TMT as a sector covers a very large market. Driven by our deep sector approach, HgCapital’s TMT team is focused on specific sub-sectors including vertical market application software, private electronic marketplaces, B2B media information/publishing and telecoms / datacentre operators. Within these sub-sectors we have invested in high-quality, market-leaders which have strong and defensible market positions, diverse customer bases, and which feature subscription-based business models generating predictable revenues and cash flows. We regularly conduct top-down research within the wider TMT sector, to continue to identify and assess further repeatable investment themes where we can invest our time to develop proprietary expertise.
The TMT sector team has completed numerous public-to-private buyouts, corporate disposals, secondary private equity buyouts, and the recapitalisation of owner-operated businesses. Our well-resourced, dedicated team means that we are well placed to identify, assess and complete investments quickly and thoroughly, whatever the nature of the transaction. We work to bring this experience and knowledge to support companies’ existing management teams, aiming to have the knowledge of a trade buyer coupled with the speed and focused delivery of a financial buyer. The team benefits from the depth and breadth of a cumulative 60 years of TMT private equity experience, and is complemented by an extensive network of industry experts and advisors. A good example of taking a strong regional player, and then helping it scale to become a regional technology champion is Visma.
Given the breadth of opportunity in European TMT, HgCapital invests in the sector from two funds. The HgCapital 7 buyout fund targets businesses above £100 million enterprise value. The HgCapital Mercury Fund is invested by a discrete team and targets smaller buyouts (up to £100 million) but in exactly the same TMT sub-sectors. Investing two funds across the sector allows us to bring significant team resource to bear on the sector and provides a very deep resource for the management teams that we support.