HgCapital has sold electronic marketplace provider Epyx to US-based fuel payment processing company Fleetcor, generating a 2.7x return multiple, according to a statement. The exit represents a gross IRR of 27 percent, including capital returned from a number of dividends in 2012 and a recapitalisation earlier this year.
Epyx reduces business costs for vehicle fleet operators in the UK by providing an electronic marketplace connecting operators with more than 9,000 suppliers of critical services. HgCapital invested in the company in 2009 and has helped grow revenues and earnings before interest, tax, depreciation and amortisation at a compound annual growth rate of 14 percent and 18 percent, respectively.
The sale of Epyx marks HgCapital’s fourth exit from its Fund 6, which closed on £1.9 billion (€2.2 billion; $3 billion) in 2009. In June, the firm sold Amsterdam-based management and administration business ATC to Blackstone-backed Intertrust for €303 million.
Fund 6 has returned about 42 percent of its invested capital to limited partners, according to the statement. The fund has generated an average a 2.8x return original cost and a gross IRR of about 45 percent.
The investment in Epyx marked HgCapital’s second investment in the electronic business-to-business network sector. The firm’s most recent investment in the sector came last November when it acquired social housing repair- and maintenance-focused company Valueworks from its lower mid-market fund, Hg Capital Mercury TMT, which has a £400 million (€472 million; $638 million) target.
HgCapital’s latest fund closed earlier this year on its £2 billion hard-cap, surpassing its £1.75 billion target. The firm spun out of Mercury Private Equity, the private equity arm of UK-based Mercury Asset Management which was later acquired by Merrill Lunch, in 2000, according to its website.
HgCapital primarily invests in the healthcare, industrials, services, renewable energy and technology, media and telecom sectors across Western and parts of Central Eastern Europe. The firm manages more than £5.6 billion of assets through from its offices in the UK and Germany.