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Hg Said to Top $11 Billion for Its Largest Ever Buyout Funds

Sarah Syed

(Bloomberg) -- Hg will soon stop accepting new money for three of its buyout funds after raising $11 billion for its largest ever pool of capital, according to people familiar with the matter.

The U.K.-based private equity firm, which focuses on software and service businesses, will divide as much as $10 billion equally between its second large-cap fund, known as Saturn, and its ninth mid-cap fund, known as Genesis, said the people, who asked not to be identified discussing private information. An additional $1.5 billion has been raised for the firm’s third small-cap fund called Mercury, the people said.

Hg’s first investment from Saturn will go to increasing its stake in Norwegian cloud software developer Visma Group, the people said. Last April, private equity firm Cinven Group sold its stake in Visma to Hg and co-investors, valuing the business at more than 6.5 billion euros ($7 billion) at the time. Hg has been invested in Visma since 2006 when it led the company’s delisting from the Oslo Stock Exchange.

The firm is working with advisers from Rede Partners on the fundraisings, the people said.

Read more: European Buyout Firm Hg Is Said to Seek $4 Billion for Next Fund

Representatives for Hg declined to comment.

Market tumult resulting from Covid-19 has put some serious obstacles in the way of private equity firms. Apollo Global Management Inc. suggested it may have to pay back profits, known as clawbacks, from several of its funds as holdings have been hit hard by the economic fallout. But Apollo and its rivals are sitting on roughly $1.5 trillion of capital to invest and they’re optimistic they will ultimately profit from the current crisis.

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