UK private equity group HgCapital has sold Dutch fiduciary services firm ATC to Intertrust for an enterprise value of EUR303 million. This realisation represents an investment multiple of approximately 2.2x original cost.
The sale generated a gross IRR of 37% over the two-year investment period. The transaction is expected to close in September 2013 following regulatory approval.
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HgCapital first invested in ATC in March 2011 as the first external investor in the business. Since invested in ATC, HgCapital has experienced accelerated organic growth with an 11% increase in turnover and an EBITDA increase of 14% per annum over the past two years.
ATC is the third divestment for the HgCapital 6 fund, which closed on GBP1.75 billion in 2009. Exits from this fund have delivered an overall return of 2.8x and a gross IRR in excess of 50%.
Following the completion of the ATC sale, HgCapital 6 will have returned in excess of 40% of invested capital.
HgCapital head of the services team, Matthew Rourke, said: "The success of our investment in ATC comes in large part from years of adhering to our sector focused investment strategy, which enables us to identify strong companies with outstanding growth potential and then support management to achieve those objectives."
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