Hg brings Mercury Fund 1 returns to 3.2x selling Allocate Software to Vista Equity Partners


Hg has continued its busy start to the year by selling Allocate Software to Vista Equity Partners after less than four years in its portfolio.

Financial details were not disclosed, although Hg said the fifth realisation from its Mercury Fund 1 had left it on a 3.2x return and 46 per cent gross IRR.

That follows the sales sales of Zitcom to Intelligent last summer for a 3.3x and 141 per cent gross IRR, and exit of Relay Software to Applied Systems in August 2016 for 2.1x cost and 39 per cent gross IRR.

Allocate aims to support the operational and administrative needs of healthcare professionals, enabling the delivery of safe and effective care at optimal cost, by helping organisations to have the right people in the right place at the right time.

The UK-headquartered company has more than 800 clients and more than a million staff rostered daily.

Hg initially invested in Allocate at the end of 2014, completing a public-to-private transaction from the London Stock Exchange.

David Issott, partner at Hg, said, “We have been delighted to partner with all of the team at Allocate over the last three years.

“Together we have built a leader in its sector and, working with an impressive management team, we have improved the operational performance of Allocate across every metric.”

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