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Private Equity Firm EQT Closes Its Biggest Fund to Date

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August 5, 2015

 

Private equity firm EQT highlighted the increasing investor interest towards European funds, as it closed its seventh fund at record high. EQT managed to raise €6.75 billion with the new fund, which will focus on investing in Northern European businesses with a strong industrial approach.

 

The Fund

 

The fund is the Swedish firm’s seventh fund and the EQT VII fund is the largest fund by the firm and among the largest European buyout funds of all times. The firm announced the closure of the fund on Tuesday as it reported on the stronger than expected support for the fund.

 

According to EQT, the interest remained high throughout the process, with both existing and prospective investors showing interest. In the end, the fund became ‘significantly oversubscribed’.

 

Thomas von Koch, managing partner at EQT Partners, said in the statement, “We are proud, yet humbled, by the positive reception and strong support for EQT VII among both existing and new investors…The fundraise fortifies EQT’s position as a leading integrated alternative investment firm and is also an important milestone in EQT’s long-term growth strategy.”

 

The Investors

 

The private equity firm has had strong support from a large group of investors. The trust from its previous investors is highlighted by the fact that around 70% of the new fund’s commitments are from investors from previous funds.

 

Some of the investors involved with the seventh fund include AP3, CNP Assurances, HarbourVest Partners, the New Mexico State Investment Council and USS. The investors range from family offices to financial institutions. Furthermore, the firm’s website points out its investors come from all regions of the world, with the Nordic region providing 26% of investors and 38% coming from the rest of Europe. North American investors make 25% of EQT’s investor base and 7% come from the Asia Pacific.

 

The firm’s previous fund closed at €4.75 billion. The previous fund has invested in companies such as the Norwegian broadband operator Broadnet and the Swedish animal healthcare group, Evidensia.

 

Its past portfolio of companies includes businesses across Europe, Asia and the US. It recently made an exit from the UK company SSP, a train station concession operator, and the Bulgarian cable operator Blizoo.

 

The Focus

 

The €6.75 billion fund is looking to invest mainly in Northern Europe. According to the private equity firm, the typical investment made from the fund will range from €125 million to €600 million.

 

The statement said the company is seeking to invest in companies that have “strong market positions, significant potential for revenue and earnings growth, strong cash flows and a solid platform that can retain and attract high-quality management.”

 

Furthermore, the firm believes its industrial approach will continue to meet investor expectations with the new fund. Christian Sinding, head of equity at EQT Partners, said, “EQT’s growth-oriented approach of investing in high-quality businesses has since inception generated impressive annual growth across the companies within the Equity investment strategy”.

 

DealMarket will continue to keep an eye on where the new fund will invest first. In the meantime, you can find private equity deals at the DealMarket platform.

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