EQT Raises $6.5B Sixth Fund

Swedish private equity firm EQT has raised 4.75 billion euros ($6.5 billion) for its sixth fund, Reuters reported Friday. EQT is backed by Sweden’s billionaire Wallenberg family, and the family fund Investor AB is the firm’s biggest investor, with a maximum commitment of up to 450 million euros, Reuters wrote

(Reuters) – Swedish private equity firm EQT has raised 4.75 billion euros ($6.5 billion) for its sixth fund, the buy-out firm backed by Sweden’s billionaire Wallenberg family said.

Strong demand enabled the fund to reach its funding target in less than nine months, the group said on Friday.

EQT planned to continue to make investments in the health care sector, which is increasingly being funded by private money in northern Europe as governments cut costs.

In July, the fund purchased Swedish firm Atos Medical, which makes artificial voice boxes for people who have had throat operations and other prosthetic tools and had 2010 sales of 64 million euros.

The Wallenberg family fund Investor AB [INVEb.ST] remains the biggest investor in EQT with a maximum commitment of up to 450 million euros, a spokesman for the fund said.

Even though financing markets for leveraged buyouts have faltered in Europe, EQT said Scandinavian banks would likely be willing to lend for buyouts.

“In the Nordic countries, financing is available with roughly around 50 percent leverage for investments between 1.0-1.5 billion euros,” EQT spokesman Johan Hähnel said. ($1 = 0.730 euro) (Editing by Dan Lalor)