Hg Capital Trust cut the value of most of its largest investments during the first quarter, pointing to a broad pullback in software valuations tied to AI-related concerns.
The firm saw a 5.4% drop in net asset value for the quarter. It also saw a 9% decrease in portfolio valuations. Fourteen of Hg’s 20 largest positions were marked down over the period, the Financial Times reported.
“While all technology assets will be impacted by the adoption of AI, the Hg portfolio companies are well placed to see their specific value propositions enhanced by AI integration rather than to be replaced altogether. Indeed, Hg continues to lead the thinking on how such effective augmentations and collaborations can be made,” Strang continued.
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