London, 15 November 2007:
HgCapital Trust plc (or the “Trust”) was announced as the winner of  “Private equity investment trust of the year” at this year's Investment Week Awards. The Trust is managed by HgCapital, the European sector-focused private equity investor.

This is the third year in a row that the Trust has received the award and is further recognition of HgCapital’s ability to generate consistent returns and sector-leading performance. No other company has ever won the award for three consecutive years.

Over the 10 years to 31 October 2007, the Trust delivered a share price total return of 19.0% per annum against a total return of 7.3% in the FTSE All-Share.  In the year to 31 October 2007, the share price growth was 21.8% against 13.6% in the FTSE All-Share.

During the 12 months to 31 October 2007, £73.0 million of proceeds were realised from the portfolio from the sale of a number of portfolio companies including the highly successful joint disposal of CS Group and IRIS Software and the disposal of Hirschmann Electronics. Over the life of these investments, this basket generated a compound annual rate of return in excess of 75% and a cost multiple of 3.5x. Excluded from the above is the sale of Schenck that completed early in November, realising proceeds of £34.0 million, resulting in a compound annual rate of return of 85% over the life of the investment and a cost multiple of 3.0x.

In the same period, £45.2m of capital was deployed in new investment opportunities including the following acquisitions: Schleich, the leading producer of plastic toy figurines; Americana, the maker of the Bench and Hooch clothing brands; SLV, one of the fastest-growing manufacturers of innovative lighting systems in Europe; Mondo, the global talc mining group; and Fabory, the leading distributor of industrial fasteners in the Benelux region.

HgCapital took over management of the Trust in 1994 and the market capitalisation has since grown to £209 million. The Trust participates in all HgCapital’s investments across its buyout and energy funds. At 31 October 2007 the Company’s portfolio consisted of 40 investments, of which the 20 principal investments represented over 93% of the portfolio valuation. 

Nic Humphries, Chief Executive of HgCapital, commented:
“Our sector-focused strategy enables us to make swift, accurate investment decisions and our proactive approach to portfolio management helps to drive incremental value. This combination is designed to benefit both our investments and our investors through all market conditions”.

Roger Mountford, Chairman of HgCapital Trust plc, commented:
“HgCapital has also shown a consistent ability to be selected as preferred investor where there is a competitive sale process and to complete transactions efficiently. Having access to substantial liquidity at this time places the Company in a strong position to take advantage of changing market conditions so as to continue to reward long-term investment in the Company’s shares. Private equity is firmly establishing itself as a key addition to a well diversified portfolio.”