Nic Humphries is Senior Partner and Executive Chairman of Hg, Europe's largest software investor managing assets across nearly 60 businesses. Over 25 years Nic has helped transform Hg from a small division of Mercury Asset Management into a hyper-specialised, institutional-grade platform that has consistently delivered strong returns with the vast majority of realised investments returning multiples of invested capital. Few people in European private equity have seen more technology cycles, made more consequential bets or thought more carefully about what it actually means to build a firm that compounds over decades.

In this episode Nic traces the pivotal decision to go sector-specialist in technology at a time when most of his partners thought it was career suicide. He gives a remarkably candid account of blowing up his first two investments in the early 1990s and what that taught him about the circle of competence, why he walked away from being CEO because he had passed the threshold of managerial incompetence, and how Hg's engineering mindset has shaped everything from deal execution to succession planning. He also gives the most direct and considered take on AI we have heard across this series, framing it as a once-in-20-year platform shift and an execution game pure and simple.

Key themes from this conversation:

• The founding decision to go sector specialist and why it took two years of internal debate to get there
• Why most private equity is extractive and why product innovation is the only true path to long term compounding returns
• Hg's Catalyst program, 100 AI engineers on the balance sheet loaned directly into portfolio companies
• How blowing up two investments in 1993 led directly to the inch wide mile deep philosophy
• Succession done right, servant leadership and why nobody at Hg actually wants to be CEO
• The AI platform shift, why Hg sees it as an execution game and what the portfolio is doing about it today
• Building a firm that treats investors, founders and counterparties with equal respect over 25 years

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