HgT Deploys $62m in Co-Investments Into OneStream and Septeo

Why It Matters

The transactions underscore Hg’s confidence in core software assets and its strategy to boost capital efficiency, signaling robust demand for tech‑focused private‑equity investments despite market turbulence.

Key Takeaways

• HgT adds $9m co‑invest to OneStream, total £100m
• Partial €500m sell‑down of Septeo at 2025 valuation
• €45m converted to fee‑free co‑investment via Genesis 9
• Fee‑free exposure rises to 12% of projected NAV
• Institutional demand persists despite market volatility

Pulse Analysis

HgT’s latest capital moves illustrate a deepening commitment to high‑growth software companies, a sector that has consistently outperformed broader private‑equity benchmarks. By layering a $9 million co‑investment into OneStream—an enterprise performance management platform—Hg not only reinforces its existing £100 million position but also leverages the firm’s strong recurring‑revenue model. This reinforcement aligns with Hg’s broader Saturn 4 fund strategy, which recently completed an oversubscribed $1.5 billion equity syndication, indicating that limited partners remain eager to back scalable SaaS businesses.

The Septeo transaction adds another layer of strategic nuance. Hg agreed to a partial sell‑down exceeding €500 million, effectively monetising a portion of its stake while simultaneously converting €45 million of its net‑asset‑value exposure into a fee‑free co‑investment structure through the Genesis 9 fund. This maneuver boosts HgT’s fee‑free exposure from roughly 10% to 12% of its projected 31 December 2025 NAV, enhancing capital efficiency by recycling capital into direct, cost‑effective holdings. Such fee‑free arrangements are increasingly attractive to institutional investors seeking higher net returns without the drag of management fees.

From a market perspective, these actions send a clear signal: even in periods of heightened volatility, institutional appetite for vetted, high‑margin software assets remains strong. Hg’s ability to attract new co‑investors while maintaining sizable direct exposure suggests confidence in the underlying growth trajectories of OneStream and Septeo. For the broader private‑equity landscape, the moves may encourage peers to adopt similar fee‑free co‑investment models, fostering a more capital‑efficient ecosystem that aligns sponsor and investor interests more closely.

Deal Summary

Private equity firm HgT announced a $62m co-investment deployment, adding $9m to OneStream and converting €45m into a fee‑free co‑investment in Septeo, increasing its exposure to both software companies. The transactions were completed amid market volatility, bringing HgT’s total stake in OneStream to about £100m.