Brokers Note: HgCapital New £20m Investment
Liberum Capital has released a note on HgCapital (LON:HGT). This is following HGT’s announcement of a new £20 million investment in Nair & Co, a business that provides facilities and services to enable other businesses to expand internationally.
Following the deal HgCapital still has £122 million of cash which represents 26% of NAV (net asset value), which is a measure of the value of the trusts underlying investments.
HGT has long term commitments to its investments of £315.5 million.
HGT trades on a narrow discount to NAV of 2.7%, which is much narrower than the Private Equity sector average of 13.8%. Year to date it has returned 19%. Liberum considers there to be better value elsewhere in the sector and rates HGT a hold.