Hg, the Manager of HgCapital Trust plc ("HGT"), today announces an investment in JTL-Software-GmbH (JTL), a leading ERP software provider specialising in e-commerce enablement solutions for small and medium-sized businesses (SMB) across Germany.

The terms of the transaction are not disclosed.

HGT will invest approximately £8.1 million in JTL, with other institutional clients of Hg investing alongside HGT through the Hg Mercury 4 Fund.

HGT, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.

Note that these figures only relate to HGT's share of Hg's overall investment in JTL.

HGT's liquid resources available for future deployment (including all announced transactions, the undrawn bank facility and the interim dividend payable in October 2023) are estimated to be £664 million (31% of the pro-forma 31 August 2023 NAV of £2.2 billion).

The investment will reduce HGT's outstanding commitments to invest in Hg transactions to approximately £1.1 billion (49% of the pro-forma 31 August 2023 NAV).

JTL secures investment from Hg
to fund further growth as a European champion in e-commerce software

Hückelhoven, Germany - 12 October 2023: JTL-Software-GmbH (JTL), a leading ERP software provider specialising in e-commerce enablement solutions for small and medium-sized businesses (SMB) across Germany, today announces that it has secured additional investment from Hg, a leading investor in European and transatlantic software and services businesses, to support JTL in the next phase of its growth journey.

Based in Hückelhoven, Germany, and co-founded in 2008 by two brothers, JTL provides ERP software solutions enabling businesses to sell products online and offline. This product suite is the backbone of a merchant's operations and automates their mission-critical daily workflows, ranging from managing distribution channels, order entry and warehouse management, all the way to fulfillment. Today, JTL serves around 50,000 German SMBs with a vibrant and unique user community and achieves strong customer advocacy and retention rates. 

Ralph Schweiker, CEO of JTL, said: "This investment from Hg enables us to accelerate our growth without losing our focus to create even better software solutions for our customers, which are mission critical to the success of their business. Hg's track record in growing and supporting ERP software businesses makes them the perfect partner for us and we're incredibly excited about the opportunities that their expertise and support are going to unlock for the business."

The JTL founders said: "This is a fantastic opportunity for JTL. We're so proud of everyone at the firm who have all contributed to creating a valued software solution for thousands of businesses across Germany. We are delighted to partner with Hg as leading software investor and look forward to the opportunities that this entails."
 
Hg will look to support JTL to continue its SaaS product development and facilitate expansion opportunities regionally and into adjacent sectors. ERP is one of Hg's most established areas of focus, having invested around $8 billion globally over the last 19 years to grow several businesses in the ERP & Payroll sector.

Benedikt Joeris, Partner at Hg, said: "ERP software is an area we know very well and we have been focused on this sector for almost two decades. This helps us to spot leading high-quality businesses that have further potential. This is precisely what JTL represents - a great business, with a very high-quality software product and new opportunities for further expansion. We really look forward to working with talented team across JTL."

For further details:

Hg

Tom Eckersley                                                                                     +44 (0)208 148 5401

HgCapital Trust

Laura Dixon                                                                                         +44 (0)20 8396 0930

Brunswick

Azadeh Varzi                                                                                       +44 (0)207 404 5959

Hg@brunswickgroup.com

About HgCapital Trust plc

HgCapital Trust plc, whose shares are listed on the London Stock Exchange (ticker: HGT.L), gives investors exposure through a liquid vehicle to a portfolio of high-growth private companies in the software and services sector. The selection of new investments and creation of value in these businesses are managed by Hg, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors. For further details, please see www.hgcapitaltrust.com.

The contents of the Hg, HgCapital Trust and JTL websites are not incorporated into, and do not form part of, this announcement.