Business

EQT Closes Its Sixth Fund Raising $23.26 Billion

EQT, one of the world’s largest private equity investors with $291.04 billion in assets, has closed its flagship infrastructure fund, EQT Infrastructure VI on $23.26 billion in total commitments, including $23.05 billion in fee-generating assets under management (AUM).

EQT Infrastructure VI received commitments from a diversified, global group of institutional investors, including pension funds, sovereign wealth funds, asset managers and insurance companies. The private wealth segment represented an increased share compared to the predecessor vehicle. Fund investors were based across the Americas, Asia Pacific, Europe, the Middle East and the Nordics.

The Fund is 35% larger than its predecessor which closed on $16.99 billion in November 2021. EQT Infrastructure VI invests in infrastructure companies that provide essential services to society, have a stable or growing underlying demand, predictable cash flows, and an asset-based, contracted and well-protected business model. It pursues attractive investment themes such as digital infrastructure; generating, storing, and distributing energy; decarbonisation and electrification of industrial processes and transport; resource efficiency and circularity; and social infrastructure.

Masoud Homayoun, Head of Infrastructure at EQT, said that EQT Infrastructure VI has had a great start with 12 highly thematic investments closed or signed.

EQT’s sector teams were continuing to deliver on a healthy investment pipeline and they were excited by the large opportunity set underpinned by global, long-term trends such as the transition to a decarbonised and circular economy and the digitalisation of society, he said.

Lennart Blecher, Head of Real Assets at EQT, said that since its inception in 2008, EQT Infrastructure has grown at pace and today, we have a 130-strong team and three investment strategies: Value-Add, Active Core and the recently launched Transition Infrastructure strategy.

EQT Value-Add Infrastructure takes an industrial approach to value creation in mature infrastructure businesses. It actively partners with high-quality companies with significant and sustainable growth potential to build strong, resilient businesses through hands-on support of management teams, and bringing deep operational expertise in areas such as AI, digitalisation and sustainability.

The EQT Infrastructure team is further supported by EQT’s Industrial Advisors. This global network of more than 600 business executives and entrepreneurs is engaged in the entire investment process and act as board members to contribute operational and strategic expertise to portfolio companies.

EQT Infrastructure VI is 45%-50% committed including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication), based on the actual fund size.

Closed 10 Investments

The Fund has closed 10 investments, including in Constellation Cold Logistics, OX2, Statera and Universidad Europea in Europe; a new partnership with EdgeConnex, Arcwood Environmental (formerly Heritage Environmental Services), Lazer Logistics and Madison Energy Infrastructure in the US; and Rena (formerly KJ Environment) and SK Shieldus in Asia Pacific.

It has also announced entering into exclusive negotiations to acquire a majority stake in Eutelsat Group’s ground station infrastructure business in Europe and a Joint Venture with T-Mobile to acquire Lumos in the US.

Global Business Magazine

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