EQT sets EUR 20bn target size for EQT X

The GP said the investment strategy will be in line with its predecessor fund, EQT IX. It says management fees will be charged from either the closing date of EQT X's first investment, or the date of termination of the commitment period of the predecessor fund, whichever is earlier.

The GP held a final close of EQT IX in April 2021 on EUR 15.6bn. The fund is currently around 75-80% invested, according to the GP. Investments include the EUR 4.5bn buyout of Cerba Healthcare, a global diagnostics company.

EQT Infrastructure V is around 60-65% deployed.

Across all funds, the GP seeks to start investment activities when the predecessor is 80-90% invested.

It has also set a hard-cap for EQT Active Core Infrastructure, a longer-held infrastructure fund, at EUR 5bn; and EQT Ventures III at EUR 900m.

EQT said fundraising continues for EQT Growth, EQT Future and various EQT Exeter funds.

Full-year results
The announcement comes as EQT also revealed its full-year results. It saw adjusted revenues increase 113% to EUR 1,623m, which it says was driven by management fees from EQT Infrastructure V, EQT IX and EQT Exeter, plus carried interest from EQT VIII.

It also saw EBITDA grow 185% to EUR 1,100m with a margin of 68%, compared with 51% the year before.

The total investments across all of EQT's funds increased to EUR 20.6bn from EUR 12bn.

The GP realised EUR 30.7bn from exit activity, against EUR 3.2bn in 2020.

EQT VI had its final exit with WS Audiology and will be removed from the key funds list, having delivered a gross money on invested capital (MOIC) multiple of 2.5x.

EQT said several companies are being prepared for exits across all funds. Its share price rose 7% on opening.

Selected 2021 exits
According to a source, the firm completed several exits last year. Among these was Suse, a provider of open source infrastructure software for large enterprises, which the GP acquired via EQT VIII in 2018, and exited via a listing on the Frankfurt Stock Exchange, generating a return of 3.8x MOIC and a 64% IRR.

The GP sold Adamo, a provider of fibre broadband services, in an SBO to Ardian Infrastructure. EQT acquired the Spain-based company via EQT Mid-Market Europe in 2017, and its sale generated a return of 9.2x MOIC and a 75% IRR.

Elsewhere, sustainable energy service Getec was exited via an SBO to JP Morgan-backed IIF. The company was originally acquired by EQT Infrastructure III in 2017, and its subsequent sale returned 4.8x MOIC and a 40% IRR.

The GP exited Azelis, a service provider to the speciality chemicals and food ingredients industries, via a listing on Euronext Brussels. It was acquired by EQT VIII in 2018, and the flotation generated a return of 3.8x MOIC and a 54% IRR.

EQT also sold Igenomix, a molecular genetics diagnostics company, to trade player Vitrolife. Acquired by EQT VIII in 2019, the Igenomix sale generated a return of 3.7x MOIC and a 70% IRR.

Strategic
EQT bolstered its investment in life sciences venture capital and real estate through the acquisition of LSP (Life Sciences Partners) late last year; LSP has EUR 2.2bn in assets under management. EQT also acquired Exeter Property Group, to make the combined group EQT Exeter.

The GP said it strengthened its presence in the Asia-Pacific region by opening new offices in Japan and Korea.

The firm also moved towards more sustainable and impact-driven funds, raising EUR 500m in a sustainability-linked bond, and launching an impact-driven longer-held fund called EQT Future.

The GP claims to be the first private markets firm to set science-based targets, making greenhouse gas emission reduction targets in line with the 1.5°C described in the Paris Agreement.

In addition, EQT doubled the IPO share lock-up period, alongside a partial lock-up release, saying that it is committed to reinvesting 50% of net proceeds from the lock-up release in EQT funds.

This has drawn the attention of the Swedish Financial Supervisory Authority (SFSA), which EQT says is evaluating the timing of the announcement and other handling of information.

"We remain confident that we handled the information correctly. We are of course assisting the SFSA in their review, and we are awaiting their decision," said CEO Christian Sinding.

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

• Topics
• Funds
• Buyout
• EQT