Hg
Hg specialises in the acquisition of technology and services companies in Europe and claims second place among European software companies, just behind SAP.
The company manages a portfolio of assets worth over $55Bn. Nic Humphries, who co-founded the technology business in 2001, runs the company with five partners who have also played a key role in its history.
A very clear investment philosophy
Hg targets companies that meet the following criteria:
- Recurring revenues with an organic growth rate of between 5% and 20% per year,
- High EBITDA margins (>40%) with the ability to improve profitability over the long term by accelerating the transition to SaaS,
- A dominant position in relevant market segments.
A fragmented market with a strong appetite for industrial players.
Hg 's presence in all three segments (small, mid and large) enables it to seize all market opportunities in the areas that interest it. The teams of each fund work independently, but collaborate effectively to share their knowledge and sector expertise.
Hg has a highly-structured transformation team (46 people), well-sized to implement the best operational recipes proven by the firm in its previous 200 transactions (as seen in the "Hg Playbook").
The depth of industrial research on a tech company
In the IT sector, the company focuses on eight very specific software segments for which it has in-depth expertise on key players, success factors and key performance indicators (KPIs).
Thanks to its high degree of specialisation, it is able to mobilise a large number of experts in each segment and to know each of these niches as well as, if not better than, the sector leaders.
In the Private Equity tech sector, Hg is the world leader in the acquisition of software companies. It is three times larger than its European competitors, and benefits from exceptional sourcing networks.
Hg considers its main competitors to be technology companies such as SAP and Dassault Systèmes, rather than Private Equity funds.
An exceptional track record
Thanks to its in-depth expertise, the company is able to implement highly effective economies of scale to outperform other Private Equity players:
- A precise selection of investments,
- Improved performances, thanks to a high-quality operations team equivalent to that of the best technology publishers,
- In-depth knowledge of industrial buyers to maximise the value of divestments.
One of the world's best track records in the tech buyout segment with a very low loss rate.
European competitors in technology Buyouts are clearly outstripped in terms of size and expertise,
No diversification plans
HG Capital Genesis 10
HG Capital Saturn 3
