Building a world leader in active ownership strategies
"Throughout the first quarter, we have continued to execute on our strategic agenda, further strengthening EQT's ability to generate returns for our clients and make a positive impact at scale. By joining forces with Baring Private Equity Asia (BPEA), we are building a true global leader in active ownership strategies. Moreover, the first three months of the year have also been characterized by active fundraising, continued investment and exit activity and resilient fund valuations. Nevertheless, the quarter is overshadowed by
CEO and Managing Partner
Highlights for the period Jan-
Strategic
- EQT announced the combination with Baring Private Equity Asia (BPEA), creating a scaled platform in
Asia . The transaction is expected to close in Q4 2022 - Launch of EQT Active Core Infrastructure - a longer-hold fund targeting core infrastructure companies that provide essential services to society
-
The acquisition of
Life Sciences Partners (LSP) closed on28 February 2022 , creating a new business line, EQT Life Sciences Bear Logi , a value-add logistics team focused on the Japanese and Korean markets, joined EQT Exeter to further strengthen EQT's footprint inAsia . The transaction closed on27 January 2022
Fundraising
- AUM increased to
EUR 77bn , of whichEUR 2.4bn relates to LSP's AUM per31 March 2022 - Fundraising continued for EQT Growth, EQT Future and various funds within the business line EQT Exeter, including EQT Exeter US Industrial Core-Plus IV
- Fundraising was initiated for EQT X, EQT Ventures III, EQT Active Core Infrastructure and EQT Exeter US Industrial Value VI
Investment activity
- Total investments by the EQT funds in the quarter amounted to
EUR 3bn -
Investments during the quarter include
Recipharm add-ons Arranta Bio and Vibalogics (EQT IX), InstaVolt andStockland Retirement Living (EQT Infrastructure V), SNFL and IFG (EQT Future) and Ardoq (EQT Growth) -
Investment level in key funds as of
31 March 2022 , excluding events after the reporting period:- EQT IX: 75-80%
- EQT Infrastructure V: 70-75%
Exit activity
- Total gross fund exits announced in the quarter amounted to
EUR 2bn -
Signed exits include Forsta (EQT Mid Market US), Elevate (EQT Mid Market), Touhula (EQT Mid Market) and
IFS andWorkWave (EQT VIII)
Value creation
EQT Infrastructure III ,EQT VII and EQT VIII continued to develop "Above plan"- EQT Infrastructure II, EQT Infrastructure IV, EQT Infrastructure V and EQT IX continued "On plan"
People & Sustainability
- The number of full-time equivalent employees and on-site consultants (FTE+) increased by 159 during the quarter and amounted to 1,319 (752), of which 1,223 (692) were FTEs. LSP and
Bear Logi accounted for 56 FTE+ as of31 March 2022 - Bahare Haghshenas, Global Head of Sustainable Transformation, joined the Executive Committee
-
EQT Future announced three new Mission Board members:
Ho Ching , recently retired CEO ofTemasek ;Naina Lal Kidwai , former Country Head of HSBC India; andSvein Tore Holsether , President and CEO ofYara International ; and an Impact Director,Hedda Pahlson-Moller , Co-founder and CEO of TIIME.org -
EQT hired
Christina Drews as new COO, to strengthen the strategic development of EQT's operating platform.Christina Drews will join EQT and the Executive Committee in June EQT AB established a Sustainability Committee, marking the first Board-level commitment to sustainability in the private markets industry
Other
- EQT priced a total of
EUR 1.5bn in sustainability-linked bonds; aEUR 750m sustainability-linked bond maturing in 2028 and aEUR 750m sustainability-linked bond maturing in 2032. EQT intends to use the net proceeds of the bonds, together with the issue of ordinary shares, to fund the consideration and transaction expenses in connection with the combination with BPEA EQT AB's long-term issuer credit rating has been confirmed byFitch Ratings Ltd. to be A- with a negative outlook as of21 March 2022
Events after the reporting period
- Investment level in key funds as of
26 April 2022 , were 75-80% in EQT IX and 70-75% in EQT Infrastructure V -
EQT set the hard cap for EQT X at
EUR 21.5bn -
EQT has agreed with its RCF lenders to increase the size of its existing RCF by
EUR 500m toEUR 1,500m - EQT committed EQT's portfolio companies to achieving net zero by 2040, ten years faster than required by climate science
Presentation of
Financial analysts and media are invited to participate in a conference call, including a presentation at
The presentation and a link to follow the webcast and conference call live can be found here and a recording will be available afterwards.
To participate by phone, please use the following dial-in details below, at least 10 minutes in advance.
Confirmation Code: 17149104
Information on
The Group operates in a market driven by long-term trends and thus believes quarterly financial statements are less relevant for investors. However, in order to provide the market with relevant and suitable information about the Group's development, EQT publishes quarterly announcements with key operating numbers that are relevant for the business performance (taking Nasdaq's guidance note for preparing interim management statements into consideration). In addition, a half-year report and a year-end report including financial statements and further information relevant for investors is published. Finally, EQT also publishes an annual report including sustainability reporting.
Contact
EQT Shareholder Relations, shareholderrelations@eqtpartners.com
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
This is information that
About EQT
EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. EQT has investment strategies covering all phases of a business' development, from start-up to maturity. EQT today has
With its roots in the Wallenberg family's entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.
More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram
https://news.cision.com/eqt/r/eqt-ab--publ--q1-announcement-2022,c3552900
https://mb.cision.com/Main/87/3552900/1568845.pdf
https://news.cision.com/eqt/i/eqt,c3041677
(c) 2022 Cision. All rights reserved., source