HgCapital Trust makes £17m on JLA share sale and refinancing

Mikkel Stern-Peltz
23 October 2015

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HgCapital Trust, an investor in the HgCapital funds, has realised ТЃ17.3m from the sale of a minority stake and refinancing of British asset maintenance business JLA by the GP, bringing the return on investment to 3.5x money to date.

The GP exited a minority stake to a group of institutional investors, bringing HgCapital's equity stake in JLA down to 62%.

Five years after JLA was acquired by HgCapital, the investment will have returned just shy of £22m to the GP's HgCapital Trust, through its holding in the HgCapital 6 vehicle. JLA underwent a refinancing in October 2014, which saw the LP receive proceeds of £4.5m.

To date, HgCapital 6 will have returned around 63% of the capital committed by the Trust at 2.5x money, once the deal has been completed. The deal is expected to increase carry for the directors of the HgCapital Trust from £12.7m to £21.8m.

Previous funding
HgCapital acquired a stake in JLA in March 2010 through an MBO financed by its 2008-vintage £1.75bn HgCapital 6 fund.

Company
Headquartered in Ripponden and founded in 1973, JLA designs, installs, maintains and repairs laundry equipment used by more than 18,000 customers, who either buy the equipment outright or rent it from JLA.

Advisers
Vendor – Robert W Baird (Corporate finance).