Swedish investment firm EQT has sought to reassure institutional investors that it does not plan to charge fees on co-investments following comments by Chief Executive Per Franzen that raised concerns among clients, according to a report by Bloomberg.
Franzen told analysts this week that the firm had created €17bn ($19.8bn) of co-investment opportunities over the past 12 months and said the growth of EQT’s wealth and retail client base created “opportunities to monetise” its co-investment deal flow. Co-investments have traditionally been offered free of charge to institutional investors such as pension funds and endowments.
Following the remarks, EQT executives reportedly held calls with investors to clarify that the comments had been taken out of context and that the firm does not intend to introduce fees for institutional co-investments. EQT’s institutional clients include the New Jersey Division of Investment, CalPERS and the Regents of the University of California. The discussions come as EQT prepares to raise a €23bn flagship fund, largely from institutional capital.
