Hg invests in smartTrade Technologies

RNS Number : 2573C

HgCapital Trust PLC

07 February 2020

 

Hg, the Manager of HgCapital Trust plc ("the Company"), today announces an investment in smartTrade Technologies, a leader in multi-asset electronic trading solutions.

HgCapital Trust plc will invest approximately £17.5 million in smartTrade Technologies, with other institutional clients of Hg investing alongside the Company through the Hg Mercury 2 Fund.

The Company, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.

Note that these figures only relate to HgCapital Trust's share of Hg's overall investment in smartTrade Technologies.

The Company's liquid resources available for future deployment (including all announced transactions, the interim dividend paid on 25 October 2019 and the issues of equity in November 2019 and December 2019) are estimated to be £78 million (8% of the 30 September pro-forma NAV of £1,023.2 million). In addition, the Company has access to an £80 million standby facility, which is currently undrawn. The investment will reduce the Company's outstanding commitments to invest in Hg transactions to approximately £233 million.

HgCapital Trust will release its annual results to 31 December 2019 on 9 March 2020.

Hg invests in smartTrade Technologies to accelerate its growth as a global leader in multi-asset electronic trading solutions

Hg's support will help continue innovation and R&D, strengthening smartTrade's position as one of the most technologically advanced players in the industry

7 February 2020. Hg, Europe's leading software investor, today announced that it has entered into an agreement to acquire stakes from Keensight Capital and Pléiade Venture in smartTrade Technologies ("smartTrade"), a leader in multi-asset electronic trading solutions, headquartered in Aix-en-Provence, France.  David VINCENT, CEO & co-Founder, and the smartTrade management team will remain invested in the business alongside Hg.

smartTrade is a managed services and hosted software provider for trading desks and a global leader in this sector. smartTrade's liquidity management solutions enable financial institutions to develop and run high-performance trading platforms throughout the world. The business has expanded rapidly in recent years and today has a global client base, with subsidiaries around the world, including in London, Geneva, Milan, New York, Tokyo and Singapore.

Hg has been investing in Capital Markets and Wealth and Asset Management technology for almost 20 years and has known the smartTrade team since 2015. During this time Hg has recognised smartTrade as a truly innovative business, which has developed leading, modular solutions (LiquidityFX and smartFI), used by sell-side and buy-side market participants. With an exceptional leadership team, smartTrade has achieved industry-leading technology credentials supported by well-run operations, with continued potential for growth, making it a compelling fit with Hg's expertise and capabilities.

Hg's investment will be made from the Mercury 2 Fund and represents the firm's 7^th investment in technology businesses serving the Capital Markets and Wealth and Asset Management sectors, including previous investments such as Ullink, a global multi-asset trading technology software provider (Paris); and more recently FE fundinfo, the global fund data and technology leader (London and Zurich).

David VINCENT, Chief Executive Officer & Co-Founder at smartTrade Technologies, said: "The success of our business is based on continued innovation and technological advancement, putting R&D at the heart of our business. Welcoming Hg, a real expert in software and technology in this sector, creates a truly compelling offering. I am personally very excited about the prospects of the business. Keensight Capital and Pléiade Venture have played a decisive role in our growth to date, and we are grateful of their involvement. Now, with Hg's support, alongside the smartTrade team, I am committed to further developing a great service for our customers, as they look to modernise their own systems."

This proposed investment is subject to French workers' council consultations and customary clearances. The terms of the transaction are not disclosed.

Hg was advised on the investment by White & Case, Deloitte and Bryan, Garnier & Co. smartTrade was advised by Arma Partners and Hoche Partners.

For further details:

Hg

Laura Dixon                                                                                               [phone]

Brunswick

Alice Gibb and Sam Chiene                                                                     [phone]

About HgCapital Trust plc

HgCapital Trust plc, whose shares are listed on the London Stock Exchange (ticker: HGT.L), gives investors exposure through a liquid vehicle to a portfolio of high-growth private companies in the software and services sector. The selection of new investments and creation of value in these businesses are managed by Hg, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors. For further details, please see www.hgcapitaltrust.com.

The contents of the Hg, HgCapital Trust and smartTrade's websites are not incorporated into, and do not form part of, this announcement.

 

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