EQT said Oct. 10 that its first US-dedicated fund has closed with $726 million in commitments. The fund, EQT Mid Market US, fell short of its $1 billion target, according to press reports. The pool will make control and co-control investments.
STOCKHOLM, Sweden–(BUSINESS WIRE)–
· EQT’s Mid Market US fund closes with commitments of USD 726 million
· A growth buyout investment strategy involving transformation of good companies, within the US middle-market segment, into stronger, more sustainable businesses
· EQT firmly established in the US with three investment strategies – Infrastructure, Equity and Mid Market
EQT today announces that its first US-dedicated fund, EQT Mid Market US, has been closed with commitments of USD 726 million. The closing date was September 30, 2016.
The EQT Mid Market US fund applies a growth buyout investment strategy which involves developing and transforming good companies into stronger, more sustainable businesses. The fund will make control and co-control investments in high-quality companies operating in sectors with strong underlying growth trends. The fund will also leverage EQT’s network of over 250 Industrial Advisors and apply the firm’s proven governance model and alignment principles to help support portfolio company growth.
Two acquisitions have already been made in the US by the fund; FocusVision (global leader in technology-enabled services in the marketing research and intelligence market) and XP Solutions (world leading provider of industry standard sustainable drainage and flood hazard software for the civil engineering and environmental sectors). The fund continues to experience a rich and robust deal flow and pipeline.
The fund is backed by notable, blue-chip investors in North America and Europe including pension funds, insurance companies and fund-of-funds, among other institutions.
The fund closing grows EQT’s footprint in the US with investment advisory teams across three investment strategies – Infrastructure (which was the first EQT strategy in the US, established in 2008), Equity and Mid Market. The Mid Market US investment advisory team comprises 10 professionals, including Matthew Levine and Brendan Scollans as local US Partners. The team is dedicated to the investment strategy and based in New York, with both local and global experience of middle market transactions across sectors.
“The closing of a US-dedicated fund is a milestone in the overall expansion of EQT, being an integrated alternative investment firm with multiple investment strategies globally. We believe EQT’s value-add industrial approach, clear corporate governance model and global platform is distinctive in the US middle market and we believe EQT offers mid market businesses more than traditional private equity firms can offer,” says Jan Ståhlberg, Head of Mid Market US and Deputy Managing Partner at EQT Partners, Investment Advisor to the EQT Mid Market US fund.
The fundraising for the EQT Mid Market fund has now closed. Accordingly, the foregoing should in no way be treated as any form of offer or solicitation to subscribe for or make any commitments for or in respect of any securities or other interests or to engage in any other transaction.
EQT is a leading global private equity group with approximately EUR 30 billion in raised capital. EQT Funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 15 billion and approximately 100,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
About EQT Mid Market US
EQT Mid Market US is a USD 726 million fund which will target control and co-control equity 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 Mid Market US will seek to make equity investments typically ranging between USD 35 million and USD 140 million. The geographical focus will be North America and within the following six sectors – Industrials, Consumer Goods & Retail, Services, TMT, Energy & Environment, and Healthcare.
More info: www.eqtpartners.com