HgCapital closes TMT fund after pulling in £380m

HgCapital has closed its specialist TMT fund after it attracted £380 million in assets.

The strong uptake makes HgCapital's Mercury fund the largest in its specialist market, and reflects the team's breadth of experience in investing in the £20 million to £80 million enterprise space.

Stephen Bough, HgCapital's chief finance officer and who oversees HgCapital Trust, which last October made a £60 million pledge to the fund, told Wealth Manager that because lending is scarce, vehicles like Mercury look even more attractive.

'It's a new fund in a space we are very familiar with; it's seen as compelling we taking that expertise into TMT,' he added.

Bough spoke shortly after HgCapital Trust unveiled its annual financial report to investors. 

It posted a 15.3% net asset value (NAV) per share total return for the 12 months ended 31 December, and Bough (pictured) said £444 million HgCapital Trust had enjoyed a 'buoyant' realisations environment, generating £80 million in cash with full exits achieving an aggregate 68% uplift to 2011's book value.

Over five years, shares in the trust have gained 51.65% and its ordinary share NAV has risen 43.18%.  This compares with a 26% fall in the LPX United Kingdom Index.