Northern European private equity investor EQT VI has closed its latest fund at 4.75 billion euros ($6.58 billion) with strong interest from new investors in Asia, Middle East and North America.
EQT VI has successfully completed its fundraising at the hard cap of 4.75 billion euros ($6.58 billion). Interest from both existing and new investors was strong and the fundraising was completed in less than nine months. Demand for the fund greatly exceeded the hard cap of EUR 4.75 billion and a first close was reached on July 1, securing commitments of 83% of the targeted fund size.
“A key factor behind this successful fundraising was EQT’s proven industrial model for developing and growing companies. The very swift process and solid interest from existing as well as new investors bear evidence of strong confidence in EQT’s ability to create value through industrial development and earnings growth”, says Christian Sinding, Head of Equity at EQT Partners which advises EQT VI.
One ambition for EQT VI was to broaden the investor base in terms of geography and 23% of the total commitments came from investors in the Asia Pacific region compared to 7% in the preceding fund, EQT V. Investors from the Middle East committed 5% of the fund and North American investors 22%. Non-European investors thereby account for 50% of the fund compared to approximately a third in EQT V.
Sovereign wealth funds and pension funds account for 53% of the committed capital compared to 31% in the preceding fund. Among the fund’s blue chip investors are: Adams Street Partners, AP4, AP6, Argentum, ATP PEP, Capital Dynamics, CNP Assurances, Danica Pension, GIC, HarbourVest, Hermes GPE, Howard Hughes Medical Institute, Ilmarinen, IL TRS, Makena Capital, Nordea Bank, New York Life Capital Partners, Ontario Teachers’ Pension Plan, Pantheon, Partners Group, Quentin Ayers, Sampo, San Diego County Employees Retirement Association, Skandia Liv, SUVA, Varma and Unigestion.
“It is very satisfying having received such strong support from a large group of well renowned and sophisticated investors, especially in today’s challenging fundraising market”, says Conni Jonsson, Managing Partner at EQT Partners.
The strategy of EQT VI remains essentially the same as for EQT V with a focus on Northern and Eastern Europe and a bias towards quality companies with a clear potential for growth and market or industry leadership. EQT VI made its first investment in July through the acquisition of the Swedish medical technology company Atos Medical.
“We are headed for uncertain times with financial turbulence and a weakening economic environment but EQT has a strong track record of growing and improving companies also in more challenging times. There is a strong pipeline of investment opportunities in all of EQT’s core European markets and the combination of more than 120 investment professionals at EQT Partners and EQT’s unique global network of Industrial Advisors reinforces EQT’s position at the forefront of the European buyout industry”, concludes Conni Jonsson.
EQT is the leading private equity group in Northern Europe with close to 18 billion euros ($25 billion) in raised capital and multiple investment strategies. Together with a superior network of Industrial Advisors, EQT implements its business concept by acquiring or financing good medium-sized to large companies in Northern and Eastern Europe, Asia and the United States, developing them into leading companies. Development is achieved by applying an industrial strategy with focus on growth. Since inception, EQT has invested more than 10.5 billion euros ($14.6 billion) in around 100 companies and exited close to 50. EQT-owned companies have more than 550,000 employees.
EQT VI makes control investments in high-quality, market leading, medium-sized to large companies in growing industries in Northern and Eastern Europe with a potential for top-line growth.
EQT Partners, acting as investment advisor to the managers of each EQT fund, has around 120 investment professionals with an extensive industrial and financial competence. EQT Partners has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Singapore, Stockholm, Warsaw and Zurich.