EQT : publ) Quarterly Announcement Q2 2020

"I am pleased to report that we are executing on EQT's defined strategy, despite the ongoing pandemic and challenging markets - it proves how resilient and long-term our business model is. We have signed an agreement to divest EQT Credit, we see good fundraising momentum and recently announced the target fund size for EQT Infrastructure V at EUR 12.5 billion. We are also breaking new grounds with the ESG-linked credit facility related to EQT IX, the largest ever in the global fund financing markets. And deals are being made across the different business segments, albeit fewer exits. Within the portfolio, our longstanding thematic investment strategy, makes the companies more resilient and less affected by the crisis. But we are all affected one way or the other, we stay cautious - prepare for the worst and hope for the best - while also capturing opportunities."

Christian Sinding, CEO

 

HIGHLIGHTS DURING THE Second QUARTER 2020

· Total investments by the EQT funds in the quarter amounted to EUR 1.3bn, of which EUR 0.4bn within Credit
· Investments made during the quarter include Schülke in Germany (EQT VIII) and Freepik in Spain (EQT Mid Market Europe)
· Total gross fund exits in the quarter amounted to EUR 0.3bn, of which the vast majority within Credit
· Expected value creation (Gross MOIC) remains "On plan" in key funds in Private Capital and Real Assets, while EQT Infrastructure III, as of June 30, 2020, continued to develop "Above plan"
· An agreement to sell the business segment Credit to Bridgepoint has been signed, as announced on June 18, 2020. The transaction is expected to close in the fourth quarter of 2020
· The target size for EQT Infrastructure V was set at EUR 12.5bn as announced on June 30, 2020
· Succesful execution of both the Annual General Meeting and the Annual Investor Meeting through a fully digital solution, leading the way in digitalisation and sustainability
· EQT's integrated approach to sustainability emphasized through launch of an ESG-linked fund level bridge facility for EQT IX of EUR 2.3bn - first of this size in the global fund financing markets
· EQT's Paris office was officially opened
 

HIGHLIGHTS During the Last Twelve Months (Compared to LTM ending June 2019)

· Total fund investments of EUR 8.5bn (EUR 12.2bn), of which EUR 2.3bn (EUR 1.6bn) within Credit
· Investment level in key funds as of June 30, 2020, excluding events after the reporting period: 70-75% in EQT VIII (50-55% as of June 30, 2019) and 80-85% in EQT Infrastructure IV (40-45% as of June 30, 2019)
· Total gross fund exits of EUR 3.8bn (EUR 7.0bn), of which EUR 1.0bn (EUR 1.1bn) within Credit  
· Fee-generating AUM of EUR 40.1bn as of June 30, 2020 (EUR 40.1bn)
· Number of full-time equivalent employees and on-site consultants (FTE plus) amounted to 742 (646) at the end of the period, of which FTEs amounted to 688 (587)
 

EVENTS AFTER THE REPORTING PERIOD

· The fundraising of EQT IX (target fund size of EUR 14.75bn and hard cap of EUR 15.0bn) runs according to plan and is anticipated to be materially concluded during the third
quarter - the fundraising efforts will shift to focus mainly on EQT Infrastructure V
· With the acquisition of IFS by EQT VIII and EQT IX announced on July 14, 2020, EQT VIII is expected to be 80-85% invested and the commitment period has been terminated
(remaining commitments to be used primarily for add-on acquisitions and strategic capital injections as well as for ongoing expenses)
· Simultaneously, the successor fund EQT IX was activated and consequently started
charging management fees. With the acquisition of IFS, EQT IX will be 5-10% invested based on the target fund size of EUR 14.75bn
· EQT Infrastructure IV, through a controlled entity, has entered into a new scheme implementation agreement to acquire Metlifecare at a reduced price, as announced on July 10, 2020 (investment included in the 80-85% investment level as of June 30, 2020)
· EQT VIII portfolio company SUSE acquired Rancher labs as announced on July 8, 2020
 

Presentation of EQT AB's Q2 2020 announcement
Financial analysts and media are invited to participate in a telephone conference, including a presentation at 08.30 CEST. The presentation for the telephone conference will be available on  www.eqtgroup.com/shareholders/financial-reporting.
At the telephone conference, Christian Sinding, CEO and Managing Partner, and Kim Henriksson, CFO, will present EQT AB's Q2 announcement, followed by a Q&A session.
To participate, please use the following dial-in details, at least 10 minutes in advance.
Sweden:                               [phone]
UK:                                      [phone]
USA:                                    [phone]
Confirmation Code:               97671966
The telephone conference can be followed live on www.eqtgroup.com/shareholders/financial-reporting and a recording will be available afterwards.
Information on EQT AB's financial reporting
The EQT AB Group has a long-term business model founded on a promise to its fund investors to invest capital, drive value creation and create consistent attractive returns over a 5 to 10-year horizon. The Group's financial model is primarily affected by the size of its fee-generating assets under management, the performance of the EQT funds and its ability to recruit and retain top talent. he Group operates in a market driven by long-term trends and thus believes quarterly financial statements are less relevant for investors in EQT AB's share. 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, EQT AB publishes a half-year report and a year-end report including financial statements and further information relevant for investors in the EQT share. EQT also publishes an annual report including sustainability reporting.
Contact
Kim Henriksson, CFO, [phone]
Nina Nornholm, Head of Communications, [phone]
EQT Press Office, [e-mail], [phone]
This is information that EQT AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on July 16, 2020
About EQT
EQT is a differentiated global investment organization with a 25-year track-record of consistent investment performance across multiple geographies, sectors, and strategies. EQT has raised more than EUR 62 billion since inception and currently has around EUR 40 billion in assets under management across 19 active funds within three business segments - Private Capital, Real Assets and Credit.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.The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in 17 countries across Europe, Asia Pacific and North America with more than 700 employees.
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