|This article may rely excessively on sources too closely associated with the subject, preventing the article from being verifiable and neutral. (May 2012)|
|Type||Private limited company|
|Predecessor(s)||Mercury Private Equity|
|Headquarters||London, United Kingdom and Munich, Germany|
|Products||Private equity funds, Leveraged buyout|
|Total assets||$8.7 billion USD|
HgCapital is a private equity firm with a deep sector focus primarily targeting middle-market buyouts with enterprise values of between £50 million and £500 million across the Healthcare, Industrials, Services and TMT sectors, lower mid-market buyouts in the TMT sector between £20 million and £80 million and renewable energy infrastructure projects using proven technologies. This market offers a high volume of companies with proven financial performance and defensible market positions.
With over 100 employees in two investment offices in London and Munich, HgCapital has assets under management of £5.7 billion, serving over 100 highly regarded institutional investors, including private and public pension funds, endowments, insurance companies and fund of funds.
HgCapital began life as Mercury Private Equity, the private equity arm of Mercury Asset Management plc, a long-established UK-based asset management firm. Mercury Asset Management was acquired by Merrill Lynch in 1997. In December 2000, the executives of Mercury Private Equity negotiated independence from Merrill Lynch, and HgCapital was created as a fully independent firm, wholly owned by its partners and employees, who together work with a common purpose and culture.
HgCapital invests in five sectors: Healthcare, Industrials, Services, TMT and Renewable Energy (separately, via a dedicated fund). It is HgCapital's belief that a deep sector focus makes them better able to select the most attractive investment opportunities and to be the most qualified investor to support the management of those companies. The Company has a long-standing investment in establishing and maintaining deep sector expertise which is a key differentiator in the European Private Equity environment.
While the investment approach is sector-driven, HgCapital primarily focuses its buyout investments in the UK, Germany and the Nordic Region, as well as selectively across the rest of Western Europe. However, a sector focus precedes geography, and therefore investments may be made in other geographies, in sub-sectors where HgCapital has previously made repeated investments.
HgCapital's large, dedicated sector teams 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, the sector teams 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 HgCapital to accumulate knowledge, to the benefit not only of the portfolio companies and but also ultimately to the investors in HgCapital funds, by sharing best practices across similar investments and improving returns in a virtuous cycle of improvement. An example of an investment Theme is the SME regulatory software space where the HgCapital TMT team has now made six investments.
HgCapital Funds' portfolio (2012)
|Company||Main country of operations||Sector|
|Iris Software Group||United Kingdom||TMT|
|Manx Telecom||Isle of Man||TMT|
|Ondina||United Kingdom||Renewable Energy|
|Sporting Index||United Kingdom||Other|
|Swedish Wind - Venus Vind||Sweden||Renewable Energy|
|Voyage Group||United Kingdom||Healthcare|