The firm reported net assets of £2.4bn, with its share price seeing a sharp decline of 24.9% on a total return basis, and market capitalisation at £1.7bn.

It reported an interim dividend of 2.0p per share, unchanged from 2025, with LTM revenue and operating income growth of 16% and 19% respectively for the portfolio (11% and 17% on an organic basis), and operating income margins of 34%.

Jim Strang, chairman at Hg Capital highlighted the private equity trust’s 22.6% discount “remains materially wider than historic levels and does not reflect the value or the future prospects of the underlying portfolio”.

It widened from 9.7% at the start of the year, before hitting a low of 38.9% in May, after a “sharp and indiscriminate sell-off” in software and data companies, which HgT’s portfolio specialises in.

Total investments were £146m and gross realisations were £134m during the period. Full exits completed at an average uplift of 31% to prior carrying value, above the 10-year average uplift figure of 29%.

Available liquid resources stood at £254m (including a £375m credit facility, of which £134m was drawn as at 30 June 2026). Outstanding commitments to Hg funds stood at £2.0bn, of which £1.8bn is expected to be called over the next four to five years.

The trust reported share buybacks of £19m over the period, and announced plans to increase its strategic ownership from around 6% to more than 15% over the medium term.

NAV per share total return for the first half of 2026 was down 4.9%, comprising a decline of 5.4% in the first quarter followed by a broadly flat +0.5% in the second quarter as public market valuations stabilised.

It said in a statement: “On a long-term basis, HgT has achieved a NAV and share price total return of 15.1% per annum and 14.4% per annum respectively over the past 10 years, outperforming the FTSE All-Share Index return of 8.7% p.a. over the same period.”

Ben Maiden, partner and chief financial officer at Hg, said: “The core attraction of this portfolio remains its ability to compound earnings growth through volatile markets. AI is increasingly additive to that, both through new products reaching customers and through operational efficiency across the portfolio. Combined with an active M&A environment, we see multiple levers for continued value creation.

“The market is asking whether AI is a tailwind or a threat to software. Across our own portfolio, we are now seeing the answer more clearly: AI products are gaining real customer traction, and bookings are growing.”

Mr Strang said: “While HgT’s share price performance during the period was disappointing, this core driver of long-term shareholder value, together with Hg’s leadership in AI and a gradual recovery in the M&A market for technology companies, gives the board grounds for optimism about prospects for the second half of the year.

“The first half of 2026 saw a sharp and indiscriminate sell-off in public market software companies, reflecting market concerns over the potential negative impact of artificial intelligence (‘AI’) on established business models.

“As a result, the valuation multiples of comparable companies used to value HgT’s portfolio companies reduced significantly, particularly in the first quarter, before stabilising in the second. Encouragingly, a number of public comparables have since seen a material recovery in H2 to date, with the market now beginning to differentiate between those businesses best placed to benefit from AI, and those considered at greater risk of disruption.”