Hg raises $8bn for latest large-cap, eyes more than $15bn across two funds

The tech-focused investor is expected to hold the final close on Saturn 3 by next quarter and is seeking €5.5bn for its latest mid-cap vehicle.

Hg Capital, Europe’s eighth-biggest private equity firm according to the PEI 300, has raised the bulk of its latest large-cap fund and is eyeing a final close by the end of June, Private Equity International has learned.

The London-headquartered firm has collected at least $8 billion for its Hg Saturn 3 vehicle, according to a source familiar with the matter. The fund, which is understood to be already fully subscribed, is expected to hold its final close on $10 billion in the second quarter of this year, above its $8.5 billion target.

At $10 billion, the fund would be more than twice the size of its 2020-vintage predecessor. Hg Saturn 2 closed on $4.85 billion against a target of $3.5 billion, according to PEI data.

Around 80 percent of those that have committed to Saturn 3 are understood to be existing investors with Hg.

It is understood that Rede Partners is advising on the fundraise.

Hg, which specialises in tech investments and has a focus on software and service businesses, is also in market with its 10th Genesis mid-cap vehicle, which was expected to hold a first close in April, PEI reported in January. Hg Genesis 10 is seeking €5.5 billion, according to PEI data.

Hg is one of several Europe-headquartered firms on the fundraising trail this year. According to PEI’s full-year 2021 Fundraising Report, Europe-focused funds in market are targeting $98.8 billion between them. These include: IK Investment Partners, which is in market with its 10th flagship offering; EQT, which is seeking €20 billion for its 10th flagship; and PEI Media owner Bridgepoint, which is targeting €7 billion for its seventh Europe fund, according to PEI data.

Hg was chosen by readers as Firm of the Year in the UK for the PEI Awards 2021, revealed on Tuesday.

Spokespeople for Hg and Rede declined to comment.

– Adam Le contributed to this report.

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