EQT closes new Mid Market fund at EUR 1.1 billion
- The EQT Mid Market fund closes above target fund size of EUR 1 billion
- Strong commitment from existing investor base
- Primarily focused on middle market buyouts and growth equity investments in Northern Europe, Greater China and Southeast Asia
EQT, the leading private equity group in Northern Europe, is pleased to announce the recent closing of the EQT Mid Market fund. Interest for the new fund was strong, with 95% of the capital committed by existing EQT investors.
The fund is advised by a dedicated team of 35 investment advisory professionals based in Copenhagen, Frankfurt, Hong Kong, Shanghai, Singapore, Stockholm, Warsaw and Zurich. The team has cumulative experience from advising on more than 30 middle market transactions in prior EQT funds with an aggregated transaction value of over EUR 3.4 billion. The EQT Mid Market team is led by Jan Ståhlberg, one of the founders and Deputy Managing Partner of EQT Partners.
The EQT Mid Market fund is the latest addition to the EQT range of funds and investment strategies. The fund is backed by high-quality international institutional investors including pension funds, insurance companies and family offices. The investor base is also well diversified in terms of geography with 51% of the fund commitments being raised from institutional investors in the Nordic region, followed by 22% from the rest of Europe, 16% from North America and 11% from Asia.
The middle market opportunity
EQT believes many middle market businesses often lack the expertise needed to expand into new markets, the operational best practices needed to improve profitability and the governance frameworks required to become market leaders. Additionally, EQT believes many middle market businesses can benefit from internationalization, particularly by taking advantage of the increased trade linkages between Europe and Asia, and that there is a significant opportunity to transfer business models and best practices across these geographies.
The EQT Mid Market fund
The EQT Mid Market fund intends to invest in companies with strong market positions, solid growth platforms and ambitious owners and managers that can benefit from EQT’s industrial approach and robust platform. The fund will primarily focus on buyouts and growth equity investments. Deal flow is expected to primarily come from family- and entrepreneur owned businesses, corporate orphans and public-to-private transactions. The typical transaction value ranges between EUR 80 million and EUR 150 million in Northern Europe and between EUR 80 million and EUR 200 million in Greater China and Southeast Asia.
The fund will, like all other funds advised by EQT Partners, have a clear focus on supporting the development, improvement and growth in the portfolio companies. EQT believes that its global expertise in supporting business development and growth is often a decisive factor for many company owners when selecting EQT as partner or new owner.
So far, the EQT Mid Market fund has invested in five companies; (i) Avenso, a leading gallery network and online retailer for photographic art serving the contemporary photographic art market in Germany, (ii) swiss smile, the leading quality dental chain in Switzerland, (iii) fiber based data communication provider IP-Only in Sweden, (iv) BackWerk, Germany’s leading franchise system in the self-service bakery and quick service food market and (v) China F&B, operating two renowned international restaurant chains, Dairy Queen and Papa John’s Pizza in China.
Jan Ståhlberg, Head of the EQT Mid Market team and Deputy Managing Partner of EQT Partners, commented: “EQT funds have, since inception 20 years ago, focused on supporting the implementation of growth initiatives in more than 120 portfolio companies using a clearly defined corporate governance model. It is the intent that the focus will continue to build on that experience, making sure that management in companies invested in have access to the best assistance and support. The overall goal is to make the companies stronger, more sustainable and well-positioned to continually prosper after EQT’s ownership.”
Conni Jonsson, Managing Partner of EQT, commented: “It is a fantastic sign of trust that 95% of the capital comes from investors in other EQT funds. We believe that with its access to EQT’s global industrial network and the investment advisory team’s extensive experience and local networks in both Europe and Asia, the EQT Mid Market fund is well-positioned with respect to the development of attractive companies in the middle market segment in Europe and Asia.”
Jan Ståhlberg, Head of the EQT Mid Market team and Deputy Managing Partner, EQT Partners, Investment Advisor to the EQT Mid Market fund +46 8 506 55 307
EQT Press Department +46 8 506 55 356
EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the US with total sales of more than EUR 25 billion and over 550,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
For further information please visit www.eqt.se
 “EQT” as used herein means EQT Holdings BV and/or the general partners and managers of the various EQT branded funds (as the context requires).