HgCapital Trust announces partial exit from Trackunit

(Sharecast News) - HgCapital Trust announced a partial exit from its investment in Trackunit, a software-as-a-service (SaaS) and operating data platform provider for the construction industry, on Monday, through a transaction with the private equity arm of Goldman Sachs Alternatives. The FTSE 250 company said the financial terms of the deal were not being disclosed, with the transaction remaining subject to regulatory approval, and completion expected in the early summer.

It said the deal valued its investment in Trackunit at about £53.4m, representing an uplift of £2.8m, or 6%, over its previous carrying value of £50.6m as of 31 December.

The trust would receive net realisation proceeds of £21.1m, having reinvested part of its proceeds alongside other Hg institutional clients.

Following the transaction, HgCapital Trust's remaining exposure to Trackunit would stand at £32.3m, representing around 1.3% of its estimated net asset value.

Based on the estimated NAV as of 31 December, the pro-forma NAV of HgCapital Trust was expected to be £2.5bn, or 544.6p per share.

The trust's available liquid resources, including an undrawn bank facility of £326m, were estimated at £462m, equivalent to 19% of the pro-forma NAV.

Outstanding commitments to Hg transactions totalled approximately £643m, or 26% of NAV.

Trackunit, founded in 2003 and based in Denmark, provides digital connectivity solutions for the construction industry, helping equipment manufacturers, rental firms, and contractors enhance operational efficiency.

Goldman Sachs Alternatives, which previously held a majority stake in the company from 2015 to 2021, was acquiring the business from funds advised by Hg and GRO Capital.

As part of the deal, Hg would retain a stake in Trackunit.

"Trackunit is a prime example of how data-rich software businesses can capitalise on their structural data advantage through AI and continue to expand their customer proposition," said Hg partner Nick Jordan and director Soren Holt in a joint statement.

"Our investment in this business has been about fostering this innovation and scaling a category-leading SaaS business.

"We are pleased to continue supporting Trackunit alongside Goldman Sachs Alternatives, ensuring the company has the resources and expertise to realize its long-term purpose and industry-changing ambitions."

At 0843 GMT, shares in HgCapital Trust were up 0.49% at 521.52p.

Reporting by Josh White for Sharecast.com.