In the dynamic world of private equity, identifying the most active and influential investors in specific sectors provides valuable information for founders, company executives and M&A professionals. Nowhere is this more critical than in the rapidly evolving TMT (Technology, Media and Telecommunications) sector, the heart of digital transformation in Europe.

According to the report "Europe 250 – 2025 Edition" recently published by Gain.pro, one investor stands out as the undisputed leader in TMT: Hg. With an Enterprise Value (EV) managed of €23 billion in this sector alone, Hg tops the ranking of the 50 most active private equity investors in TMT across Europe.

In this article, we will look at what makes Hg the dominant player, how it compares to its competitors, what trends are shaping TMT operations in Europe, and what this means for mid-market companies and operations advisors.

Hg: Europe's private equity king in TMT

Hg not only operates in TMT but is also specialized in it. An impressive 71% of its European portfolio is dedicated to TMT assets, making it by far the most focused investor in the sector among the European private equity elite.
Its €23 billion in TMT EV is driven by a portfolio of software and technology companies, many of them high-growth and high-margin. This strategic sector focus enables Hg to offer both operational expertise and value creation support specifically tailored to digital businesses.

Relevant industry metrics

Hg is not only big: it is also fast-growing and profitable. According to Gain.pro, Hg's portfolio features:

• One of the highest compounded annual revenue growth rates in 5 years
• Above-average EBITDA margins
• High buy-and-build activity makes it one of the most acquisitive firms in Europe.
  This combination of growth, profitability, and platform consolidation explains why Hg holds such a prominent position in TMT mergers and acquisitions circles.

Private Equity in TMT in Europe

The TMT sector remains one of the most attractive sectors for private equity, with €308 billion in enterprise value under management across Europe, making it one of the top three sectors, along with services and consumer.

Key characteristics of the TMT sector

• High scalability: digital and software business models offer operational leverage and global potential
• Recurring revenues: SaaS and platform models generate predictable cash flows
• Fragmented landscape: ideal for buy-and-build strategies
• Technology-driven resilience: TMT companies are less exposed to macroeconomic cycles than traditional industries.

Given these characteristics, it is not surprising that American investors overweight TMTs in their European portfolios, and that the British and French are not far behind.

Comparison of Hg with other major TMT investors

Hg may be the leading TMT investor by value added, but it is not alone. The Europe 250 report also highlights other relevant investors active in this sector:

While KKR and EQT are diversified mega-funds, Hg's specialization in software gives it a strategic advantage. Other companies such as Astorg (37%) and Advent (31%) have a significant presence in TMT, but their portfolios span multiple sectors, diluting their operational specialization.

Regional TMT investment centers: where the deals get done

According to the Europe 250 report, the UK and Ireland remains the most internationalized region for private equity, with 42% of its EV held by North American investors. TMT companies based in London, Dublin and Manchester continue to attract cross-border capital.

Meanwhile, France, Benelux and the Nordics are more dominated by local investors. Stockholm, in particular, is a hotbed of TMT investment, driven by the strong Swedish ecosystem and EQT's strong local presence.

Other regional trends include:

• France: local investors such as Ardian and Astorg are predominant.
• DACH (Germany, Austria and Switzerland): global players such as Carlyle and EQT are most active here.
• CEE (Central and Eastern Europe): still relatively underpenetrated but growing, with investors such as MidEuropa and CVC gaining ground.
• Southern Europe: although the north still accounts for most of the capital, southern Europe, especially Spain, Portugal and Italy, is becoming a strategic region for TMT investment

Investment strategy: what differentiates Hg?

Hg's dominance in TMT is based on several distinctive strategic pillars:

Mastery of the Buy&Build model

Hg is one of the most acquisitive investors in Europe, with a high “additions per asset” metric. Its strategy is to acquire a platform software company and then accelerate growth through add-on acquisitions. There are several examples, such as Access Group, TeamSystem or Visma.

Case study: Visma

Visma, a Norwegian SaaS company, is one of Europe's most successful technology platforms. Backed by Hg since 2006 (and again in 2014 and 2019), Visma has grown through more than 300 acquisitions, evolving from a regional ERP player to a pan-European SaaS giant.

Baker Tilly's Tech M&A team has advised Visma on several of its buy and build transactions, such as the acquisition of Declarando in 2022 and Moloni in 2023.

Other notable examples of... Buy-and-Build:

• Access Group (UK): Access Group, a UK provider of business management software, has made numerous acquisitions to expand its product range, covering areas such as HR, finance and compliance.
• Sovos Compliance: specialized in tax and regulatory software with a global complementary activity.
• TeamSystem (Italy, former investment): an earlier example of Hg scaling a regional software champion through selective mergers and acquisitions.

Operating manuals

Hg offers deep operational support, including digital transformation, market expansion and talent sourcing. Its internal value creation teams specialize in software-specific KPIs.

Minority and majority flexibility

Unlike many funds that focus solely on control deals, Hg participates in both minority and majority investments, giving it the flexibility to support founders without crowding them out.

Pan-European scale

With a pan-European footprint, Hg can help its portfolio companies expand across borders, an increasingly vital feature in fragmented TMT sub-sectors such as legaltech, Edtech y SaaS vertical.

What does this mean for the founders?

Understanding the dominant players in TMT private equity is critical for all players involved in mergers and acquisitions for deal positioning and value optimization.

The key: partnering with a specialist

• In-depth industry knowledge: Hg's in-depth knowledge of the software and technology sectors can provide valuable insights and guidance, enabling it to operate not only as an investor, but also as a trader.
• Patience and scale: their long-term vision means you're not pressured by quick exits. They have supported Visma for nearly two decades.
• Minority-friendly: Hg is open to minority stakes, which is ideal if you want strategic capital without relinquishing control.
• Buy-and-build machine: if you aim to become a platform company, Hg will likely support your inorganic growth with full backing—from identifying mergers and acquisition targets to integration.

What lies ahead for TMT venture capital in Europe?

The TMT sector shows no signs of slowing down in 2025. Trading volume is expected to remain strong due to:

• The tailwinds of digital transformation in enterprise and consumer technology.
• Increasing number of spin-offs of large companies divesting non-core digital units
• Increased focus on AI and data infrastructure, attracting new capital.

However, valuations remain high, and competition from North American investors continues to intensify. This puts pressure on European companies to maintain sector depth and excellence in execution, areas in which Hg is currently a leader.

Conclusions on activity in the TMT sector

In a competitive TMT investment landscape, Hg has become the most active and dominant private equity investor in Europe in 2025. With €23 billion in EV managed in TMT, its “software-first” approach, and best-in-class execution, Hg is not just participating in the digital economy—it’s shaping it.

For anyone involved in the TMT M&A ecosystem, understanding Hg's strategy, business and portfolio is essential to navigating deals, finding the right investors and creating long-term value.

Baker Tilly’s Tech M&A team specializes in connecting growing tech and digital companies with strategic buyers and investors. Whether you're planning your next funding round, exploring mergers and acquisitions, or expanding into new markets, our team brings deep industry expertise combined with global transaction execution capabilities.