TIDMHGT
RNS Number : 2334W
HgCapital Trust PLC
08 December 2023
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
that it has agreed a realisation of GGW Group ("GGW"), one of the
leading European insurance brokerage platforms for small and
medium-sized enterprises ("Mittelstand"), with Permira investing in
the business.
The terms of the transaction have not been disclosed and
completion is subject to closing conditions.
HGT, whose shares are listed on the London Stock Exchange, gives
private and institutional investors the opportunity to participate
in all Hg's investments.
This transaction values HGT's investment in GGW at approximately
GBP93.8 million. This would represent an uplift of GBP27.0 million
(40% or 5.9 pence per share) over the carrying value of GBP66.8
million in the Net Asset Value ("NAV") of HGT at 30 September
2023.
Note that these figures only relate to HgCapital Trust's share
of Hg's overall investment in GGW.
Based on the 30 September 2023 reported NAV, the pro-forma NAV
of the Trust is expected to be GBP2.3 billion (or 498.5 pence per
share). HGT's available liquid resources, which includes the
undrawn bank facility of GBP350 million for future deployment
(including all announced transactions and the interim dividend paid
in October) are estimated to be GBP760 million (33% of the
pro-forma 30 September 2023 NAV).
GGW Group secures investment from Permira
as the firm scales as a leading insurance brokerage group in
Europe
Frankfurt, Germany - 8 December 2023: Permira, the global
private equity firm, today announced that a company backed by the
Permira funds has agreed to acquire GGW Group. GGW Group is one of
the leading European insurance brokerage platforms for small and
medium-sized enterprises ("Mittelstand") currently owned by Hg, a
leading investor in European and transatlantic software and
services businesses. Closing is subject to regulatory clearances
and expected in the second quarter 2024.
Founded by CEO Tobias Warweg, the Group has driven a best in
class insurance brokerage platform in Germany over the last 3
years. Today, more than 50 brokerage companies are operating under
the roof of GGW Group, advising small and medium-size enterprises
in Europe.
Tobias Warweg, CEO of GGW Group, said: "The backing from the
Permira funds marks an important milestone and yet we are only at
the very beginning of GGW's success story. We are looking forward
to working with Permira and are excited about the future as we
continue to grow in Germany and expand further across Europe.
Thanks to my fantastic colleagues we have surpassed all of our
expectations, and quickly become a leading commercial insurance
distribution platform in Germany and other European countries. The
partnership with Hg has been a core pillar for our success."
GGW Group fits the Permira funds' Services strategy of investing
in leading platforms in resilient growth markets with great revenue
quality and embedded value creation potential. GGW Group offers
attractive value to brokers joining the platform - offering scale
benefits, breadth of offering across risk types and client benefits
from going to market jointly. The Permira funds intend to support
GGW Group in its acquisitive growth strategy in the highly
fragmented German and European insurance brokerage industry.
Philip Muelder, Head of the Services sector at Permira, said :
"The Permira Funds are excited to support GGW Group and the
management team on their growth journey towards becoming the No 1
insurance brokerage for small and medium sized enterprises. Tobias
and his team have built a fantastic platform for leading B2B
brokers who can offer the best individual risk concepts and
insurance solutions to their clients through the integrated
platform of GGW Group. We are looking forward to supporting Tobias
and GGW Group writing the next chapter of the growth story
together."
Florian Kreuzer, Head of DACH at Permira, said: "With GGW Group,
the Permira Funds invest in another leading services platform in
Germany after the acquisition of Engel & Völkers two years ago.
This underlines our team's strong expertise in one of our key
growth sectors in the DACH region - besides being one of the
largest investors in technology, healthcare and consumer. Permira
has a long and proven track-record of successfully supporting
companies in their transformation journey towards becoming
stronger, more international and more digital."
Initiated and led by Tobias Warweg and with the help of Hg in
2020, the group has attracted a rising number of partners to the
platform which was one of the key growth drivers in recent years.
Decades of experience in the insurance sector, Hg's local
relationships and a trusted partnership with Tobias, enabled the
foundation of a highly entrepreneurial brokerage group.
Justin von Simson and Benedikt Joeris, both Partners at Hg,
said: "This investment really highlights what gets us out of bed in
the morning at Hg. It started as an innovative and very
entrepreneurial idea, building a high-quality business alongside a
long-trusted partner, in a sector we've studied over decades. We're
delighted for the team and look forward to seeing their continued
success."
For further details:
Hg
Tom Eckersley +44 (0)208 148 5401
HGT
Laura Dixon +44 (0)20 8396 0930
Brunswick
Azadeh Varzi +44 (0)207 404 5959
Hg@brunswickgroup.com
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. GGW and Permira
websites are not incorporated into, and do not form part of, this
announcement.
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END
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