EQT to tell investors €4bn fund is full

The Nordic buyout firm is set to hold a final close €1bn ahead of its original target with its latest fund fully allocated to its hard cap.

EQT, the Nordic buyout house run by Conni Jonsson, is expected to notify potential investors in its latest fund today that it is now fully allocated up to a hard cap of €4 billion, after a first closing last week on €2.5 billion.

Investors that had not signalled a commitment to the fund will be unlikely to receive an allocation, an investor said. MVision, EQT’s placement agent, declined to comment.

Jonsson: expected to tell potential investors that its latest fund is fully allocated

A Nordic-based investor said MVision, headed by Mounir Guen, had done well to overcome any reservations investors may have about EQT’s highly concentrated portfolio in its current fund.

A rival placement agent said this had not been an issue for most investors who had pushed demand for the latest fund to €6 billion. EQT’s formal target in its private placement memorandum had been €3 billion.

EQT and MVision now face the task of scaling back investors’s allocations to take the fund to its hard cap.

The firm raised €2.5 billion for its last fund which it invested in two years, backing some large investments, such as the €3.3 billion take-private of Gambro, a Swedish healthcare company; the €1.6 billion acquisition of MTU Friedrichshafen, a heavy engines group, and ISS, the cleaning company it bought with Goldman Sachs for €3.1 billion.

Another investor said EQT would continue with its investment thesis to target both midmarket deals and large deals and at different points in the industrial cycle its funds would be weighted more towards large deals.