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British investment company HgCapital announced Monday that its private equity arm, Hg, has agreed to sell its remaining interest in business software provider TeamSystem to U.S. private equity firm Hellman & Friedman, raising approximately £24.3 million ($31 million) for the trust.

The U.S. firm already held a majority stake in TeamSystem Holding SpA, which provides accounting, payroll, and business management software for accountants and small and medium-sized enterprises in Italy, Spain, and Turkey, since 2016.

Freshfields Bruckhaus Deringer LLP is advising Hellman & Friedman LLC, while Linklaters LLP is acting as the legal adviser to Hg

HgCapital Raises £24.3M In Software Biz Exit : A Strategic Exit

The transaction marks an exit by Hg, which acquired TeamSystem in 2010 from investment firm Bain Capital. Hg sold its dominating stake in the Italian company to Hellman & Friedman in 2016 but retained a minority interest.

"Hg's investment in TeamSystem has benefited from a great partnership with the TeamSystem management team and H&F, who have together supported TeamSystem to become a leading business software solutions provider in Italy, Spain, and Turkey," HgCapital said in the Monday statement.

HgCapital’s Business Model

Hg acts as the manager for HgCapital, which is listed on the premium FTSE 250 index of the London Stock Exchange. HgCapital's business models involve giving private and institutional investors the opportunity to participate in all of Hg's investments. The sale raised £24.3 million for the trust, but Hg did not disclose the proceeds of the entire transaction or the names of other investors who benefited from this deal.

TeamSystem's software suite, used by professionals and enterprises, served nearly 2 million clients across Southern Europe as of August.

Recent Developments and Investments

San Francisco-based Hellman & Friedman, which became the majority shareholder of TeamSystem in 2016, recently sold minority interests in TeamSystem to the Abu Dhabi Investment Authority and Alphabet Inc., the parent company of Google.

CapitalG, Alphabet's independent growth fund, and the sovereign wealth fund of Abu Dhabi invested in TeamSystem in August. The investments came a few months after investment giant Silver Lake acquired a minority stake in the Italian company for €600 million ($650 million) in May 2023.

Hg on July 1 sold a majority stake in German cloud computing company F24 to private equity firm Altor, raising £18.4 million for the trust. Additionally, HgCapital agreed to invest £44.2 million in German insurance brokerage platform GGW Group in February, alongside other institutional clients of Hg.