EQT exits Hong Kong ESG business Elevate

The size of the deal was not disclosed. EQT acquired a majority interest in the company through its global mid-market fund, which closed on EUR 1.05bn (USD 1.18bn) in 2013 and made investments in Europe and Asia. Greater China and Southeast Asia were the focus areas in Asia, with commitments in the EUR 40-100m range. Elevate's founders and management retained significant stakes

The company works with more than 450 corporates, industry coalitions, governments, and non-governmental organisations (NGOs) across 100 countries. It conducts over 20,000 assessments and audits every year, helping ensure supply chains meet required standards in terms of ESG compliance and sustainable sourcing.

EQT saw in Elevate the benefits of taking an "audit-plus" approach. In a traditional audit, an inspector works through a list of issues that require verification but doesn't resolve them. Elevate sends in consultants who seek to do this – for example, conducting surveys to establish the root cause of employee dissatisfaction, coming up with ways to address it, and assisting in execution.

The GP claims to have supported Elevate's evolution into an integrated service provider. The company continues to cover four main service areas – assessment, advisory, program management, and analytics – but it has expanded into new verticals, such as the food industry, and geographies. Digitalisation was also part of the strategy, with Elevate transforming into a tech-driven business.

"Under the partnership with EQT, not only did Elevate diversify its service portfolio and build up critical capabilities in advisory, program management and data analytics, we also established robust governance and formed a strong leadership team, positioning us well for the next growth phase with LRQA," said Ian Spaulding, co-founder and CEO of Elevate, in a statement.

LRQA, a provider of assurance services, including environmental conformity assessments, believes it and Elevate have complementary offerings in terms of product and geography. The company spun out from Lloyd's Register last year with support from Goldman Sachs Asset Management.

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• Topics
• Greater China
• Support services
• Industrials
• Trade sale
• Asia
• EQT Partners
• professional services
• ESG