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EQT flagship PE fund raises record $36.5bn

By Jessica Penny
3 minute read

In what has become the private equity firm’s largest fundraise to date, its flagship fund has exceeded expectations with total commitments surpassing $33 billion.

EQT has announced that private equity fund EQT X raised €22 billion (AU$36.7 billion) in total commitments – of which 36 billion is fee-generating assets under management – at the time of its final close.

The fundraise exceeded its target size of $33 billion and represents almost a 40 per cent increase on EQT IX, which closed at €15.6 billion in April 2021.

EQT X is the latest fund in EQT’s private equity strategy, which focuses on healthcare, technology, tech-enabled services, and industrial technology sectors in Europe and North America.

According to the firm, EQT received commitments from a range of investors, including pension and sovereign wealth funds, asset managers, and the private wealth segment.

“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,” commented Per Franzén, chairman of the EQT Private Equity investment committees.

EQT X has announced seven investments since June 2022, starting with the acquisition of Envirotainer, a provider of temperature-controlled air cargo containers.

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

“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,” Franzén added.

According to EQT chief commercial officer Suzanne Donohoe, some 70 per cent of fund commitments came from existing EQT IX investors.

“We’re also grateful for the support from new clients, who recognised 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,” Donohoe added.

In September, EQT announced the Australian launch of EQT Nexus – an open-ended fund that gives Australian wholesale investors access to the same portfolio and deal flow of EQT’s institutional investors.

EQT Nexus invests in a range of the firm’s funds with a focus on its flagship private equity and infrastructure strategies.

At the time, EQT said that the local launch of the fund, which followed its initial launch in the Nordics in May, reflected its focus on Australia as a “fast-growing sophisticated investor market”.