We are pleased to report that the Hg Fusion Private Capital Fund (‘Fusion’) had a strong finish to 2024, delivering Q4 Net Asset Value ("NAV") growth of +8.9%, which ultimately contributed to full-year 2024 NAV growth of +19.6%. (1)

This return delivers significant outperformance of Fusion’s net annual return target of 15-17% and, we believe, makes Fusion one of the best performing evergreen funds in 2024.

This NAV growth means that one-year in, Fusion’s NAV has grown to c.€780 million, pro forma adjusted for net subscriptions received in January 2025. (1)

Performance Highlights

Strong underlying performance: Fusion’s Q4 results were predominantly driven by the strong performance of its underlying Hg portfolio companies, which delivered last twelve-month (LTM) growth of c.22% in Revenue and c.23% in EBITDA, with an average c.32% LTM EBITDA margin (2)

Currency tailwinds: The US Dollar appreciated c.8% against the Euro and c.7% against GBP over Q4. With c.50% of the Fusion portfolio in US Dollar-denominated investments, Fusion’s unhedged Euro and GBP share classes benefitted from these currency tailwinds (reversing the negative FX impact seen in Q3).

Fusion’s pipeline remained very active throughout Q4, with new primary investments made in Hg Mercury 4 (lower mid-market strategy) and Hg Titan 2 (junior debt strategy), and Fusion acquiring a number of secondaries in former Saturn (upper-mid market strategy) and Genesis (mid-market strategy) fund vintages. These secondaries further enhance Fusion’s ‘Hg back catalogue’ diversification and liquidity profile, with the 2018 and 2020 vintages in their “harvesting” period, and the 2022 vintage still in its investment phase.

Fusion also made a new co-investment inIFS, a leading global provider of ERP, asset management, and field service management software for asset-intensive verticals, alongside Hg Saturn 3 and other Hg LP-co-investors. Fusion’s co-investments (which, as a reminder, remain performance fee-free) now comprise c.37% of the Fund’s portfolio and provide investors with direct exposure to some of Hg's highest conviction and longest-standing investments.

Having made a number of new strategic secondary acquisitions following the receipt of Q4 subscriptions, Fusion’s post-period portfolio now encompasses all c.55 active Hg portfolio companies across eleven active Hg funds and co-investments. As a result, Fusion’s investors have diversified, institutional-like exposure to Hg’s full platform of mission-critical B2B software and services businesses in Europe and North America.

Finally, we are proud that in 2024 we were ranked as #1 most active private equity tech investor globally(3) and the #1 best performing European large-cap private equity firm(4), reinforcing Hg’s position as a leading global Software and Services investor of choice.

For greater detail on Fusion’s performance and underlying portfolio, please refer to the Q4 Quarterly Report on the platform. As always, we thank you for your ongoing support and trust in us. We are happy to discuss any questions you may have on Fusion, and Hg more widely.

We look forward to updating you on Fusion throughout 2025 and remain excited for the rest of the year ahead.

1 Performance is in reference to the O-EUR, K-EUR and F0-EUR share classes – please refer to the Net Performance table in the Q4 Report for a full breakdown by share class.

2 EBITDA figures exclude Hg portfolio companies which are valued on a revenue basis.

3 https://www.agcpartners.com/insights/agcs-year-end-2024-tech-capital-markets-update

4 https://www.hec.edu/en/news-room/us-basedprivate-equity-firms-dominate-top-10-spots-latest-large-buyout-performance-ranking

Interests in Fusion have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or the applicable securities laws of any United States state or any non-United States jurisdiction. The interest in Fusion may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any “U.S. Person” except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and any applicable state laws. As such, any “U.S. Person” may not receive and should not act or rely on this Press Release or any other materials related to Fusion.

The information contained in this Press Release is being made available solely for information purposes. Any potential investors are urged to carefully read the applicable Prospectus and other materials in their entirety before making an investment decision.

Any potential investors should conduct their own investigations and analysis of Hg, Fusion and the information set forth in the applicable Prospectus and other materials. Nothing in this Press Release or the other applicable materials should be construed as a recommendation to invest in any securities or as legal, accounting or tax advice. Before making any decision to invest in Fusion, potential investors should carefully review information relating to Hg and Fusion and consult with their own legal, accounting, tax and other advisors when considering the merits of any investment.