The trust, which gives investors access to a portfolio of unquoted European technology companies managed by Hg, said NAV per share stood at 539.1p at 30 September 2026, with net assets of £2.4bn.

NAV total return was 2.0% for the third quarter, following 0.5% in the second quarter and a 5.4% fall in the first, leaving it down 3.1% year to date. Continued strong trading across the portfolio added 5% to portfolio value in the quarter and 15% year to date.

While NAV recovered, the share price struggled to keep at pace. The trust’s share price total return was 2.5% in the quarter but is down 23.0% year to date, leaving a market capitalisation of £1.7bn. The shares traded at a discount to NAV of around 28% at the end of September.

Movements in the multiples of comparable companies reduced value by 2% in the quarter, a much smaller hit than in the first half, when public software stocks sold off sharply. Year to date, falling multiples have reduced portfolio value by 13%.

The weighted average EV/EBITDA multiple across the portfolio fell to 22.6x at 30 September, from 22.9x at 30 June and 25.2x at the end of 2025. An increase in net debt and currency movements marginally reduced portfolio value in the quarter, and cut it by 4% year to date.

Over the last twelve months, portfolio sales grew 15% and EBITDA grew 19%, or 11% and 17% on an organic basis. EBITDA margins were 35%. The ratio of net debt to EBITDA fell to 6.7x from 7.4x at the end of last year.

HgT said its objective is to deliver long-term returns in excess of the FTSE All-Share Index, and pointed to a ten-year share price total return of 223%, which it said outperformed the index by 104% over that period.

HgT invested £28m during the quarter, including new investments in Street and Nourish and a further investment in Teamworks. After the period end, it committed about £33m to ES1, a Greek provider of ERP and business software, and £6m to 3E, a provider of renewable energy asset performance management software and technical advisory services. Both are expected to complete over the coming months.

Realisations in the quarter totalled £13m, largely from the full exit of Quantios, which was signed at a 31% uplift to carrying value. After the period, the trust agreed the full exit of Gen II for about £71m, a 34% uplift to carrying value. The trust said the uplift is reflected in the 30 September NAV, with completion expected in 2027.

During the period, HgT agreed to extend and upsize its revolving credit facility to £450m from £375m, pushing expiry back from March 2027 to September 2029. The margin was cut to 3.00% over SONIA from 3.40%, and the commitment fee to 1.15% from 1.30%.

Available liquid resources were £286m, including the facility, of which £168m was drawn at the quarter end. The trust has outstanding commitments to Hg funds of £2.0bn, of which £1.8bn is expected to be called over the next four to five years.

Hg also announced it intends to increase its aggregate strategic ownership of HgT from about 6% to more than 15% over the medium term, with on-market purchases ongoing.

Jim Strang, chairman of HgT, said: “Trading performance across the portfolio continues to be strong with +19% LTM EBITDA growth, and the portfolio delivered a second consecutive quarter of NAV growth despite headwinds from declining ratings of comparable companies.

“Publicly listed software share prices recovered significantly in the quarter, with the IGV software index recovering most of its year-to-date losses, but the recovery has been far more selective than the sell-off that preceded it. While the volatility of listed peers continues to weigh on HgT valuations, it is encouraging that investors are now identifying the companies most likely to benefit from AI transformation, rather than selling the sector indiscriminately.

“The board continues to believe that the HgT portfolio is well positioned to benefit from AI-led change. The underlying businesses typically share three characteristics: they are deeply embedded in their customers’ workflows, they hold proprietary domain data built up over many years, and they operate in regulated or high-trust environments. 

“The discount to NAV has been volatile, narrowing to c.16% in August and widening to c.27% at 30 October. This remains wider than historic levels and, in the view of both the board and the manager, does not reflect the value or future prospects of the underlying portfolio. Alongside the board’s ongoing review of share buybacks, the manager has continued to buy shares in the market, increasing its ownership of HgT to over 6% as it works towards its stated intention of holding more than 15% over the medium term, a clear demonstration of its alignment with shareholders.”