EQT Mid-Market Credit closes at EUR 530 million
- EQT Mid-Market Credit Fund successfully closes above target fund size of EUR 500 million
- Fund is the latest addition to the EQT Credit investment platform
- Strong demand from both new investors and existing investors in other EQT Credit strategies
- Core investment focus is lending directly to medium-sized European businesses to support them with flexible, long-term capital
- Strong deployment since first close, with approximately 30% of the Fund already committed to five investments
EQT announces the successful closing of the EQT Mid-Market Credit Fund (“EQT Mid-Market Credit” or the “Fund”). The Fund closed after receiving commitments in excess of its EUR 500 million target and drew strong support from a wide range of high-quality international institutional investors, including pension funds, insurance companies and family offices.
EQT Mid-Market Credit is the latest addition to the EQT Credit platform, which invests across the full risk-reward spectrum through three strategies: senior debt (EQT Senior Debt), direct lending (EQT Mid-Market Credit) and credit opportunities (EQT Credit I and EQT Credit II).
The EQT Credit team, which acts as the Investment Advisor to the EQT Credit platform, was formed in 2008 and currently comprises 20 professionals with complementary expertise in structuring and debt capital markets. The team shares EQT’s overall industrial approach and uses the broader EQT organisation to perform thorough due diligence on each investment opportunity in order to assess the relevant risks and operational sustainability of the target company. This is achieved by working in close collaboration with EQT’s independent Industrial Advisors as well as leveraging knowledge from the broader strategic sector teams to enhance the due diligence process and to access potential investment opportunities.
The Fund seeks to provide flexible, long-term debt capital solutions to medium-sized European businesses, across a wide range of sectors. The Fund lends to both sponsor-owned businesses and privately-held companies, providing capital to support growth, acquisitions or refinancings.
Paul Johnson, Portfolio Manager at EQT Partners, Investment Advisor to EQT Mid-Market Credit, comments: “Since the initial close, EQT Mid-Market Credit has been an active investor in the European direct lending market, having committed approximately EUR160 million to five companies in the healthcare, industrial and TMT sectors. Borrowers appreciate the flexibility that the Fund can provide in tailoring the financing to meet the needs of the business.”
Andrew Konopelski, Head of EQT Credit and Partner at EQT Partners, comments: “When the first EQT Credit fund was launched in 2008, the vision was to have a suite of funds that could provide capital to businesses across the risk-return spectrum, and the closing of EQT Mid-Market Credit is another important milestone for EQT Credit. The demand for private debt in Europe continues to grow and we see an especially strong pipeline of credit investment opportunities in the mid-sized company segment.”
Andrew Konopelski, Head of EQT Credit and Partner at EQT Partners, +44 207 430 5510
Paul Johnson, Portfolio Manager at EQT Partners, +44 207 430 5520
Kerstin Danasten, EQT Press Contact, +46 8 506 55 334
EQT is a leading global private equity group with approximately EUR 29 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
About EQT Credit
The EQT Credit investment platform spans the full risk-reward spectrum and is currently investing three strategies: senior debt (EQT Senior Debt), direct lending (EQT Mid-Market Credit Fund) and credit opportunities (EQT Credit I and EQT Credit II funds).
EQT Senior Debt seeks investment opportunities in floating-rate loans and notes of strongly performing European companies. Senior Debt investments provide a regular interest income stream and high capital preservation. As a result, these investments provide an attractive diversification to a traditional fixed income portfolio.
The EQT Mid-Market Credit Fund seeks to provide flexible, long-term debt capital solutions to medium-sized European businesses, across a wide range of sectors. These businesses may be privately-owned corporates seeking alternative funding to grow or be the subject of private equity-led acquisitions or refinancings.
The EQT Credit Opportunities Funds typically seek medium-term investment opportunities in operationally-sound European companies, including the debt of companies that may be facing challenges created by excess leverage levels or the need for additional capital. The Funds invest in the secondary market as well as providing primary capital directly to companies that require new funding but are unable to access traditional sources of capital.
For further information, please visit www.eqt.se