invests mainly in unquoted companies, targeting a portfolio of around 30 growth holdings beyond the venture capital stage, and creating value through strategic and operational change.

Apart from outperforming the FTSE All-Share, the company has no explicit target return. However, at the level of individual investments, it aims to achieve a gross internal rate of return of 23-25%. The focus is on companies that offer software and services across Europe, with enterprise values ranging from £50m to more than £5bn.

HGT displays the characteristics of a tech conglomerate and is not a private equity fund of funds. According to the company, if HGT was classified as a tech conglomerate, it would be the second-largest and fastest-growing technology business in Europe, with existing tech investments valued at around £33bn and providing superior top-line growth.

HGT’s management incentive system is seemingly effective, as each team is individually incentivised to align its interest with the portfolio company through a share in business performance.

In addition, unlike a traditional conglomerate, HGT will realise each investment, constantly refreshing its group with younger companies entering their high- growth phase.

The investment strategy assumes the use of co-investments, which allow the company to manage its balance sheet more effectively and reduce the total fee load. According to the recently agreed framework, HGT aims to allocate 10-15% of the balance sheet to co-investments, versus 6.2% at the end of 2020.