EQT has held a first and final close of its eighth equity investment strategy fund, EQT VIII, at its hard cap of EUR 10.75 billion. The fund officially launched in September 2017.
Investor demand from both existing and new investors was strong with approximately 70 per cent of the commitments to EQT VIII made by investors in the predecessor Equity fund, EQT VII.
“The successful fundraising of EQT VIII confirms the support for EQT’s investment and ownership approach. We are extremely proud to have earned investors’ trust and are fully committed to using EQT’s experience to find solid businesses with transformational potential. EQT seeks to create superior and sustainable value by improving companies with the support of EQT’s superb Industrial Network and the investment advisory teams at EQT Partners,” says Christian Sinding, Head of the EQT Equity investment advisory team and Deputy Managing Partner at EQT Partners.
EQT VIII will continue the investment strategy of the previous EQT Equity funds. The Equity funds have a strong track record of “future-proofing” companies, on average their portfolio companies increased sales by 10 per cent and earnings by 13 per cent annually during such funds’ ownership. The fund will be deployed into high-quality companies with strong development potential using the EQT value creation toolbox, global platform, digitalisation experience and proven governance model to drive performance. Through a thematic and sector-based approach, and by being local with locals, EQT intends to source unique investment opportunities in EQT VIII’s target markets. Investment opportunities will be sought primarily in Northern Europe, focusing on three core sectors, Healthcare, TMT and Services, as well as selectively investing in Industrial Technology and Consumer Goods.
When deploying the fund, EQT VIII will utilise the expertise of the Equity investment advisory team at EQT Partners, as well as the specialists from EQT’s independent Industrial Network.
Thomas von Koch, CEO and Managing Partner at EQT Partners, continues: “EQT VIII marks yet another milestone in our long-term strategy, manifesting EQT’s position as a leading global investment firm. With EQT’s vision of becoming the most reputable investor and owner, our strategy is to make EQT VIII the best possible home for companies poised for growth, as well as be a responsible corporate citizen in the societies where we operate.”
The fundraising was led by the in-house Investor Relations team within EQT Partners. Jussi Saarinen, Partner and Head of Investor Relations, says: “We are humbled by the confidence that the investors have in EQT and very pleased with the high quality of the fund’s investor base.”
EQT VIII is backed by a global blue-chip investor base including, among others, AP2, AP6, Ardian, Argentum, CNP Assurances, Daido Life Insurance Company, The Dai-ichi Life Insurance Company, Danske Bank Wealth Management, Elo, Fubon Life Insurance Company, GIC, GoldPoint Partners, HarbourVest Partners, Harel Insurance, Ilmarinen, Keva, The Andrew W. Mellon Foundation, Nan Shan Life Insurance Company, The New York City Retirement Systems, Northwestern Mutual Life Insurance, P+, Partners Group, PFA Pension, Sampension, Signal Iduna, Teacher Retirement System of Texas, Teachers’ Retirement System of the State of Illinois, TryghedsGruppen, Universities Superannuation Scheme and Varma.
