HgCapital Trust: CMD takeaways: Alignment and AI investment

Research evidence excerpt

HgCapital Trust: CMD takeaways: Alignment and AI investment

Equity Research

European Investment Companies

5 June 2026

HgCapital Trust

CMD takeaways: Alignment and AI

investment

Hg’s CMD underlined confidence in its strategy and the HGT.L/HGT LN EQUAL WEIGHT

NEUTRALgrowing scale of AI investment across the manager and EuropeanCompaniesInvestment

portfolio. The size of the intended investment in HGT Price Target GBp 570

materially increases alignment. The update reinforced Hg’s Price (03-Jun-26) GBp 386 Potential Upside/Downside +47.7%

Source: Bloomberg, Barclays Researchposition as one of the more advanced AI adopters within PE

software.

Conor Finn, CFA

Yesterday's CMD provided a strong demonstration of confidence in the underlying +44 (0)20 7116 6066

investment strategy, and shed further light on the scale of investment in AI capabilities conor.finn@barclays.com

both at the manager and portfolio company level. Commentary on underlying trading Barclays, UK

conditions for 2026 is strong although the CMD did not materially improve long-term Rishikesh Panathuparambil Suresh

growth visibility. The market is currently reflecting a lower terminal value to Hg's +91 (0)22 6175 4071

portfolio. In this context, the CMD clearly articulated Hg's position as one of the more rishikesh.suresh@barclays.com

advanced AI adopters within PE software. We believe yesterday's share price performance Barclays, UK

(+5.4% vs +0% for S&P Software & Services Index) was influenced to a large extent by the

investment commitment from the manager. Investor concerns on terminal values remain

the key overhang for the shares and it may take a sustained period of strong underlying

trading and evidence of AI monetisation to drive better relative performance for HGT.