Hg Capital Share Discussion Threads

[jaf111] 06/9/2012 07:19

Subs going well this morning - but still in a discount!!!!
Should get to 50p today.......

[2baffled] 05/9/2012 20:54

jaws,
Have you considered the sub. share [HGTS, ISA-able]?

(HG Capital Subscription shares give the holder the right to buy one HG Capital share at 950p on 31 May or 31 October in 2011 and 2012, or at 1,025p if exercised on 31 May 2013).

Compare [ADVFN Charts];-
HGT;


Against;-
HGTS;

[jaws6] 05/9/2012 11:45

at last seen 990 again

[damanko] 17/8/2012 07:37

HgCapital announces the sale of Mercury Pharma



London, 17 August 2012: HgCapital has today announced the sale, for £465 million, of Mercury Pharma, the UK-based speciality pharmaceutical company, to Cinven, the European private equity firm. Following the sale of Mercury Pharma, 20% of invested capital will have been realised by the HgCapital 2009 vintage fund, HgCapital 6.



Since the start of the global economic downturn in Q3 2008, HgCapital has realised a total of 15 investments, returning approximately £1.6 billion in proceeds to clients at a time of economic uncertainty. HgCapital's 2006 vintage fund, HgCapital 5 has already returned more than 120% of invested capital to date, from only five full and one partial exit including SLV (4.0x original cost, 45% IRR), Visma (4.1x original cost, 34% IRR) and SHL (3.1x original cost, 25% IRR).



Mercury Pharma is a speciality pharmaceutical company focused on the sale of niche prescription off-patent products. Mercury Pharma's portfolio is underpinned by strong intellectual property rights with 91% of revenue from owned-IP products. Based in the UK, the company was founded in 1989 and was listed on the London Stock Exchange from 1998-2009. It has 187 employees worldwide, including an operations centre in India and a direct sales presence in the UK, Ireland and the Netherlands.



Mercury Pharma was acquired by funds managed by HgCapital in December 2009 in a complex public to private transaction. The HgCapital Healthcare Team was attracted by the highly flexible, asset-light business model, focused on selling a diverse portfolio of well positioned products.


Since taking Mercury Pharma private, HgCapital has taken an active approach towards building value in the business. Mercury, under a new management team, quickly refocused on its niche pharmaceutical business, disposing of all the non-core consumer related businesses. Significant investment in the pharmaceutical business has been focussed on building a best in class business development team to drive long term sales growth. Further investment in improving quality and supply chain effectiveness has helped to drive significant improvements in profit. As a result of these changes Mercury Pharma has nearly doubled EBITDA under HgCapital's ownership.



Philipp Schwalber, Head of HgCapital's Healthcare team, said: "Mercury Pharma is the first exit for HgCapital 6, the second realisation by HgCapital's Healthcare Team in the last two years, and the most recent in a long line of public-to-private success stories for HgCapital. We initially identified the speciality pharmaceutical niche in 2007 and tracked Mercury Pharma for a number of years before launching our public-to-private offer in 2009. The realisation of Mercury Pharma marks the continued development of HgCapital's investment focus in the healthcare sector, as we continue to seek out businesses that enjoy niches of secular growth despite the challenges facing much of the healthcare space."



Commenting on the realisation, Lisa Stone, a Partner in HgCapital's Portfolio Management team, said: "The success of Mercury Pharma is a terrific example of HgCapital's commitment to building robust, healthy and growing businesses. All the hard work from Philipp and the management team, in refocusing the business and investing in growth, has paid off, enabling us to deliver a great result for clients in a challenging market."

[jaws6] 03/7/2012 18:11

Good RNS ,hold some of this .Will add if drop below 900

[damanko] 03/7/2012 08:10

HgCapital Trust's NAV rises on realisation of SHL



HgCapital has agreed to sell its investment in SHL. Upon completion of the transaction which is expected to happen early in August 2012, HgCapital Trust plc, the listed investment trust which invests in all HgCapital's deals alongside its institutional clients, will realise estimated cash proceeds of approximately £27.1 million. This represents an uplift of £5.4 million over the carrying value of £21.7 million in the Net Asset Value (NAV) of the Trust at 31 May 2012 which was based on the Directors' most recent valuation. On completion, the transaction will increase NAV per share by approximately 17.2 pence (basic) and 14.7 pence (fully diluted*). Based on the 31 May 2012 NAV and the impact of this transaction, the NAV of HgCapital Trust plc is estimated to be £349.1 million (1,096.9 pence per share basic; 1,075.3 pence per share fully diluted*).



