HgCapital announces investment in Baldwins

RNS Number : 2764M

HgCapital Trust PLC

12 October 2016

 

12 October 2016

HgCapital, the Manager of HgCapital Trust plc ("The Trust"), today announces an investment in Baldwins, one of the UK's largest firms of independent accountants. The terms of this transaction were not disclosed.

HgCapital Trust plc will invest in Baldwins alongside other institutional clients of HgCapital, who will participate through the HgCapital 7 Fund. The Trust, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all HgCapital's investments. The Trust will contribute a total of approximately £2.0 million.

Following completion of this investment, the HgCapital 7 Fund, will be approximately 76% invested.

Based on the 30 September 2016 reported NAV, the Trust's liquid resources available for future deployment, including all announced transactions, are estimated to be £47 million (8% of the pro-forma 30 September 2016 NAV). In addition, the Trust has access to a £40 million standby facility, which is currently undrawn. The transaction will reduce the Trust's outstanding commitments to invest in HgCapital deals to approximately £70 million (12% of the pro-forma 30 September 2016 NAV).

CogitalGroup, which is backed by HgCapital, announces an investment in Baldwins and the launch of the new Group

·      CogitalGroup will consist of Blick Rothenberg, the former BPO Division of Visma and Baldwins

·      The Group will provide outsourcing, accounting, payroll, taxation, financial and other advisory services to a broad range of businesses including entrepreneurial businesses and high net worth individuals

·      Pro-forma revenue of the Group will be circa £300 million

12 October 2016, London: CogitalGroup, which is backed by HgCapital, a leading investor in the accounting services and technology space, today announces an investment in Baldwins, one of the UK's largest firms of independent accountants. The terms of this transaction were not disclosed.

Baldwins is a fast growing firm of accountants focused on accounting, tax and related services to the vital entrepreneurial segment of the UK economy. The firm has 27 offices across the UK employing c. 650 people. The business has grown rapidly based on high quality client service and a series of acquisitions. Baldwins plans to continue its strategy of acquiring quality firms as it builds out its regional network of practices. Its existing management team will continue to lead and drive this strategy.

John Baldwin, Director of Baldwins said "We undertook significant diligence on who to work with in relation to our future investment partners and we are delighted to have the opportunity to join CogitalGroup and work with HgCapital. We are also pleased to welcome John Connolly onto our board who, with his undoubted background as former Global Chairman of Deloitte, will bring a level of expertise and experience necessary to achieve our goals and aspirations."

The Baldwins investment follows on from the announcement that HgCapital has agreed the acquisition of Visma BPO, a leading provider of outsourced accounting, payroll and HR services to 20,000 businesses in the Nordic region. Visma BPO brings leading technology that both assists practice accountants in the delivery of their service and also enhances the client experience through easier and more effective client/adviser collaboration.

Roar Wiik Andreassen, CEO Nordics and International said: "We are very happy to be joining this new Group and retaining a relationship with HgCapital which has been a long term shareholder in Visma. I am confident that we will develop in the right direction and further strengthen our services and solutions in the future."

In July, HgCapital also announced an investment in Blick Rothenberg, a UK leading provider of accounting, audit and tax services based in London.

Blick Rothenberg, Visma BPO and Baldwins will form the newly launched CogitalGroup with each business continuing with their existing brands. The CogitalGroup, chaired by John Connolly, former Global Chairman of Deloitte and for 12 years CEO of the UK firm, has been established to create a new presence in the advisory services market. When the transactions complete over the next few weeks the group will have over 3,200 people based in Norway, Sweden, Denmark, Finland and the UK and with a significant nearshore centre in Romania. The pro-forma group revenue will be circa £300 million.

John Connolly said: "This is a major landmark for CogitalGroup and is part of our strategy to build a different kind of advisory business, underpinned by exceptional levels of innovation and client-focused service. We are extremely excited about our future and strongly believe that there is a place in the market for a firm focused on entrepreneurial businesses and high net worth individuals, delivering a personal service whilst harnessing the value-enhancing role of technology.

"Baldwins is a company I have known and admired for some time and I am delighted that we now have the opportunity to work with John and his team. Along with our colleagues at Blick Rothenberg and Visma BPO, they will help take CogitalGroup to the next level."

The CogitalGroup has been backed by HgCapital who have a deep understanding of trends in this sector and a proven, sector-focused approach of investing in leading regulatory-driven businesses in and around the accounting and tax compliance space.

Thorsten Toepfer, a director of HgCapital commented: "This latest investment is in line with HgCapital's sector-focused approach and reflects our considerable experience in this area. We are proud to be investing in CogitalGroup, and working together our goal is to build a substantial international business that provides superior service to entrepreneurial companies and business owners and managers."

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For further details:

HgCapital

Laura Dixon	[phone]

Maitland

Tom Eckersley	[phone]
Jamie Dunkley	[phone]

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange (ticker: HGT.L). The Trust is a client of HgCapital, giving investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. New investments and existing portfolio companies are managed by HgCapital, 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.

Neither the contents of HgCapital Trust's, HgCapital's, Baldwins', Visma's or Blick Rothenberg's websites nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

 

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