EQT is considering introducing fees for institutional investors on co-investments, as rising allocations from wealthy individuals reduce its reliance on traditional LPs, according to a report by the Financial Times.
The Stockholm-listed manager has historically offered co-investments free to pensions, endowments and other core LPs. Chief Executive Per Franzén told analysts that the firm now sees scope to “monetise” elements of its co-investment pipeline as private wealth inflows increase. EQT generated €17bn of co-investment dealflow over the past year.
Franzén said the executive team and board view revenue generation from institutional co-investment allocations as a “huge growth opportunity”. The firm manages €267bn and has raised €1.9bn across its Nexus vehicles for individual investors since 2023. Those vehicles invest alongside EQT’s flagship private equity and infrastructure funds and pay fees on co-investments, unlike institutional LPs.
He added that EQT would continue to offer institutions “the most attractive” access to co-investment deals, adding that the firm is confident in its ability to balance the interests of both retail and institutional clients.