The sale proceeds represent a multiple of more than three times the original cost of £9.0 million.



Based on the 31 May 2012 NAV and the effect of this transaction, liquid resources (including a £40 million undrawn bank facility) are estimated to increase to £100.5 million (29.2% of the estimated NAV).


*The calculation of fully diluted earnings per share assumes that all subscription shares in issue are exercised at their minimum price of 950 pence.


Set out below is the text of a press release issued today by HgCapital announcing the transaction.



HgCapital announces the sale of SHL



London, 3 July 2012: HgCapital has today announced the sale of SHL, the global leader in talent measurement, to The Corporate Executive Board Company ("CEB") (NYSE: EXBD) for $660 million.



SHL was acquired by funds managed by HgCapital in October 2006 as a public to private transaction and subsequently merged with Previsor, a US based competitor, in January 2011. The sale to CEB represents an investment multiple in excess of 3.1x original cost and a gross IRR of 26% over the investment period for HgCapital's investors.



The sale of SHL represents HgCapital's sixth realisation from its HgCapital 5 Fund, which now has delivered a realised investment multiple and IRR of 2.7x and 30% respectively. It will have returned over 120% of invested capital back to investors since HgCapital 5 was raised in 2006, with seven active investments still remaining in the portfolio. Since the start of the global economic downturn in the autumn of 2008, HgCapital has been an active seller realising a total of twelve investments over this period (versus an active unrealised portfolio of 24 investments) and returning approximately £1.1 billion in proceeds to clients at a time of economic uncertainty

[marben100] 18/5/2012 16:49

Further to my report on the Hg Capital Investment trust ( ), I can report that Hg Capital's portfolio manager for their care home businesses (including Voyage) has called me to explain their quality procedures, as promised.

Firstly, he pointed out that their homes specialised in high-acuity care, rather than elderly care. Fortunately, this care sub-sector is falling under less financial pressure than the much bigger elderly care sector. Secondly, he was able to report that a) comprehensive quality reports relating to their businesses were reviewed at each monthly Board meeting; b) quality audits, including unannounced inspections, were conducted by their own audit team; c) a confidential whistleblower line was publicised in each of their homes. He also described further measures they were taking to ensure that the highest ethical standards were maintained. Of course, this is in additon to the CQC inspections in the UK.

I feel pretty confident that the company is doing as much as it reasonably can to ensure that residents are treated with dignity and that their needs are met.

Regards,

Mark

[marben100] 17/5/2012 00:54

Hi Kimboy2,

No specifics on sales, but there was an indication that the company had considerable interest in some of its assets and might make realisations within the next 6 months. Given current market turmoil, personally I'm not counting on anything short term - so if they do make any decent realisations, that'll be a bonus.

In the meantime, just happy to sit and wait - and add to my already proportionately large holding if the share price falls much further!

Cheers,

Mark

[rambutan2] 15/5/2012 14:50

Earlier this month is was reported that they'd put Mercury Pharma (Goldshield) up for sale.

[kimboy2] 15/5/2012 14:10

Thank you very much for the write up and the efforts you have made.

Was there any chat about potential sales. I had got the impression that one or two were virtually done deals a little while ago

[jaws6] 15/5/2012 13:17

Tks mark, good info.

[david77] 15/5/2012 13:13

Thanks Mark

[marben100] 15/5/2012 12:03

I attended HGT's AGM and have written an extensive report on the company and the AGM here: (sorry, but you'll need to be a member of ShareSoc to read the report - details below)

I've been an investor since 2005 and it seems like a bargain at the current historically large discount to NAV. Especially so, as the company is in the early stages of the HgCapital 6 investment phase, its investee companies are growing well, despite macro issues, and good returns can be expected when the trust moves to the realisation phase. NB According to HgCapital's CEO, the average gain on realisation vs book value has been 56% historically.

