EQT closes mid-market fund on €1.6bn hard-cap

The fund's predecessor was closed in 2014 on €1.1bn and was also deployed in Asian assets. This latest vehicle is a continuation of EQT's traditional strategy, focusing on mid-market opportunities in the northern European market, and the GP is raising a dedicated Asian vehicle this time around.

EQT Mid Market Europe was launched in Q1 2016 and reached a first close on €1.1bn in July last year, partner Jannik Kruse Petersen told unquote". Like EQT's latest efforts, the fund is domiciled onshore. It has a typical five-year investment period and a 10-year lifespan. EQT did not use the services of a placement agent, and Simpson Thacher & Bartlett provided legal advice.

Between 2014 and the closing of this latest vehicle, EQT went on to significantly bolster its assets under management. The firm closed its flagship vehicle, EQT VII, on its €6.75bn hard-cap in mid-2015, less than six months after launch. According to unquote" data, that fund was around 19% deployed as of September last year.

EQT also diversified its offering with the €530m closing of its European mid-market credit fund in April 2016, followed by the €4bn close of its third infrastructure fund earlier this year.

Investors
According to EQT, approximately 80% of the commitments were made by investors in prior EQT funds. The LP base includes AP4, AP6, BNP Paribas Fortis, Danica Pension, Danske Bank Wealth Management, DNB Private Equity, EQ Asset Management, GoldPoint Partners, HarbourVest Partners, Neuberger Berman Private Equity, SEB Asset Management, Teachers' Retirement System of the State of Illinois and UBS Asset Management.

Overall, EQT attracted around 60 LPs, Petersen told unquote". The investor base is predominantly Europe-based, with significant support from the US and a handful of Asian LPs.

Investments
The fund's 2014 predecessor, EQT Mid Market, looked to invest between €80-150m for European deals. EQT Mid Market Europe will only focus on northern European assets and will pursue similar tickets.

The fund has already closed four investments: Dutch domain hosting service TransIP, German cyber security firm Utimaco, Spanish fibre-optic service Adamo and Danish medicated chewing gum business Fertin Pharma.

According to Petersen, the fund is already deployed at 20% and will look to make 15-17 investments over its lifespan. The GP is currently looking at a number of opportunities, the partner added.

People
EQT – Jannik Kruse Petersen (partner, head of Mid Market Europe).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Funds
• Nordics
• UK / Ireland
• DACH
• Buyouts
• EQT
• Sixth AP Fund