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Laxman Pai, Opalesque Asia: Swedish private equity firm EQT is looking to raise at least €20 billion (around $23 billion) for its 10th flagship buyout fund, as it seeks to expand its US footprint.
If EQT meets its target, the new fund, EQT X, would be more than 28% larger than its predecessor. It raised €15.6 billion for EQT IX, its ninth main buyout pool, less than a year ago.
According to a press release from the Stockholm investment firm, the EQT X fund's investment strategy and commercial terms are expected to be materially in line with predecessor fund EQT IX.
"The actual fund size of EQT X is dependent on the outcome of the fundraising process and may ultimately be higher or lower than the target size," it added.
The new fund is currently the largest European-managed fund on the market. At €20 billion, it would be the second-largest vehicle to come out of the region after CVC Capital Partners' Fund VIII, which reached a €21.3 billion close in 2020.
"To ensure continuity between two fund generations, EQT's capital raisings usually follow a cycle with successor funds generally targeted to be in a position to commence investment activities when the predecessor fund is close to being fully invested. This means that the commitment period of the predecessor fund typically ends when approximately 80 to 90 percent of its total commitments are invested, with remaining commitments used primarily for add-on acquisitions and strategic capital injections...................... To view our full article Click here
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