HgCapital says AI lifts portfolio margins 3%-5% a year, boosts software productivity

• HgCapital managers told an Aug. 10 interview AI is boosting specialist software, citing productivity gains in engineering and customer support.
• Hg’s AI effort started over a decade ago, now including 20+ internal data scientists working across the portfolio.
• Hg Catalyst, with 100+ AI engineers, embeds in portfolio companies for six to nine months to build AI products before handover.
• Portfolio companies have generated $30-50 million in annual recurring revenue from AI products, growing 50-100% year-on-year.
• Management pointed to 3-5 percentage points of annual margin expansion across the portfolio, citing AI-driven efficiency without headcount growth.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. HgCapital LLP published the original content used to generate this news brief on August 10, 2026, and is solely responsible for the information contained therein.