EQT Credit II has closed on EUR 845 million, beating its EUR 750 million target. Fund II had about 90 percent of existing investors in the first fund re-commit. About 55 percent of Fund II commitments were raised from the Nordic region, with 20 percent from the rest of Europe and 25 percent from the U.S.
EQT Credit II has successfully completed its fundraising at EUR 845 million, exceeding the fund’s target of EUR 750 million. Interest from both new and existing investors was strong, with over 90% of existing investors committing to the new fund. Approximately 55% of EQT Credit II commitments have been raised from the Nordic region, with 20% from the rest of Europe and 25% from the Americas. This is a broader investor base compared to that of the preceding fund, where the investor base was predominantly Nordic.
EQT Credit II will base its success on a continuation of the strategy employed by EQT Credit I and the EQT V Credit Carve-Out. The fund intends to invest primarily in stressed and distressed situations, including in the debt of companies that may be facing challenges created by excess leverage or the need for additional capital. The fund intends to be a medium-term investor with a bias towards Northern Europe and illiquid or mid-market situations. Further, the fund will seek to make investments relating to companies that it believes are operationally sound and will have consistent cash flows and/or meaningful intrinsic value.
EQT Credit II will leverage the knowledge and experience of EQT’s network of independent Industrial Advisors and the broad EQT platform to obtain proprietary insights on potential investments and enhance the Fund’s due diligence capabilities and its ability to mitigate risk.
Paul de Rome, Head of the EQT Credit Team, comments: “The confidence expressed by investors demonstrates their appreciation of EQT Credit’s proven track record, successful team and distinct position in the credit landscape”.
Pension funds and insurance companies account for over 60% of the commitments in the fund. EQT Credit II is backed by a number of well-regarded international institutional investors including Access Capital Partners, Andrew W. Mellon Foundation, AP4, Finnish State Pension Fund (VER), Gamla SEB Trygg Liv, Lancashire County Pension Fund, Massena Capital Partners, OFI Asset Management, Sampo and Talanx Asset Management, among others.
“The positive outcome of the EQT Credit II fundraising is yet another successful development in the growth of the EQT Credit platform which has been designed to cover the full range of risk profiles and investor appetite”, says Conni Jonsson, Managing Partner at EQT Partners.
EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the US with total sales of more than EUR 25 billion and over 550,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
EQT Credit II invests in the debt of operationally sound but over-leveraged medium-sized European companies, seeks to be a mid to long-term investor and has the flexibility to make investments in the secondary market as well as by providing new funds where traditional sources of capital are unable to provide a satisfactory solution for stakeholders. EQT Services (UK) Limited is the manager of the EQT Credit II fund.
For further information please visit www.eqt.se