In brief : HgCapital Trust announced the sale of its holding in Gen II Fund Services for £71m, 34% above its latest valuation. A real-world case to understand how unlisted companies are valued, and why a sale is the real test of those valuations.

On 6 October 2026, HgCapital Trust (HGT), a London-listed trust, announced the sale of its holding in Gen II Fund Services, a US fund administration company. The buyer is KKR, which is acquiring the business for $5.1bn from Hg, General Atlantic and other minority shareholders.

For HGT, the transaction is worth £71m. At 31 August, the holding was carried in its accounts at £53m. The difference, £18m, represents a 34% uplift on that valuation. Per share, it adds 4 pence to net asset value (NAV), taking it to 529.5 pence on a pro forma basis.

An unlisted company has no share price. In a trust’s accounts, it is carried at fair value, estimated using methods set out in the industry’s professional guidelines (IPEV): multiples of comparable companies, recent transactions, expected cash flows. That value remains an estimate.

A sale is the moment when the estimate meets a real price. The gap between the price achieved and the latest valuation is then measured: this is known as the uplift. A positive gap suggests the valuation was conservative; a negative one, that it was optimistic.

Investors watch this figure closely because it allows them to judge, after the event, the credibility of the published NAV. By way of comparison, NB Private Equity Partners said in its half-year results published on 23 September 2026 that its exits had been achieved on average 6% above the valuation recorded three quarters before they were announced.

A sale is not everything. At the closing price of 373 pence, HGT shares traded around 29% below pro forma NAV: the share price and the value of the assets remain two different things. A single transaction says nothing about the trust’s future performance.

Fair value :
The estimated value of an unlisted holding, using established methods. It is generally reviewed every quarter.

Pro forma NAV :
Net asset value restated to include an announced transaction, ahead of the next official publication.

Uplift :
The gap between the sale price and the latest valuation. It helps judge how conservative valuations are.

Discount :
The gap between the share price and NAV. A good exit does not make it disappear automatically.

Sources : QuotedData, 6 October 2026 – NB Private Equity Partners, half-year results, 23 September 2026

AVERTISSEMENT
This article is for educational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Past performance is not a reliable indicator of future results.