Swedish investment juggernaut EQT has achieved an extraordinary milestone, surpassing its initial €20 billion target for the EQT X fund. The groundbreaking total, approximately 40% larger than its predecessor, solidifies EQT’s position as a dominant force in the investment landscape. The triumph comes as the firm sought a six-month fundraising extension from its initially planned August 2023 close, allowing limited partners more time in a challenging liquidity environment.
Suzanne Donohoe, Chief Commercial Officer at EQT, revealed in an interview, “People knew that our fundraise was going very well at that point,” emphasizing the fund’s robust momentum. The extension aimed to provide partners with ample time to navigate decisions amidst evolving market conditions.
The EQT X fund has already invested 30% to 35%, with strategic acquisitions such as Envirotainer AB and Dechra Pharmaceuticals Plc. Eric Liu, Partner and Co-Head of the Global Healthcare Sector Team at EQT, highlighted significant opportunities, especially in healthcare, which constitutes 40% of the firm’s focus, solidifying EQT as the dominant private equity entity in many European countries.
An impressive 70% of commitments for EQT X originated from existing investors, including pension and sovereign wealth funds. Notably, private wealth investors have increased their share of commitments, reflecting the fund’s widespread appeal.
EQT’s strategic move in 2023 with the launch of Nexus showcases the firm’s commitment to broadening its investor base, embracing retail investors, and diversifying fundraising efforts for enhanced liquidity. This aligns with a broader trend as private equity firms increasingly target wealthy individuals as an untapped capital pool, responding to institutional investors becoming more discerning amid slowing returns.
Suzanne Donohoe highlighted the current market segmentation, emphasizing the correlation between strong performance and the ability to generate substantial momentum in fundraising endeavors. EQT’s unparalleled success in securing €22 billion for the EQT X fund underscores its industry leadership and strategic prowess, setting a new standard for buyout funds.
