EQT AB (publ) Q1 Announcement 2023
Thematic opportunities in volatile markets
“Despite current volatile market conditions, the long-term growth prospects for private markets remain strong. Investors are increasingly recognizing the benefits of private markets: strong and resilient returns, lower volatility than public markets, and value creation through active ownership. At EQT, during the first quarter of the year, we continued to leverage our global scale and executed on thematic opportunities.”
CEO and Managing Partner
Highlights for the period Jan-Mar 2023 (Jan-Mar 2022)
- EQT continued to make preparations for semi-liquid fund structures to accommodate private wealth investors, and expects to launch certain products during the year, with the expectation of first launching a product aimed at making certain strategies within EQT Private Capital and EQT Infrastructure available to private wealth investors
- EQT continued the work to capture synergies with BPEA, with the main integration areas substantially complete, including alignment of investment teams and processes
- Fee-generating assets under management (FAUM) increased to EUR 119bn (EUR 77bn). Total AUM was EUR 216bn
- EQT set the hard cap for EQT Infrastructure VI at EUR 21bn. The fund, which has a target size of EUR 20bn, was activated in late December 2022. As of 31 March 2023, the fund had fee-generating commitments from early closings of EUR 5.9bn. The fund is expected to hold its first close in H1 2023, with a majority of fundraising expected to be concluded in 2023
- Fundraising continued for EQT X with fee-generating commitments of EUR 17.2bn as of 31 March 2023. The target fund size is EUR 20bn, and fundraising is expected to be materially completed during the summer
- Fundraising continued for EQT Future, EQT Exeter US Industrial Value VI, EQT Exeter Multifamily Value II, EQT Exeter EU Industrial Core-Plus II and EQT Active Core Infrastructure
- Total investments by the EQT funds in the quarter amounted to EUR 5bn (EUR 3bn)
- Investments during the quarter include Radius Global Infrastructure and Tion Renewables (EQT Active Core Infrastructure), Lazer Logistics and SK Shieldus (EQT Infrastructure VI), IntegrityNext and GotPhoto (EQT Growth) and the acquisition of va-Q-tec by Envirotainer (EQT X)
- Total gross fund exits in the quarter amounted to EUR 1bn (EUR 2bn)
- Signed exits include Blume (EQT Infrastructure II and EQT Infrastructure III), VBill (EQT Mid Market Asia III) and a partial sell-down in Coforge (BPEA VII)
- All key funds continued to perform On plan or Above plan
- During the period, fund valuations remained resilient, underpinned by continued strong underlying performance in the portfolio companies, as well as supportive public market valuation benchmarks
People and future-proofing
- The number of full-time equivalent employees and on-site consultants (FTE+) amounted to 1,792 (1,319), of which 1,687 (1,223) were FTEs
- Suzanne Donohoe joined EQT in January as Chief Commercial Officer (“CXO”) to lead a newly-formed platform to drive EQT’s external commercial activities. In addition to Capital Raising & Client Relations, the new platform “EQT-Ext” includes EQT’s Sustainability, Business Development, and Communications efforts
- EQT strengthened its commitment to South Korea with the opening of an office in Seoul
- As of the end of the first quarter, ten portfolio companies had validated their science-based targets, and additionally 33 had formally engaged with the Science Based Targets initiative to set their own science-based targets
Events after the reporting period
- Investment levels in EQT key funds as of 20 April 2023, were 10-15% in EQT X, 10-15% in EQT Infrastructure VI and 15-20% in BPEA VIII
Presentation of EQT AB’s Q1 Announcement 2023
Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CEST.
The presentation and a link to follow the webcast and conference call live can be found here and a recording will be available afterwards.
To participate by phone, please register here. You will then receive your personal dial-in details, to be able to ask questions during the Q&A.
Information on EQT AB’s financial reporting
The EQT AB Group has a long-term business model founded on a promise to its fund investors to invest capital, drive value creation and create consistent attractive returns over a 5 to 10-year horizon. The Group’s financial model is primarily affected by the size of its fee-generating assets under management, the performance of the EQT funds and its ability to recruit and retain top talent.
The Group operates in a market driven by long-term trends and thus believes quarterly financial statements are less relevant for investors. However, in order to provide the market with relevant and suitable information about the Group's development, EQT publishes quarterly announcements with key operating numbers that are relevant for the business performance (taking Nasdaq's guidance note for preparing interim management statements into consideration). In addition, a half-year report and a year-end report including financial statements and further information relevant for investors is published. Finally, EQT also publishes an annual report including sustainability reporting.
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Shareholder Relations, email@example.com
Rickard Buch, Managing Director, Communications, +46 72 989 09 11
EQT Press Office, firstname.lastname@example.org, +46 8 506 55 334
This is information that EQT AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CEST on 20 April 2023.