HG deal defies market turmoil

Despite the turmoil in global capital markets, private-equity group HG Capital still managed to sell one of its businesses for about 200 million (£158.8 million).

HG, which led a 60 million buyout of accounting software business Addison three years ago before adding further acquisitions to the group, today sold it to German publisher Wolters Kluwer.

It is thought that the private-equity group invested 78 million in the original buyout and has made nearly four times its money with today's sale.

The deal comes as one of few currently getting done by private-equity firms. With banks unwilling to lend, it has been almost impossible to find buyers for businesses.

Analysts said it was notable that today's deal had been to a trade buyer, rather than another private-equity firm or other financial company.

HG Capital Trust, the stock market-quoted vehicle through which smaller investors can get exposure to HG's investments, will realise £18.6 million from the sale.