If you're not already a member you can join ShareSoc as an associate member FOC, here:

Sorry not to just make the report publicly available, but considering that attending the meeting and writing the report has taken well over a day of my time, I don't think it's too much to ask that readers support a non-profit organisation that campaigns for shareholder rights, in return. I am a director of ShareSoc on a voluntary, unpaid basis.

Regards,

Mark

[aishah] 03/5/2012 21:44

Qundis investment announced today

[jaws6] 05/4/2012 07:41

RNS looks good today

[jaws6] 26/3/2012 09:34

RNS on divi out

[damanko] 16/3/2012 09:22

Overview from today's results:

Financial Highlights

§ Sales and EBITDA growth from top 20 buyout investments of +13% and +10% respectively over last 12 months to 31 December 2011.

§ Valuation multiple of 10.2x EBITDA (Dec 10: 9.7x) and debt multiple of 4.0x EBITDA (Dec 10: 3.6x) as at 31 December 2011.

§ Total available liquid resources were £94m (27% of NAV) with outstanding commitments of £195m (56% of NAV).

§ +15.7% p.a. 10-year compound annual growth rate of the share price on a total return basis vs. 4.8% p.a. from the FTSE All-Share Index on a total return basis to 31 December 2011.



Operational Highlights

§ £87m deployed over the period, principally in five new buyout investments.

§ £62m of cash proceeds from 2011 realisations; full exits achieved in aggregate at a 56% uplift to 31 December 2010 book value.

§ The Trust was chosen, for the seventh consecutive year, as Private Equity Investment Trust of the Year in the 'Investment Week' awards.



Events since 31 December 2011

§ Proposed final dividend for the year of 10.0 pence per ordinary share to be paid on 10 May 2012, subject to shareholder approval.

§ NAV per share at 29 February 2012 was 1,080.2p (diluted) and 1,102.7p (basic); movement from December mainly due to foreign exchange fluctuations.



Outlook

§ 80% of the balance sheet invested in buyouts of which c. 80% is in companies with a low exposure to the weak macro-economic cycle and only 20% is in companies where ratings and earnings are sensitive to the economy.

§ Market leading businesses, with low gearing in growth segments, well placed for platform builds.

§ Interest in a number of our businesses may result in successful realisations over the next 12 months.

§ New investment will continue to be highly selective by only investing in businesses that meet our thematic criteria and can be bought for value.

§ Owning a portfolio of quality companies run by talented managers should build significant shareholder value over the medium-term

[woracle] 30/1/2012 20:13

Thanks KB2. So if it fetches $700, there would be no uplift in the NAV from a sale.

[kimboy2] 30/1/2012 15:39

I think that they owned 8% orginally and then there was a re-financing when HGT in effect sold 50%.

That would leave them with 4%. The $700m price tag works out at the book value which is perhaps where they got it from.

I think SHLhas been doing pretty well recently and I think that the valuation increased from about £14m to £18m for HGT's share. With a bit of luck we should be well north of $700m.

At present the £18m valuation represents about 56p of HGT's value.

[woracle] 30/1/2012 15:22

Nice..SHL valued at $700m. What % does the trust own ?

[rambutan2] 30/1/2012 03:16

re above, yes they got it, and at present second largest holding.

Sale of SHL being mooted in the FT, it currently the fourth largest holding in the port at £18.7m...

[mangal] 24/9/2011 15:26

It's a bargain if they get it:

[ianbrewster] 07/6/2011 08:15

citywire's 'Fund of The Week'

[damanko] 04/4/2011 19:02

Aye.

Very strange how far this, RIT & Pantheon seem so far under the radar of most private investors. The way the trio have performed over the past 12-18 months, a few more posts might have been expected.

Could be that the majority of (private) holders are (dare I say.....) more mature than the average poster, and have little interest in financial bulletin boards.