EQT reaches $1.4b close on mid-market fund

The new vehicle, which was launched in February 2013, will be deployed by 35 EQT investment advisory professionals based in Copenhagen, Frankfurt, Hong Kong, Shanghai, Stockholm and Warsaw.

Of the fund capital, 95% was committed by existing EQT investors, which include pension funds, insurance companies and family offices. 51% of the fund commitments were raised from institutional investors in the Nordic region, followed by 22% from the rest of Europe, 16% from North America and 11% from Asia.

The fund will focus on buyouts and growth equity deals from family- and entrepreneur owned businesses, corporate orphans and public-to-private transactions. The typical transaction value ranges between EUR80 - 150 million in Northern Europe and between EUR80- 200 million in Greater China and Southeast Asia. Jan Ståhlberg, deputy managing partner of EQT, will lead the fund.

Stockholm-headquarted EQT has made five investments from the fund so far, including a majority stake in China F&B Group, the Chinese franchise operator of international restaurant chains Dairy Queen and Papa John's Pizza. The rest are in German art retailer Avenso, the swiss smile dental chain, Swedish data communication provider IP-Only and German food business BackWerk.

Speaking to AVCJ's sister publication Unquote, Ståhlberg said that despite the over-saturated market for mid-cap buyout funds in the Nordic region, EQT's new fund will differentiate itself by straddling both Europe and Asia.

The firm's rapid growth over the last 10 years has meant that it has developed a strong international presence, opening an office in Hong Kong in 2005, launching its Greater China fund in 2006, establishing an office in Shanghai in 2007 and opening an office in Singapore in 2010.

Ståhlberg observed how only the mega-buyout-focused funds including Bain Capital and KKR have so far offered an investment strategy that enables European companies to develop into Asian markets. He also noted how, when reviewing EQT's most successful investments, the most impressive returns had been generated by either moving portfolio companies' manufacturing activities into Asia, or taking advantage of emerging market growth found in the Asia.

 

 

 

 

 

 

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• Topics
• Fundraising
• Greater China
• Southeast Asia
• EQT Partners
• Fundraising