EQT closes new European tech growth-stage fund on EUR 2.2bn

Ero Partsakoulaki
12 September 2022

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EQT has held a EUR 2.2bn final close on EQT Growth above its EUR 2bn target, raising total commitments of EUR 2.4bn to invest in growth-stage technology companies in Europe and Israel.

Total commitments include funds raised from EQT employees and the EQT Network, which are not fee-generating, according to an announcement from the GP.

EQT Growth, launched in July 2020, will support fast-growing technology companies, especially in Europe and Israel, as they continue to scale. The GP sees large opportunity for a growth investor with European roots and local expertise, according to the announcement.

A source familiar with the situation told Unquote that the firm thinks the long-term fundamentals of European tech are strong, especially within its four primary target sub-sectors. Investments will be supported by secular macro trends and led by strong management teams, the source added.

The vehicle is backed by a global group of investors including pension funds, sovereign wealth funds, asset managers and high-net-worth individuals from across Europe, Asia, North America and the Middle East, according to the announcement.

Investments
EQT Growth will invest around EUR 50m-EUR 200m in high-growth companies that have achieved product-market fit and are taking their next step to scale, primarily within four tech sub-sectors: enterprise, con/prosumer, health, and climate, according to the announcement.

The fund, which still has over two-thirds of capital available, has made seven investments to date. Deals in the portfolio include the USD 450m investment in Sweedish music-tech platform for restriction-free music Epidemic Sound (2017), EUR 235m investment in Germany-based software-as-a-service (SaaS) banking platform Mambu (2021) and EUR250m series-F round for second-hand fashion app Vinted (2021), giving it a pre-money valuation of EUR 3.5bn, as reported.

EQT has EUR 77bn in assets under management (AUM) as of 30 June 2022, across 36 active funds, according to a press release. It launched its latest flagship fund, EQT X, in January 2022 with a target of EUR 20bn and a hard cap of EUR 21.5bn, according to Unquote Data.