors access to HgCapital's large portfolio of unquoted European technology businesses, reported an estimated net asset value per share of 530.7p as of 30 June. NAV total return was 0.5% in Q2, leaving the first‑half outcome at ‑4.9% after a weaker first quarter. The share price total return was ‑2.6% in Q2 and ‑24.9% for H1.
HgCapital Trust said underlying trading remained robust, with last‑twelve‑month revenues and underlying earnings growth of 16% and 19%, respectively, and margins of 34%. Organic growth came in at 11% and 17%, respectively.
However, public‑market software valuations continued to fall amid investor caution over AI's impact on the sector, pushing the weighted average enterprise value-to-EBITDA multiple down to 22.9x from 25.2x at year‑end. Multiple compression reduced portfolio valuations by 13% over H1, partly offsetting an 11% uplift from trading.
Net debt to EBITDA improved to 6.9x, while investment activity totalled £146m, including new stakes in OneStream and Rightsline. Realisations reached £134m, with full exits averaging a 31% uplift to carrying value. The trust also bought back £19m of shares and ended the period with £254m of available liquid resources.
Outstanding commitments to Hg funds stood at £2bn, expected to be drawn over four to five years. Hg plans to increase its strategic ownership of the trust from around 6% to more than 15% over the medium term.
Hg said broader portfolio activity remained strong, with eight liquidity events year‑to‑date and continued investor appetite for mission‑critical software businesses.
As of 0930 BST, HgCapital shares were up 0.25% at 397p.
Reporting by Iain Gilbert at Sharecast.com
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