VISMA IPO DELAY HITS PE GIANT HG AMID SAAS SLOWDOWN

Visma, valued at €19 billion, was expected to provide a major exit for Hg Capital, one of Europe's largest software-focused buyout firms. The delay comes as SaaS companies face investor skepticism over growth prospects and profitability amid rising interest rates and economic uncertainty. The timing underscores the broader "SaaSpocalypse" concerns circulating through the sector—a reference to elevated valuations that many believe cannot be sustained. Software companies have seen their multiples compress significantly from pandemic-era highs, complicating exit strategies for private equity investors who loaded up on acquisitions during the boom. Hg has built its reputation on acquiring fragmented software markets and consolidating them through add-on deals. A successful Visma IPO would have validated that strategy and generated substantial returns for the firm's investors. The postponement suggests even high-quality assets face headwinds in the current climate.