EQT raises €22 billion for venture capital operations
A Stockholm-based venture capital group is eyeing an IPO revival by raising the largest fund in its history.
European venture capital group EQT has raised €22 billion for the largest buyout fund in its 30-year history. As such, it follows in the footsteps of other groups that have managed to raise significant amounts of money at a time when something many other companies struggle with.
It took more than two years to assemble the fund, which had an initial target of 20 billion euros and was 40% more than the previous one of 15,600 euros, the Stockholm Stock Exchange-listed manager said on Tuesday. million euros, closed three years ago.
The fundraising success is the latest demonstration of investors putting more money into more established acquisition teams. EQT’s rivals, including CVC Capital Partners and Warburg Pincus, raised record funding last year while many smaller or relatively new groups struggled.
In statements to Financial Times Before the deal closed, Per Franzen, EQT’s head of private equity, predicted “increased trading activity in private markets” as other private equity groups put their most profitable companies up for sale to raise cash and spur new investment. facilities.
He added that investor sentiment that central banks have decided to pause interest rate hikes has led to a pick-up in initial public offering activity.
“There are signs that IPO markets are reviving in Europe and the US,” Franzen said. According to his statements, EQT is preparing large investments to list on the exchange if market conditions remain suitable.
EQT has always invested in mid-sized and large companies in Europe and North America in the healthcare, technology and services sectors.
The group said a “growing proportion” of investors in its funds come from wealthy individuals as the group seeks to diversify the types of investors investing in its funds.
In total, private equity channels made up about 10% of the fund, highlighting the growing role they are playing in the venture capital sector.
Historically, companies have primarily sourced investors from large institutional investors such as pension plans and sovereign wealth funds.
The major fundraising is the latest boost for the company, which has rapidly increased the amount of assets it manages since going public in 2019.
In recent years, EQT has closed deals to acquire Barings Private Equity Asia and US property investor Exeter Property Group.
This month, EQT also made an offer to acquire French digital music company Believe, using funds from its latest acquisition fund.
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