Episode summary
Martina Sanow, Partner, Hg, Head of Hg Wealth - How Private Markets Are Changing Everything!
Alt Goes Mainstream
· · Hosts: Michael Sidgmore · Guests: Martina Sanow
Summary
Hg has spent more than two decades sharpening a specialist private equity model around mission-critical enterprise software, and Martina Sanow argued that this specialization is exactly what makes the firm attractive in wealth. She said Hg has grown from about $2 billion in AUM when she joined in 2009 to $85 billion today, while staying privately owned and keeping an entrepreneurial culture focused on learning, cognitive diversity, and consistent execution.
A central theme was why Hg believes B2B software can produce strong DPI and durable returns. Sanow said Hg looks for businesses with recurring revenue, fragmented customer bases, strong IP, and products that are hard to remove from a customer’s operating workflow, citing payroll, tax, accounting, and ERP software as examples. She pointed to Visma and P&I as proof that these companies can compound through downturns and still generate cash back for investors.
The discussion also focused on Hg Wealth and Fusion, the firm’s evergreen fund for wealthy investors. Sanow said the product was built to solve client demand for simpler access to Hg’s platform, while still mirroring institutional exposure across Mercury, Genesis, and Saturn. She said the team has capped quarterly subscriptions to match deal flow, and that the biggest challenge in evergreen structures is managing liquidity without drifting away from the firm’s return targets.
Key takeaways
- Martina Sanow said Hg’s edge comes from specializing in mission-critical enterprise software rather than trying to be a diversified generalist.
- Sanow said Hg has delivered over three times cost and over 30% gross IRR historically, helping drive strong DPI and cash back.
- Hg Wealth’s Fusion evergreen fund was designed to give wealthy clients full platform access with one commitment and meaningful co-invest exposure.
- Sanow said the firm caps quarterly subscriptions in Fusion because demand currently exceeds supply, making liquidity management central.
- She argued that Europe’s fragmentation makes local sourcing harder, but also creates an advantage for a specialist with 200 investment professionals across the region.
Notable quotes
“we started specializing very early when when everyone else said oh you have to be you know in four or five different sector because you needed diversification”
“we love the underlying business models and that kind of sort of cons um consistency around returns that that those investments are delivering”
“we are very very specific on what we buy I mentioned some of the criteria before but you know really a company needs to provide a mission critical software service”
“for every quarter had to cap subscriptions in order to really match subscriptions coming in with deal flow uh for that quarter”
“we are not driven by AUM. I've never had sort of a AUM target on my head when it comes to the B strategy”
How the episode opens
This episode of the Alco Mainstream podcast is brought to you by Ultimus, a leading full-ervice fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. Ultimus is a leading full-ervice fund administrator for asset managers in both private and public markets, offering a wide range of capabilities across registered funds, private funds, and public plans, as well as outsourced middle office services.
Delivering operational excellence, Ultimus helps firms manage the everchanging regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products. Trusted by institutions, investment consultants, registered investment adviserss, state governments, and fund managers, Ultimus provides solutions for nearly every investment structure in the marketplace.
Visit www.ultimusf ultimous funsolutions.com to learn more about Ultimus' technology-enhanced services and solutions or contact Ultimus executive vice president of business development Gary Harris on email at g har har har har har har har har har har har har har har har har har har har har harris at ultimus funfundsolutions.com we thank Ultimus for their support of alts going mainstreambody's going to eat mainream allies We see see you on mainream. We're going mainream from Wall Street to Melrose Avenue. We're going mainream venture capitalists to athletes to creators to the person who's collecting trading cards.
We're going to collision of culture and finance. Welcome back to the Elkco's mainstream podcast. Today's episode is with someone who has successfully built a wealth solutions business tailored to her firm's unique strengths, expertise, and investment track record.
Martina San is a partner and head of HG Wealth, where she is focused on building the firm's wealth solutions offering built out of the 85 billion AUM firm that invests in enterprise software.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private markets wealth solutions
- mission-critical enterprise software
- evergreen funds
- dealflow and investor demand
- brand building in wealth channel
Companies and tickers mentioned
- Hg
- HgTrust
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Alt Goes Mainstream, this episode and its artwork belong to Michael Sidgmore. Octagon is not affiliated with the show; this page is an independent summary.
