Glossary and Definitions
AIF
Alternative investment fund
AUM
Assets Under Management (“AUM”) represent the total assets and commitments from fund investors based on which EQT AB Group is entitled to receive management fees. All of the Group’s AUM is fee-generating
Average AUM
The average balance of AUM for the period, calculated on a quarterly basis
CAGR
Compound Annual Growth Rate
Carried Interest
A share of profits that is received by the EQT AB Group through its holding in Special Limited Partners of EQT funds as variable consideration, fully dependent on the performance of the relevant EQT funds and such EQT funds’ underlying investments.
Carried Interest Participants
Participants entitled to carried interest in EQT funds through the Special Limited Partner (SLP)
CLO Platform
A CLO is an investment entity which buys several company loans and aggregates them into different groups which are then sold to different types of investors
Effective Management Fee Margin
Weighted average management fee margin, excluding structural and accounting impacts, including late fees, for all EQT Funds contributing to AUM in a specific period
EQT
Where used on its own, is an umbrella term and may refer interchangeably to the EQT AB Group, SEP Holdings Group and/or EQT funds, as the context requires
EQT AB Group or the Group
EQT AB and/or any one or more of its direct or indirect subsidiaries (excl. the EQT funds and their portfolio companies)
EQT AB or the Company
EQT AB (publ), reg. No. 556849-4180
EQT Network
The network of EQT advisors which supports the General Partners and/or the fund managers of EQT funds
EQT Partners
EQT Partners AB and its subsidiaries appointed as investment advisor (or sub advisors) to the General Partners and/or managers of EQT funds.
EQT funds
From time to time, investment vehicles or other arrangements and any of their respective predecessor, in each case managed by a member of the EQT AB Group and/or SEP Holdings Group, as the context requires
EQT Private Equity
As the context requires, one or more of the EQT funds investing under the Private Equity investment strategy or the team of EQT Partners Investment Advisory Professionals who advise the General Partners and/or managers of the EQT Private Equity funds.
EQT Infrastructure
As the context requires, one or more of the EQT funds investing under the Real Assets investment strategy or the team of EQT Partners Investment Advisory Professionals who advise the General Partners and/or managers of the EQT Infrastructure funds.
EQT Mid Market
As the context requires, one or more of the EQT funds investing under the Mid Market investment strategy or the team of EQT Partners Investment Advisory Professionals who advise the General Partners and/or managers of the EQT Mid Market funds (including EQT Greater China II, EQT Expansion Capital I and II funds).
EQT Exeter
As the context requires, one or more of the EQT funds investing under the Real Assets investment strategy or the team of EQT Partners Investment Advisory Professionals who advise the General Partners and/or managers of the EQT Exeter fund.
EQT Public Value
As the context requires, the EQT fund investing under the Public Value investment strategy or the team of EQT Partners Investment Advisory Professionals who advise the General Partners and/or managers of the EQT Public Value fund.
EQT Growth
As the context requires, the EQT fund investing under the Growth investment strategy or the team of EQT Partners Investment Advisory Professionals who advise the General Partners and/or managers of the EQT Growth fund.
EQT Ventures
As the context requires, one or more of the EQT funds investing under the Ventures investment strategy or the team of EQT Partners Investment Advisory Professionals who advise the General Partners and/or managers of the EQT Ventures funds
EQT Advisors
The group of individuals who are not directors or officers of any member of the EQT AB Group and who provide a pool of knowledge and experience to EQT on a consultancy basis
ESG
Environmental, social and governance
FTE
The number of full-time equivalent personnel on EQT AB Group’s payroll
Fund Investor
An investor in an EQT fund
Fund Manager
The entity appointed to act as alternative investment fund manager for an EQT fund
Future-proofing Companies
As used on this website, the term “future-proofing companies” (and other similar terms used herein) are references to the overall commitment of EQT funds to supporting the development of the portfolio companies under their ownership
EQT funds invest in portfolio companies with a desire to see those entities develop under EQT’s portfolio company corporate governance model, via the appointment of strong industrial boards who work with their management teams to determine, drive and execute value creation strategies; leveraging financial backing, experience and networks as appropriate.
This ongoing development process is monitored with the advice and assistance of EQT Partners.
General Partner
An entity directly or indirectly held by EQT AB acts as general partner of the limited partnerships constituting the EQT Fund
Gross MOIC
Total value of investments divided by total cost of investments
Industry AUM
Total industry assets under management
Investment Advisors
Employees within the EQT AB Group that provides investment advisory services to the fund managers of the EQT funds
LEI
Legal Entity Identifier
Limited Partner
Investors in EQT funds whose commitment and right to return is derived from the size of the investment
Lower-tier PFICs
Any subsidiaries or other entities in which the Company holds a direct or indirect equity interest, if the Company is a PFIC
Nasdaq Stockholm
The regulated market operated by Nasdaq Stockholm Aktiebolag
Net IRR
The aggregate annual compound internal rate of return based on actual invested amounts using daily cash flow, calculated after deducting: (i) management fee; (ii) “carried interest”; (iii) the value of any uplift arising in respect of the equity owned by a portfolio company’s management
and / or board of directors; (iv) transaction costs; and (v) any other fees or expenses paid by the relevant EQT fund or its investors (other than taxes borne or to be borne by investors, including as a result of an investor’s domicile). Computed from the launch of the first EQT fund, EQT I, in 1995 to 30 June 2019 and includes EQT funds raised prior to 2012 which are not managed by the EQT AB Group.
Partners
Employees within the EQT AB Group primarily with the title “Partner” (including a few former Partners depending on the context) who are also shareholders in the company
Partner
An individual partner at EQT Partners
PFIC
Passive foreign investment company
Realization (of investments)
Sale or write-off of investment made by an EQT fund
Selected EQT Funds
Currently active funds where initial fund commitments account for >5% of total fund commitments that are currently part of AUM. EQT Infrastructure II is the predecessor fund to EQT Infrastructure III, and is as such included in selected EQT funds for comparability reasons.
Special Limited Partner or SLP
A vehicle through which Carried Interest Investors indirectly invest into a fund structure and is entitled to receive carried interest
Start Date
A fund’s start date is the earlier of the first closed investment or the date when management fees are charged from fund investors
TROIKA
A part of EQT AB Group’s portfolio governance model. The TROIKA consists of the relevant portfolio company’s Chairperson (usually appointed from the EQT advisor network), the responsible investment advisory partner within EQT Partners and the relevant portfolio company’s CEO. Working closely together on an informal and transparent basis, the TROIKA works as a sparring partner to the CEO and keeps EQT well informed of the company performance.
Venture Growth
Refers to an investment strategy in between venture capital and growth equity, primarily investing into established but relatively early stage growth companies where leverage is sometimes used