EQT launches EQT Active Core Infrastructure
EQT launches EQT Active Core Infrastructure, a longer-hold fund with a focus on downside protection, applying EQT’s active ownership playbook to core infrastructure companies
EQT Active Core Infrastructure will target companies that provide essential services to society and offer a distinct and attractive risk-return proposition based on stable cash yield generation, inflation protection, low volatility, and pursuit of longer-term value creation opportunities, while actively contributing to the Fund’s sustainability objectives
The Fund has a target size of EUR 5bn and will leverage the expertise and deal sourcing capabilities of the EQT Infrastructure platform’s sector teams, local market access and proven value creation toolbox
The launch of EQT Active Core Infrastructure (the “Fund”) builds on 15 years of continuous refinement of an active ownership playbook and future-proofing of strong infrastructure companies. Primarily focused on Europe and North America, the Fund will target core infrastructure companies that provide essential services to society and offer a distinct and attractive risk-return proposition based on stable cash yield generation, inflation protection, low volatility, and pursuit of longer-term value creation opportunities.
The Fund’s longer-hold ownership horizon of 15 to 25 years and focus on core infrastructure companies at the lower end of the risk-return spectrum aim to unlock investment opportunities that historically have fallen outside of the investment scope of EQT’s existing infrastructure strategy. Deeply embedded in EQT’s Real Assets platform, the Fund will apply EQT’s active ownership approach and value creation playbook, leveraging on the infrastructure platform sector teams’ sourcing capabilities, industry insights, and local market access.
EQT Active Core Infrastructure’s deal selection will consider a sustainability framework designed to deliver positive impact and mitigate the long-term risk of business model disruption in its portfolio. Investment opportunities will be sourced across three sustainability themes; (i) climate & environment; (ii) people & society; and (iii) sustainable growth & equality. Within these themes, the Fund will seek to invest in companies that actively support at least one of its six sustainability objectives; (i) energy transition & decarbonization; (ii) circular economy & resource efficiency; (iii) equitable digital opportunities; (iv) basic utility & social services for all; (v) sustainable global trade; and (vi) accessible mobility solutions.
The launch of EQT Active Core reinforces EQT’s commitment to sustainability, as the first private markets firm globally to formalize its science based targets (“SBTs”) through the Science Based Targets initiative. The Fund will develop tailored decarbonization plans for each investment and set ambitious greenhouse gas emission (GHG) reduction targets for its portfolio companies’ operations using the SBTs. EQT Active Core Infrastructure's longer-term scope and active ownership approach mean that the implementation and fulfillment of portfolio companies’ SBTs are expected to be completed during the Fund's tenure.
The EQT Active Core Infrastructure fund will be advised by a dedicated team of approximately 15 Investment Advisory Professionals led by a Partner group, including Daniel Pérez, based in Stockholm, Fabian Gröne, based in Munich, and Alex Greenbaum, who joined EQT in New York on 1 March 2022 from GIC, where he was Head of Infrastructure, North America.
Lennart Blecher, Head of EQT Real Assets and Deputy Managing Partner, said, “In recent years, we have seen a growing portion of attractive investment opportunities in core infrastructure companies that we have not been able to pursue with EQT’s existing infrastructure strategy. Building on our global platform and expertise, we believe EQT Active Core Infrastructure offers a unique value proposition that will further increase the relevance and importance of EQT as a partner for the fund investors, portfolio companies and the societies we operate in.”
A distinguished Investment Advisory Committee, comprised of Francesco Starace (CEO and General Manager, Enel S.p.A), Joe Kaeser (former President and CEO, Siemens AG), Carol Browner (former Director at the White House Office of Energy and Climate Change Policy), will support the EQT Active Core Infrastructure Advisory Team in its investment recommendations.
The EQT Active Core Infrastructure will have a target fund size of EUR 5 billion. No hard cap has been set to date and the actual fund size is dependent on the outcome of the fundraising process and may ultimately be higher or lower than the target fund size.
No assurances can be given that EQT Active Core Infrastructure’s investment objectives will be achieved or as to the extent of returns that investors will receive in respect of any investment they make in EQT Active Core Infrastructure.
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