HgCapital announced on Friday that its manager Hg was making an additional investment into legal technology company Litera.
The FTSE 250 company said the terms of the transaction were not being disclosed.
It said the transaction would result in HgCapital investing £28.2m in Litera, alongside other institutional clients of Hg.
The transaction represented an uplift on HgCapital’s current investment in Litera of £48m, or 10.8p per share over the carrying value of £70.1m in the net asset value as at 31 August.
Based on the 31 August reported values, the pro-forma net asset of the trust was expected to be £1.73bn, or 388.5p per share.
HgCapital said its liquid resources available for future deployment, including all announced transactions, and equity raised via tap issues, were estimated to be £251m, or 14% of the 31 August proforma net asset value.
The board said the investment would reduce its outstanding commitments to invest in Hg transactions to approximately £476m, or 28% of the 31 August proforma net asset value.
“Litera has grown significantly since we first backed the business in 2019, but we are just getting started,” said Hg partner Jean-Baptiste Brian and director Hector Guinness in a joint statement.
“There is still enormous opportunity to support further productivity improvement in law firms with modern software.
“Litera’s position as the ‘vendor of choice’ for law firm CIOs, their “highly talented” team and well-invested products means that the business is an ideal platform to continue to support this theme for many years to come.”
HgCapital said it would announce its third quarter results for 2021 on 15 November.
At 1016 GMT, shares in HgCapital Trust were up 1.75% at 413.1p.
