STOCKHOLM, Oct. 17, 2024 /PRNewswire/ --
Focus on value creation and realizations
"Throughout the third quarter, we continued to execute on a strong pipeline of thematic investment opportunities, drive value creation across the portfolio and systematically pursue realizations. We are taking advantage of improving capital markets to increase exit activity, but risks remain elevated due to an uncertain geopolitical outlook."
Christian Sinding,
CEO and Managing Partner
Highlights for the period Jul-Sep 2024 (Jul-Sep 2023)
Strategic
-- EQT launched fundraising for EQT Private Capital Asia's BPEA IX and set
the target fund size at USD 12.5bn, an increase of almost 20% compared
to BPEA VIII's fee-generating commitments
-- EQT prepared for additional Private Wealth products, in line with the
ambition to reach a total of five products within 6-12 months
-- EQT continues to assess strategic opportunities, organically or through
acquisitions to strengthen its platform
Fundraising
-- FAUM increased to EUR 134 bn (EUR 128 bn). Total AUM was EUR 246 bn
(EUR 232 bn). Gross inflows amounted to EUR 3bn, partly driven by
closed out commitments from EQT Infrastructure VI
-- EQT Infrastructure VI had fee-generating commitments of EUR 16.9bn.
Active fundraising efforts are expected to materially conclude in 2024.
The fund is expected to reach its target size upon its final close in
the first quarter of 2025
-- EQT Active Core Infrastructure closed at EUR 2.9bn in total
fee-generating commitments, including EUR 0.3bn of fee-generating
co-investments. Management fees for the fund, which is currently less
than half invested, are charged on invested capital
-- BPEA IX is expected to be activated in the first half of 2025, and upon
activation, management fees for the predecessor fund BPEA VIII will be
based on net invested capital at the fee rate applicable post the
commitment period
Investment activity(1)
-- Total investments by the EQT funds during the period amounted to EUR 6
bn (EUR 2 bn) driven by continued strong deal flow across regions and
strategies. EQT has executed new thematic investments across cyber
security, waste management, affordable housing and sustainability
-- Investments include Acronis, a leading cybersecurity and data protection
platform (EQT X); AMCS, a global leader in performance and
sustainability software (EQT X, EQT Future); the public-to-private of
PropertyGuru, a leading PropTech company in Southeast Asia (BPEA VIII);
the public-to-private of Keywords Studios, a leader in gaming technology
services (BPEA VIII); KJ Environment, a leading waste treatment provider
in South Korea (Infrastructure VI); and GeBBS Healthcare Solutions, a
leading healthcare technology solutions provider in India (BPEA VIII)
Exit activity(1)
-- Total gross fund exits announced during the period amounted to EUR 3 bn
(EUR 2 bn)
-- EQT has taken advantage of improving market dynamics to pursue various
realizations, including full exits, equity sell-downs and stake sales in
listed assets, minority stake sales, as well as certain exits in mature
funds
-- Exit events include the minority sale of EdgeConneX, a leading global
provider of data center capacity (Infrastructure IV, Infrastructure V);
the partial sell-downs in Galderma, a leader in dermatology (EQT VIII);
the partial sell-down in Beijer Ref (EQT IX); and the full sale of EQT's
stake in Fiberklaar, a leading independent fiber-to-the-home provider in
Belgium (Infrastructure V)
Investment performance
-- All key funds continued to perform On plan or Above plan
-- Value creation on a like-for-like basis across the Key EQT funds
amounted to 4% during the quarter, following continued healthy earnings
growth and a recovery in valuation multiples
-- The development was consistent across business lines, with particularly
strong performance in the listed portfolio companies in EQT Private
Capital's key funds. Recently acquired assets in Private Capital Asia's
key funds were positively impacted by performing ahead of their value
creation plans
People and future-proofing
-- The number of full-time equivalent employees and on-site consultants
(FTE+) amounted to 1,927 ( 1,832 ), of which 1,861 ( 1,752 ) were
FTEs
-- Henry Steinberg was named Global Head of EQT Exeter after Ward
Fitzgerald, founder of EQT Exeter, decided to step down. Since the
acquisition of Exeter in 2021, EQT Exeter has doubled its fee-paying
AUM, revenue, and EBITDA. Ward will work with Henry to ensure a smooth
transition
-- Masoud Homayoun, Head of EQT Value-Add Infrastructure, was also
appointed Head of EQT Infrastructure
-- Since committing to the Science Based Targets initiative in 2021, EQT
has supported 49 portfolio companies in setting science-based
targets.(2) In terms of invested capital, around 57% of portfolio
companies have validated science-based targets, which is about three
times higher than the median alternative asset manager(3)
Other
-- In the third quarter, EQT completed a share buyback program of 2 million
ordinary shares. As previously communicated, EQT expects to execute
share buyback programs twice a year to offset the dilution impact from
EQT's equity incentive programs
-- On October 22, EQT will host its first US capital markets event in New
York
-- EQT will participate in the upcoming UN Climate Change Conference, COP29
in Baku, Azerbaijan
-- Lock-ups related to 12% of EQT's share capital expired during the
quarter, with around 40% of released shares being owned by members of
the Board or Executive Committee. Since the IPO in 2019, EQT's free
float has increased from around 24% to over 40%
Events after the reporting period
-- EQT Infrastructure V announced the sale of a 25% minority interest in
Reworld to GIC
-- Investment levels in EQT Key funds as of 17 October 2024 were 40-45% in
EQT X, 45-50% in EQT Infrastructure VI and 70-75% in BPEA VIII
1. Signed transactions, if not otherwise mentioned
2. Of which five completed the validation process during the period. In
addition, 22 companies are in the process of setting targets
3. BCG, May 2024
Presentation of EQT AB's Q3 Announcement 2024
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 [https://c212.net/c/link/?t=0&l=en&o=4280541-1&h=4177994256&u=https%3A%2F%2Fedge.media-server.com%2Fmmc%2Fp%2Fxuq7xkzf%2F&a=here] and a recording will be available afterwards.
To participate by phone, please register here [https://c212.net/c/link/?t=0&l=en&o=4280541-1&h=406073244&u=https%3A%2F%2Fregister.vevent.com%2Fregister%2FBI2ed1b776b725400387add42b1c42f3ac&a=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.
Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Shareholder Relations, shareholderrelations@eqtpartners.com [mailto:shareholderrelations@eqtpartners.com]
Rickard Buch, Head of Corporate Communications, +46 72 989 09 11
EQT Press Office, press@eqtpartners.com [mailto:press@eqtpartners.com], +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 07:00 CEST on 17 October 2024.
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