Thematic opportunities in volatile markets
"Despite current volatile market conditions, the long-term growth prospects for private markets remain strong. Investors are increasingly recognizing the benefits of private markets: strong and resilient returns, lower volatility than public markets, and value creation through active ownership. At EQT, during the first quarter of the year, we continued to leverage our global scale and executed on thematic opportunities."
CEO and Managing Partner
Highlights for the period Jan-
Strategic
- EQT continued to make preparations for semi-liquid fund structures to accommodate private wealth investors, and expects to launch certain products during the year, with the expectation of first launching a product aimed at making certain strategies within
EQT Private Capital andEQT Infrastructure available to private wealth investors - EQT continued the work to capture synergies with BPEA, with the main integration areas substantially complete, including alignment of investment teams and processes
Fundraising
- Fee-generating assets under management (FAUM) increased to
EUR 119bn (EUR 77bn ). Total AUM wasEUR 216bn -
EQT set the hard cap for EQT Infrastructure VI at
EUR 21bn . The fund, which has a target size ofEUR 20bn , was activated in lateDecember 2022 . As of31 March 2023 , the fund had fee-generating commitments from early closings ofEUR 5.9bn . The fund is expected to hold its first close in H1 2023, with a majority of fundraising expected to be concluded in 2023 -
Fundraising continued for EQT X with fee-generating commitments of
EUR 17.2bn as of31 March 2023 . The target fund size isEUR 20bn , and fundraising is expected to be materially completed during the summer - Fundraising continued for EQT Future, EQT Exeter US Industrial Value VI, EQT Exeter Multifamily Value II, EQT Exeter EU Industrial Core-Plus II and EQT Active Core Infrastructure
Investment activity
- Total investments by the EQT funds in the quarter amounted to
EUR 5bn (EUR 3bn ) -
Investments during the quarter include
Radius Global Infrastructure and Tion Renewables (EQT Active Core Infrastructure), Lazer Logistics and SK Shieldus (EQT Infrastructure VI), IntegrityNext and GotPhoto (EQT Growth) and the acquisition of va-Q-tec by Envirotainer (EQT X)
Exit activity
- Total gross fund exits in the quarter amounted to
EUR 1bn (EUR 2bn ) -
Signed exits include Blume (EQT Infrastructure II and
EQT Infrastructure III ), VBill (EQT Mid Market Asia III) and a partial sell-down inCoforge (BPEA VII)
Investment performance
- All key funds continued to perform On plan or Above plan
- During the period, fund valuations remained resilient, underpinned by continued strong underlying performance in the portfolio companies, as well as supportive public market valuation benchmarks
People and future-proofing
- The number of full-time equivalent employees and on-site consultants (FTE+) amounted to 1,792 (1,319), of which 1,687 (1,223) were FTEs
Suzanne Donohoe joined EQT in January as Chief Commercial Officer ("CXO") to lead a newly-formed platform to drive EQT's external commercial activities. In addition to Capital Raising & Client Relations, the new platform "EQT-Ext" includes EQT's Sustainability, Business Development, and Communications efforts-
EQT strengthened its commitment to
South Korea with the opening of an office inSeoul - As of the end of the first quarter, ten portfolio companies had validated their science-based targets, and additionally 33 had formally engaged with the Science Based Targets initiative to set their own science-based targets
Events after the reporting period
- Investment levels in EQT key funds as of
20 April 2023 , were 10-15% in EQT X, 10-15% in EQT Infrastructure VI and 15-20% in BPEA VIII
Presentation of
Financial analysts and media are invited to participate in a conference call, including a presentation at
The presentation and a link to follow the webcast and conference call live can be found here and a recording will be available afterwards.
To participate by phone, please register here. You will then receive your personal dial-in details, to be able to ask questions during the Q&A.
Information on
The Group operates in a market driven by long-term trends and thus believes quarterly financial statements are less relevant for investors. However, in order to provide the market with relevant and suitable information about the Group's development, EQT publishes quarterly announcements with key operating numbers that are relevant for the business performance (taking Nasdaq's guidance note for preparing interim management statements into consideration). In addition, a half-year report and a year-end report including financial statements and further information relevant for investors is published. Finally, EQT also publishes an annual report including sustainability reporting.
Contact
EQT Shareholder Relations, shareholderrelations@eqtpartners.com
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
This is information that
About EQT
EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. EQT has investment strategies covering all phases of a business' development, from start-up to maturity. EQT today has
With its roots in the Wallenberg family's entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.
More info:www.eqtgroup.com
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