STOCKHOLM, April 16, 2025 /PRNewswire/ -- A global platform equipped to navigate uncertain markets "The world is once again facing significant economic and geopolitical uncertainty. After a strong first quarter in terms of fundraising, exits, and investments, we are now navigating a new market environment. Our portfolio is thematically invested across sectors such as healthcare, software, and essential infrastructure with limited direct exposure to tariffs. As we look ahead, exit activity will slow down, but periods of disruption often bring compelling investment opportunities. With more than EUR 50 billion of dry powder1, we are well-positioned to navigate uncertainty to the benefit of our clients and shareholders. Over our 30 year history, we have managed volatility and multiple cycles, emerging stronger each time."
Christian Sinding, CEO and Managing Partner
Highlights for the period Jan-Mar 2025 (Jan-Mar 2024)
Strategic
EQT introduced EQT Nexus Infrastructure, its latest evergreen strategy available for individual and institutional investors in EMEA, APAC and Canada. The product offers exposure to EQT's infrastructure strategies and direct investments in infrastructure companies in EQT's portfolio. EQT now has three products available for private wealth
EQT expects to launch a U.S. evergreen product during the summer with two global distributors; one private bank and one wirehouse. The product will invest across the Private Capital platform. Furthermore, preparations continue for a U.S. evergreen product focused on Infrastructure
Fundraising
FAUM increased to €142bn (€132bn) and Total AUM amounted to €273bn (€242bn). Gross inflows amounted to €12bn, primarily driven by closed out commitments from BPEA IX and EQT Infrastructure VI
EQT Infrastructure VI closed at €21.5bn in total commitments, including €21.3bn in fee-generating commitments, exceeding its €20bn target and hitting its €21bn hard-cap. The final size represents a 35% increase on the fund's predecessor, owing to strong support from both existing and new investors
BPEA Private Equity Fund IX was activated on 1 March 2025. As of 16 April 2025, it has received commitments of more than $10bn. The fund will hold its first close during April and is expected to reach its target fund size of $12.5bn during the summer. Fundraising is expected to materially conclude during the second half of the year. As previously communicated, the hard-cap for investor commitments for BPEA IX is $14.5bn
Investment performance
All Key funds continued to perform On or Above plan. Key fund valuations increased by on average 1% during the quarter. The performance of more recent vintages in Private Capital was particularly strong, as recent investments continued to perform ahead of plan. Strong underlying performance across the portfolio was partly offset by lower share prices for listed holdings in EQT VIII, EQT Infrastructure IV, and BPEA VIII; specific pockets of underperformance; and negative FX effects
EQT's portfolio companies have limited direct exposure to the recently announced tariffs. The EQT funds in Private Capital are primarily invested in sectors such as Healthcare, Software, and Services, with no or limited exposure to manufacturing or trading of physical goods. However, a deterioration in global GDP growth, inflation, or constrained financial markets, as well as factors such as changes in supply chains and trade patterns, would likely have secondary effects on the portfolio companies
The recent deterioration in market conditions and lower public market valuation references may negatively impact the EQT fund valuations in Q2
Investment activity
Total investments by the EQT funds amounted to €4bn. EQT was particularly active in our key sub-sectors such as digital infrastructure, energy transition, education, healthcare, software, and logistics real estate. In addition, EQT provided co-investment opportunities of almost €4bn for its clients
Exit activity
EQT announced total gross fund exits of €4bn, more than doubling the more muted exit volumes in Q1 2024
In March, EQT Private Capital Asia closed its largest exit to-date as EQT, as part of a global consortium of premier institutional investors, completed the acquisition of Nord Anglia Education from BPEA VI and co-investors. Through the investment from BPEA VIII, EQT will continue to serve as a long-term partner to Nord Anglia, creating further value creation opportunities for its clients
Public market exits represented approximately a third of total exit volumes during Q1, with sell-downs in EQT VIII's listed holdings Galderma, Azelis, and Waystar; and EQT Infrastructure III and VI's holdings in Kodiak
Having executed on its exit agenda throughout the first quarter, EQT expects a material slow down in exit activity given the recent deterioration in market conditions and elevated uncertainty across global markets
People
The Board of Directors appointed Per Franzén as CEO and Managing Partner, effective as of the Annual Shareholders' Meeting on 27 May 2025. Christian Sinding will become an Institutional Partner and in this role, he will Chair the EQT Council. He will also continue to Chair the Global Investment Forum and remain a member of several Investment Committees
Bert Janssens and Eric Liu were appointed Co-Heads of EQT Private Capital Europe & North America
The Nomination Committee has proposed Jacob Wallenberg Jr as a new Board member of EQT. The proposal is subject to approval at EQT's Annual Shareholders' Meeting on 27 May 2025
The number of full-time equivalent employees (FTE) amounted to 1,893 (1,802). As of 2025, EQT will no longer report FTE+ (FTE including on-site consultants). In line with previous reporting, costs of on-site consultants are reported as Other operating expenses
Other
The Board of Directors resolved to repurchase a maximum of approximately 4.9 million own ordinary shares, corresponding to 0.4% of EQT's share capital. As previously announced, EQT intends to execute share buyback programs twice a year to offset - over time - the dilution impact from shares delivered to EQT's employees under its Share and Option incentive programs. EQT repurchased approximately 1.5 million shares during the first quarter
At the end of the period, the number of portfolio companies with validated science-based targets amounted to 54, representing more than 65% of invested capital. In addition, 15 companies are in the process of setting targets
EQT is considering further diversifying its funding base. EQT currently has three bonds outstanding with a total nominal value of €2bn, maturing in 2028, 2031 and 2032, respectively, as well as an undrawn RCF of €1.5bn. EQT is rated A- by both Fitch and S&P
On 22 May 2025, EQT will host a capital markets event in London focused on EQT's active ownership model and approach to value creation, featuring insights from portfolio company CEOs, Chairpersons, Industrial Advisors, and EQT's leadership team
Events after the reporting period
EQT Infrastructure VI announced the acquisition of Eagle Railcar Services, and EQT X announced the acquisition of WTS. Both investments were agreed and therefore accounted for in Q1 2025
EQT VIII and EQT IX announced the partial sale of IFS
EQT VIII announced the sale of Karo Healthcare
Investment levels in EQT Key funds as of 16 April 2025 were 50-55% in EQT X, 45-50% in EQT Infrastructure VI and 0-5% in BPEA IX
1) Undrawn commitments in funds in investment mode (based on closed transactions)
Presentation of EQT AB's Q1 Announcement 2025
Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CEST.
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 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.
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.
Rickard Buch, Head of Corporate Communications, +46 72 989 09 11 EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
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 persons set out above, at 07:00 CEST on 16 April 2025.
