(Correcting that HgCapital Trust manager Hg also is London-based.)

HgCapital Trust PLC on Wednesday said manager Hg has agreed to a partial sale of Iris Software Group Ltd to Los Angeles-based private equity firm Leonard Green & Partners LP.

The London-based fund provides access to the private equity investments of London-based manager Hg. HGT said the terms of Hg’s transaction Iris were not disclosed, but the deal valued its own investment in Iris at around £99.8 million.

Iris provides software and services in accountancy, payroll, human resources and education.

HGT will receive a net distribution of approximately £42.1 million from Iris, having re-invested a portion of its proceeds in the business alongside other institutional clients of Hg investing through Hg Saturn.

As part of the transaction, Hg’s Saturn 1 fund will fully exit its remaining position in Iris. HGT’s exposure to Iris will be £57.7 million at closing representing approximately 2.5% of net asset value, it said.

Senior partner at Hg Nic Humphries says: ‘Iris and Hg have a long history, evolving together over the past 20 years. We’re delighted to now partner alongside LGP to accelerate Iris’s US ambitions.’

Shares in HgCapital Trust were up 2.3% at 437.00 pence each in London on Wednesday morning. It has a £2.00 billion market capitalisation.

Copyright 2023 Alliance News Ltd. All Rights Reserved.