Sweden’s EQT raises €22bn for its largest-ever fund

Per Franzén

By Mark McSherry

Swedish investment firm EQT announced that it raised €22 billion in total commitments for its largest-ever private equity fund EQT X.

“The fundraise exceeded the target size of EUR 20 billion (USD 21.6 billion) and represents a near 40 percent increase on EQT IX, which closed at EUR 15.6 billion in April 2021,” said EQT.

“It also represents one of the largest private equity funds ever raised.

“The fund received commitments from a broad range of investors, including pension and sovereign wealth funds, asset managers, and the private wealth segment.

“The latter made up an increased share of the total commitments, on the back of EQT’s recent strategic drive to offer the segment increased access to EQT funds with the launch of EQT Nexus.

“Fund investors were based across the Americas, Asia-Pacific, the Middle East, Europe and the Nordics.”

EQT X is the latest fund in EQT’s private equity strategy.

“For thirty years, the strategy has invested in the Healthcare, Technology, Tech-enabled Services and Industrial Technology sectors in Europe and North America, and over that time it has delivered a realized gross multiple on invested capital of 2.7x,” said the firm.

“The fund has announced seven investments since June 2022, starting with the acquisition of Envirotainer, the globally leading provider of mission-critical transport services to the biopharma industry.

“Other investments include advanced medical components supplier Zeus, accounts receivable automation leader Billtrust, and animal pharmaceutical business Dechra Pharmaceuticals.”

Per Franzén, Head of Private Capital Europe & North America at EQT and Chairman of the EQT Private Equity Investment Committees, said: “We remain focused on backing and futureproofing companies in attractive and resilient sectors, such as healthcare and technology, and have proven our ability to perform and return capital across cycles.

“We continue to invest in our sector expertise, sharpening our ownership model and developing our value-creation toolbox.

“Our thematic investment strategy and strong local presence are competitive advantages when sourcing opportunities, not least in a slower deal-making environment.

“EQT X is off to a strong start, having already announced four take-privates while offering substantial co-invest opportunities. We look forward to continuing to partner with our clients.”

EQT Chief Commercial Officer Suzanne Donohoe said: “We would like to thank both our long-term and new clients for their support of EQT X.

“Around 70 percent of the commitments to the fund came from existing EQT IX investors, a testament to the long-term trust we have built together.

“We’re also grateful for the support from new clients, who recognized our 30-year track record of delivering strong and steady returns. We look forward to continuing to strengthen our partnerships for the next 30 years and beyond.”