London is celebrating a rare boost to its capital markets following confirmation that €19 bn software powerhouse Visma plans to hold its IPO in the City. The decision not only breathes life into a stagnant European IPO scene, but also represents a significant victory for Hg, the London-headquartered private equity firm steering Visma and poised to exceed $100 bn in assets under management. According to the Financial Times, this milestone places Hg ahead of major U.S. competitors such as Advent and Warburg Pincus — second only in the U.K. to CVC.
Hg has uniquely thrived by specialising in software, capitalizing on an era of cheap capital and limited European competition. Founded in 1990 as Mercury Asset Management, it became independent in 2001 and pivoted decisively toward tech in 2007 under Nic Humphries. In his words to the Financial Times, choosing a generalist path would have relegated Hg to “10th or 11th place.”
From its early days as Visma’s “white-knight” saviour — stepping in to fend off a takeover by Sage — Hg has continually reinvested rather than exiting. This strategy involved rolling over stakes between its own funds, often in partnership with external backers like Singapore’s GIC. While some peers initially scoffed at the move, the model has since delivered industry-leading returns: between 2008 and 2023, Hg and its U.S. counterpart Thoma Bravo led the first-quartile league in internal rate of return, based on performance data analysed by The Fund Review for the FT.
Still, selling these tech majors remains a challenge. “The larger companies get, the harder they become to exit . . . The IPO window has to be open,” one investor noted. Indeed, European listings have stalled — only £160 mn raised in London’s tech floats in H1 2025, the lowest in three decades, while Frankfurt saw major deals like Stada and Brainlab shelve IPO plans.
Hg also accelerated distributions by borrowing against its own fund assets — a somewhat controversial move. Borrowing accounted for around 5% of total distributions over the past decade, but surged to roughly 50% in returns from its 2020 large-cap fund. Hg defends the approach as a tactical choice, with a promise that only a fifth of invested capital is “borrowed back” to investors.
With nearly £25 bn in new funds since 2020 and growing competition from Advent and EQT, Hg must prove its strategy scales. Funds placed five years ago have returned only half of invested capital so far, though exit timelines typically ramp in years four and five.
Visma’s planned IPO — expected in 2026 — marks the firm’s first true test on a public stage. Listing in London not only validates Hg’s longstanding commitment to the company as “Europe’s largest private equity‑backed software company,” but also challenges Hg to uphold its performance reputation without the protective cover of private status.
“This proves our ability to scale as industries transform over decades,” says Humphries. As London awaits a flagship software float after years of drought, Hg prepares to demonstrate whether it can remain the poster child of Europe’s tech investment renaissance.
