Private Equity News & Analysis

EQT raises E2bn fund

The fund will focus on the Nordic region and Germany and will make investments in established industrial and services companies.

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Private equity firm EQT Partners has announced a final closing of its EQT Northern Europe fund at E2bn.

EQT makes acquisitions or takes majority stakes (at least 50 per cent) in established businesses in the industrial, services and healthcare sectors. It also looks at other sectors including technology, and has made technology related investments, but requires the businesses it looks at to have an established market position and a good track record.

Commenting on the raising of the fund in current market conditions, a spokesperson for EQT told PEO that the strategy and focus of the company has been beneficial. “To some extent we have been protected. It’s been beneficial that we are not focused on technology investments or the internet because clearly if that had been the focus it would have been more difficult to raise the fund,” he said.

The fund, whose original target was E1.5bn, was substantially oversubscribed and EQT says that it was forced to scale back investors at the final close to stay under its self imposed cap. Of the total raised, 60 per cent came from investors in EQT’s previous fund, EQT Scandanavia II.

The fund has secured commitments from investors worldwide, with approximately 50 per cent coming from the Nordic countries, 20 per cent from other European countries, 20 per cent from the US and 10 per cent from the rest of the world. Of the total amount raised, approximately 25 per cent came from family groups and endowments or foundations. Insurance companies provided 25 per cent of the amount raised, 24 per cent came from pension funds and the balance came from banks and fund of funds. Merrill Lynch served as financial advisor and exclusive placement agent.

EQT is a group of private equity funds which has equity commitments totalling E3.2bn including EQT Northern Europe. It was founded in 1994 and has so far invested approximately E1bn in 24 companies based in the Northern European region. EQT has offices in Copenhagen, Helsinki, Munich and Stockholm. Funds are managed by EQT Partners.