Hg Fusion: Delivering on Our Open-Ended Private Equity Strategy

Since launching Hg Fusion in December 2023, we've been focused on executing our vision for differentiated open-ended private equity investing. With over a year of operational experience, we wanted to share an update on how this strategy is performing and what sets it apart in the evolving private equity landscape.

The Evolution of Private Equity Access

The private equity market continues to mature, with investors increasingly seeking more flexible access to this asset class. While traditional closed-end private equity funds remain highly effective, open-ended structures are gaining traction for their ability to provide greater liquidity and more flexible capital deployment timing. Hg Fusion was designed to bridge this gap, bringing our proven software and services investment expertise to a more accessible format.

How Hg Wealth Differentiates Itself

1 Partner-Owned Independence

• Hg operates with complete partner ownership and no third-party equity stakeholders. This structure ensures our investment decisions remain focused on thoughtful strategic growth rather than external pressures¹. The alignment allows us to maintain the disciplined, long-term approach that has characterized our investment philosophy across all our strategies, enabling a clear focus on fund performance rather than AUM growth.

2 Foundation Built on Proven Performance

• Our underlying closed-end fund strategies continue to demonstrate strong results, with re-up rates of approximately 150% and consistent top-quartile performance². This track record provides the foundation for our open-ended approach, giving investors access to investment strategies that have historically been oversubscribed and in high demand.

3 Strategic Investor Base and Network Effects

• Hg Fusion was seeded by our close network of family offices, software founders, and entrepreneurs who have deep familiarity with Hg and our approach. This creates valuable network effects that benefit our portfolio companies through access to industry expertise, potential partnerships, and strategic guidance that can accelerate growth trajectories.

4 Disciplined Capital Management

• Rather than pursuing rapid asset gathering, we maintain a disciplined approach to capital deployment. Fusion's subscriptions are strategically capped each quarter to ensure we can deploy capital effectively into quality opportunities. This approach prioritizes investor returns over asset growth and maintains our focus on selective, high-conviction investing.

5 Sector Expertise in Action

• As one of the first sector-specialist private equity evergreen funds focused on software and technology services, Hg Fusion leverages our deep domain expertise. After more than a year of operations, the fund has demonstrated steady NAV growth, sustained investor demand, and minimal redemptions—indicators of both investment performance and investor satisfaction with the strategy.

Performance Update and Market Position

Since inception, Hg Fusion has delivered on its core objectives. The fund has shown consistent NAV growth while maintaining the flexibility that attracted investors to the open-ended structure. Strong demand continues from both existing and new investors, with redemption activity remaining minimal, suggesting investors are satisfied with both performance and the overall experience.

The fund's performance reflects our ability to successfully adapt our investment approach to the open-ended format while maintaining the quality and discipline that has defined our closed-end strategies.

Continuing to Execute Our Vision

As we move forward, our focus remains on consistent execution of our investment strategy while continuing to enhance the investor experience. The positive early results validate our approach and give us confidence in the long-term potential of bringing institutional-quality private equity investing to a broader range of investors through this flexible structure.

For our wealth investor base, Hg Fusion continues to represent an attractive way to access our proven private equity expertise within a structure designed for greater flexibility and transparency. As we build on this foundation, we remain committed to delivering strong risk-adjusted returns while maintaining the partnership approach that has been central to our success.

Notes: For illustrative purposes only. Past performance is not indicative of future performance. There is no assurance that the trends described or depicted above will continue.

¹ Re-up rate reflects the average investor commitment in the prior Hg vintages (2020/21), as a percentage of their commitments in the prior Hg vintages (2020/21).

² Based on net DPI figures for Hg as of 31 March 2025, adjusted for past period events, and benchmarked against Preqin European PE (excl. Secondaries) benchmarks as at Q3 2024.