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Hg plots €10bn war-chest for new mid-market vehicles this year - InforCapital

UK tech buy-out specialist Hg is back in market, aiming for €10bn across Genesis 11 and Mercury 5 while marketing $12bn Saturn 4.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Technology Software & Gaming.
  • Geography: United Kingdom.

Analysis

London-based private-equity software investor Hg has returned to the market with its next mid-market vehicles, Genesis 11 and Mercury 5, targeting €7.5 billion and €2.5 billion respectively – a combined €10 billion war-chest focused on European and transatlantic B2B software deals.

Part of a wider $24 billion effort. The firm is simultaneously raising Saturn 4, a large-cap strategy aiming for $12 billion, bringing the full three-fund programme to roughly $24 billion – one of 2025’s largest private-equity capital drives.

Bigger funds, bigger cheques. Genesis 11 would eclipse the €6.75 billion collected for Genesis 10 in 2023, while Mercury 5 edges past Mercury 4’s €2.4 billion close. Saturn 4 likewise tops its $11 billion 2022 predecessor.

Strategy breakdown

  • Mercury 5 – lower-mid market, EV < €1 bn, equity €100-300 m.
  • Genesis 11 – mid-market, EV up to €2 bn, equity €350-750 m.
  • Saturn 4 – large-cap, EV > $1.5 bn, equity > $700 m.

Performance promise. Hg is targeting 20% net IRR and 2.5× net MOIC by doubling down on mission-critical software clusters and early AI adoption.

Investor appetite. Pennsylvania’s PSERS backed the trio on 13 June 2025 with commitments of $100 m, €75 m and €50 m, signalling solid early-stage demand.