Swedish private equity giant EQT is gearing up for a series of acquisitions, anticipating a wave of consolidation in the $10tn private capital industry as smaller firms or those facing succession issues look to merge with larger players, according to a report by the Financial Times.
The report quotes EQT CEO Christian Sinding as revealing in an interview that the Stockholm-based group is exploring the purchase of specialised private investment firms with potential targets including secondaries firms, growth-focused investment groups, and niche players in sectors such as healthcare.
“There are geographies and capabilities we still lack in growth investments and private equity,” Sinding said. “If we found a top-tier healthcare growth business in the United States, that could be a fit for us.”
Sinding also highlighted the importance of adding capabilities in secondaries, noting that it would strengthen EQT’s offerings at both the fund and portfolio levels. Other acquisition interests include asset managers or teams focused on digital infrastructure, such as data centres, and investments aligned with the transition from carbon-heavy industries.
These acquisitions would be strategic complements to EQT’s current portfolio, although no immediate deals are planned. Since going public in Stockholm in 2019, EQT has strategically used its $36bn market capitalisation to support acquisitions. This approach has expanded its assets under management more than fourfold to €246bn, through deals such as the €6.8bn acquisition of Barings Private Equity Asia in 2022, establishing a significant presence in Asia, and Exeter Property Group in 2021, specialising in industrial warehouses.
Other major private equity firms, such as TPG and CVC, have taken similar steps, listing shares to enable growth through diversification, which has bolstered their asset totals. According to Sinding, private equity firms now face a moment of strategic reckoning as institutional investors prioritise a smaller number of firms with proven, scalable capabilities.
“There are powerful market forces at work,” Sinding said. “If you lack a succession plan, distinct advantages, or scale, investors may bypass you. Some firms will adapt, while others may exit the market.”
Unlike peers such as Apollo Global, EQT has avoided aggressive moves into credit investments, having exited its debt platform in 2020. Sinding argues that private equity remains a high-growth area as companies opt to stay private and partner with equity firms rather than go public.
Sinding envisions EQT potentially handling buyouts between $30bn and $50bn as midsized or family-owned companies remain private, positioning for global growth while partnering with EQT.
“Pension funds, sovereign wealth funds, and other institutions remain under-invested in private capital,” he added. “With private wealth in the mix, there’s an immense resource for us to tap into.”
