EQT goes big with first post-IPO flagship

If the fund reaches its €14.75bn target, it will be one of the largest European private equity funds ever raised.

Scandinavian giant EQT has set the target for its ninth flagship fund at €14.75 billion.

The firm, which listed on the Stockholm Stock Exchange last September, sent out a notice with the proposed fund size.

The target for EQT IX is substantially larger than its predecessor, which closed on €10.75 billion in February 2018 after just six months in market.

In the notice, EQT said Fund IX’s investment strategy and commercial teams are “expected to be materially in line” with the predecessor vehicle. Management fees for Fund IX will not be switched on until either the closing of the fund’s first investment or the end of the commitment period for Fund VIII, whichever comes first.

In September, ahead of the firm’s planned initial public offering, EQT released detailed analysis of its track record. At the time, EQT’s private capital business had €22.3 billion of assets under management across 10 active funds.

Since inception, this unit had delivered a 20 percent net internal rate of return and 2.4x realised gross multiple of invested capital across 74 exits, according to an IPO prospectus published on 12 September.

Here’s how the private equity business has performed over time: