EQT has closed its eighth flagship fund on its hard cap of 10.75 billion euros ($13.2 billion). EQT VIII launched in Sept. 2017 and received about 70 percent of the commitments from existing investors. Fund VIII LPs include Ardian, HarbourVest, The Andrew W. Mellon Foundation and Teacher Retirement System of Texas, among many others.
EQT today announces that the eighth fund within the Equity investment strategy, EQT VIII (or the “fund”), held a first and final close at its hard cap of EUR 10.75 billion. The fund officially launched in September 2017.
Investor demand from both existing and new investors was strong with approximately 70% of the commitments to EQT VIII made by investors in the predecessor Equity fund, EQT VII.
“The successful fundraising of EQT VIII confirms the support for EQT’s investment and ownership approach. We are extremely proud to have earned investors’ trust and are fully committed to using EQT’s experience to find solid businesses with transformational potential. EQT seeks to create superior and sustainable value by improving companies with the support of EQT’s superb Industrial Network and the investment advisory teams at EQT Partners”, comments Christian Sinding, Head of the EQT Equity investment advisory team and Deputy Managing Partner at EQT Partners.
EQT VIII will continue the investment strategy of the previous EQT Equity funds. The Equity funds have a strong track record of “future-proofing” companies, on average their portfolio companies increased sales by 10% and earnings by 13% annually during such funds’ ownership. The fund will be deployed into high-quality companies with strong development potential using the EQT value creation toolbox, global platform, digitalization experience and proven governance model to drive performance. Through a thematic and sector-based approach, and by being local with locals, EQT intends to source unique investment opportunities in EQT VIII’s target markets. Investment opportunities will be sought primarily in Northern Europe, focusing on three core sectors, Healthcare, TMT and Services, as well as selectively investing in Industrial Technology and Consumer Goods.
When deploying the fund, EQT VIII will utilize the expertise of the Equity investment advisory team at EQT Partners, as well as the specialists from EQT’s independent Industrial Network.
Thomas von Koch, CEO and Managing Partner at EQT Partners, continues: “EQT VIII marks yet another milestone in our long-term strategy, manifesting EQT’s position as a leading global investment firm. With EQT’s vision of becoming the most reputable investor and owner, our strategy is to make EQT VIII the best possible home for companies poised for growth, as well as be a responsible corporate citizen in the societies where we operate.”
The fundraising was led by the in-house Investor Relations team within EQT Partners. Jussi Saarinen, Partner and Head of Investor Relations, says: “We are humbled by the confidence that the investors have in EQT and very pleased with the high quality of the fund’s investor base.”
EQT VIII is backed by a global blue-chip investor base including, among others, AP2, AP6, Ardian, Argentum, CNP Assurances, Daido Life Insurance Company, The Dai-ichi Life Insurance Company, Danske Bank Wealth Management, Elo, Fubon Life Insurance Company, GIC, GoldPoint Partners, HarbourVest Partners, Harel Insurance, Ilmarinen, Keva, The Andrew W. Mellon Foundation, Nan Shan Life Insurance Company, The New York City Retirement Systems, Northwestern Mutual Life Insurance, P+, Partners Group, PFA Pension, Sampension, Signal Iduna, Teacher Retirement System of Texas, Teachers’ Retirement System of the State of Illinois, TryghedsGruppen, Universities Superannuation Scheme and Varma.
EQT is a leading investment firm with approximately EUR 49 billion in raised capital across 26 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership – in short, future-proofing portfolio companies.
More info: www.eqtpartners.com
About the EQT VIII fund
EQT VIII is a EUR 10.75 billion fund that will target primarily control equity investments as well as significant influence investments in companies with 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. EQT VIII will seek to make equity investments typically ranging between EUR 150 million and EUR 1,000 million. The geographical focus will primarily be Northern Europe and the fund will mainly focus on investments in the Healthcare, TMT and Services sectors.