EQT sets €14.75bn target for new flagship fund

Greg Gille
15 January 2020

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EQT is formally back on the road for its next flagship fund, EQT IX, with a тЌ14.75bn target.

EQT registered several vehicles in Luxembourg on 21 November last year, in preparation for the launch of the EQT IX fundraise in 2020. The GP stated in its Q3 2019 results on 5 November that it would look to begin formally fundraising for EQT IX in 2020, given that EQT VIII was already 65-70% deployed.

EQT usually raises funds in-house, without the help of placement agents.

Management fees for the new fund will be charged either from the closing of its first investment or the day that the predecessor fund terminates its commitment period, whichever comes first. Management fees for EQT VIII will thereafter be based on net invested capital.

EQT VIII hit its €10.75bn hard-cap at a first and final close in February 2018. The fund was launched in September 2017, targeting €8bn. Launched in January 2015, EQT VII targeted €5.25bn before closing less than six months after launch on its €6.75bn hard-cap.

EQT also recently closed EQT Ventures II on €660m, surpassing its €600m target following a launch in April last year. The fund's predecessor, EQT Ventures I, closed on €566m in 2016 after less than a year on the road.

The firm successfully listed on Nasdaq Stockholm in late September, pricing at the top of the range. Its market cap currently stands at around €10.8bn.

Investments
The fund's investment strategy and terms are expected to be broadly in line with EQT VIII, the firm said in a statement.

EQT VIII targeted primarily majority equity investments in companies with strong market positions and cash flows, deploying equity tickets of €150m-1bn. The firm focuses mostly on northern Europe, targeting primarily the healthcare, telecoms, media, technology and services sectors.

Recent deals from EQT VIII include the CHF 10.2bn buyout of skin care company Nestlé Skin Health alongside ADIA in May last year. The GP also sold a 9.9% stake in Anticimex (an EQT VI investment) to Singaporean sovereign wealth fund GIC in November in a deal that valued the company at around €3.6bn.

The EQT funds invested approximately €10bn in the first three quarters of last year, the firm said in its Q3 2019 report. Total exits for the first nine months of 2019 amounted to €5.6bn, including the sales of Press Ganey in the US and AutoStore in Europe.