Changed ownership in advisory company EQT Partners
Partners of EQT Partners have agreed with Investor AB to acquire 36% of the shares in the advisory company EQT Partners AB for SEK 290 million (€ 31.2 million). The transaction means that Partners of EQT Partners will increase their ownership from the present 33% to 69% and that Investor will remain as owner of 31% of the shares. The transaction is subject to approval by Investor's Annual General Meeting, to be held on 27 March 2007.
EQT Partners had a turnover of SEK 348 million in 2006, reported earnings after tax of SEK 33 million and has more than 120 employees.
EQT Partners advises 11 funds, with managed capital of over €10.5 billion. The change in ownership of EQT Partners AB will not affect Investor’s agreements with these funds. Investor will remain as the largest investor and sponsor of the funds with unchanged financial conditions.
”The change in ownership strengthens our platform for long-term growth and development. In addition, EQT Partners’ independence is made clearer. We see a similar trend in the rest of the private equity industry, where it is normal for partners to have a majority shareholding in the advisory company. At the same time it is important to emphasise that the change only applies to the advisory company. Other relations with Investor will remain unchanged, including the industrial network and Investor’s investments in EQT’s funds”, comments Conni Jonsson, Managing Partner of EQT Partners.
”The proposed deal is a natural step in EQT Partner’s development and puts the advisory company in a good position to build its business further. We are confident that our existing and future investments in EQT’s funds will continue to generate attractive returns,” commented Investor President and CEO Börje Ekholm in a statement.
Investor was involved in starting EQT Partners AB in 1994, and since then has been the largest investor in all the funds. As EQT’s funds have grown in size, Investor’s holdings in the funds have decreased. In the European based funds, Investor’s share has fallen from a high of 32% in EQT III to 12% in the latest fund EQT V. The other 88% of the investors in EQT V come mainly from the Nordic area (30%), Europe (30%), North America (25%) and other parts of the world (15%).