Shares in HgCapital Trust (LSE:HGT) climbed 6% to 427.65p on Friday after the private equity investor reported robust trading across its portfolio and a 4% gain in estimated net asset value (NAV) for 2025, despite ongoing volatility in tech markets.
NAV per share stood at 561.9p as of 31 December, with net assets of £2.6 billion. The trust said strong performance from its underlying software and tech-enabled companies helped offset headwinds from falling market multiples and increased leverage.
Portfolio companies delivered revenue growth of 17% and earnings growth of 20%, maintaining operating margins of 34%. Investments during the year totalled £357 million, while realisations brought in £215 million, including exits from GTreasury and Intelerad at significant uplifts to carrying value.
Despite a sharp decline in public software shares in early 2026, which has dragged down listed valuations across the sector, HgCapital Trust's management emphasised the strength of its private portfolio.
The board said it believes the current share price undervalues the portfolio and is considering measures to reduce the discount to NAV, including share buybacks.
Hg, the trust’s manager, has also ramped up investment in AI capabilities, with chief investment officer Matthew Brockman highlighting AI’s role in reshaping software businesses across the portfolio.
Liquid resources stood at £410 million at the start of February, with £1.8 billion in outstanding fund commitments expected to be called over the next five years.