EQT pre-marketing fourth infra fund

Paul Tilt (Inframation)
01 August 2018

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EQT is pre-marketing its fourth infrastructure fund to investors ahead of formal LP presentations this autumn, sources said.

EQT Infrastructure IV, which was registered in Luxembourg earlier this month, is expected to continue EQT's strategy of targeting mid-sized infrastructure businesses with growth potential in the Nordic region, continental Europe and North America.

The Financial Times last week reported that the Stockholm-headquartered fund manager could be seeking to raise at least €8bn. Sources said an upper target had not been communicated but added that this figure would be "unsurprising".

The manager is seeking to hold a closing of the fund in late 2018 or early 2019, a source said, adding it was unclear whether this would be a first or final close.

As at 31 March 2018, EQT Infrastructure III was nearly 40% deployed, according to a Maine Public Employees Retirement System investment summary report.

Since then, the Swedish manager has acquired stakes in Nianet, a Denmark-based company that provides fibre data network and internet services; and Spirit Communications, a South Carolina-based data and broadband service provider.

The fund manager also recently entered into exclusive negotiations to acquire French water utility Saur in a deal that will close later this year, subject to approvals.

Separately, 3i Infrastructure and Dutch pension fund ATP recently agreed to invest €220m to acquire Norwegian offshore communication infrastructure provider Tampnet from EQT Infrastructure. EQT originally invested in Tampnet in 2012 through its first and second funds, according to Inframation.

EQT closed its third infra fund on €4bn in February 2017, in a raise that took less than six months and which was heavily oversubscribed.

Fund II closed on €1.925bn in January 2013, while the manager's inaugural infrastructure fund raised €1.17bn in December 2008.

Investors backing EQT Infrastructure III included the Oregon Investment Council, Teachers' Retirement System of Texas, Partners Group Global Infrastructure II, Sumitomo Mitsui Trust Bank and Fubon Life.

As of 30 September 2017, EQT Infrastructure II had a total value to paid-in multiple (comprising distributions plus the residual fund value) of 1.78x, according to a Lancashire Pension Plan FOI request.

EQT declined to comment.

This article first appeared in Unquote sister publication Inframation News