Resilience through active ownership and thematic focus
"EQT concluded 2022 - a transformative year - as a global leader in active ownership. We relentlessly continue to future-proof our expanding platform, while navigating macroeconomic and geopolitical uncertainty."
CEO and Managing Partner
Highlights for the period Jan-
Financial
- Adjusted total revenue amounted to
EUR 1,536m (EUR 1,623m ). Management fees increased by 22%, which was offset by a decrease in carried interest. Adjusted total revenue decreased by 5%. Total revenues (according to IFRS) wereEUR 1,497m (EUR 1,596m ) -
Adjusted EBITDA amounted to
EUR 829m (EUR 1,100m ), corresponding to a margin of 54% (68%). EBITDA (according to IFRS) wasEUR 506m (EUR 970m ), corresponding to a margin of 34% (61%). The margin decrease in 2022 was primarily driven by lower carried interest -
Adjusted net income amounted to
EUR 654m (EUR 989m ). Net income (according to IFRS) wasEUR 176m (EUR 909m ) -
Adjusted basic earnings per share amounted to
EUR 0.634 (EUR 1.011 ). Adjusted diluted earnings per share amounted toEUR 0.634 (EUR 1.010 ). Reported basic earnings per share amounted toEUR 0.171 (EUR 0.928 ). Reported diluted earnings per share amounted toEUR 0.171 (EUR 0.928 ) -
Financial net debt amounted to
EUR 1,355m (EUR 88m in net cash), reflecting the financing of the BPEA cash consideration. Available liquidity includes cash and cash equivalents ofEUR 645m , an undrawn RCF ofEUR 1.5bn and~EUR 1bn of management fees to be received in early 2023
Strategic
- EQT completed the combination with BPEA, a leading private markets firm in
Asia , creating a scaled and diversified global leader in active ownership strategies -
EQT completed the acquisitions of
Life Sciences Partners (LSP), a leading European life sciences venture capital firm;Bear Logi , a value-add logistics team focused on the Japanese and Korean markets; andRedwood Capital Group , a US-based residential value-add and core plus investment manager
Fundraising
- FAUM increased to
EUR 113bn (EUR 73bn ), primarily driven by the combination with BPEA with FAUM ofEUR 22bn at the time of closing, and by closed-out commitments in EQT X, which were partially offset by 9bn of step-downs primarily related to EQT IX and EQT Infrastructure V. Total AUM1 wasEUR 210bn -
BPEA EQT held its final close of BPEA VIII at hard cap of
USD 10.5bn in fee-generating commitments (USD 11.2bn in total commitments), making it one of the largest ever private equity funds raised by anAsia -based private equity firm -
EQT set the target fund size for EQT Infrastructure VI at
EUR 20bn . The fund was activated inDecember 2022 , withEUR 2.8bn raised by year-end 2022. The majority of fundraising is expected to be concluded in 2023 -
EQT launched fundraising for EQT X (with a target fund size of
EUR 20bn ). Fundraising is expected to be concluded in 2023, withEUR 15.4bn raised by year-end 2022, and a further~EUR 1bn committed to date in 2023 -
EQT Growth had its final close at
EUR 2.2bn , representing the largest first time growth fund inEurope ever, and EQT Ventures III had its final close atEUR 1.0bn , making itEurope's largest venture capital fund committed to early-stage tech startups -
Fundraising was initiated for EQT Active Core Infrastructure, with a target fund size of
EUR 5.0bn . Fundraising continued for EQT Future -
Fundraising was initiated for EQT Exeter US Industrial Value VI, with a target fund size of
USD 4.0bn and EQT Exeter EU Industrial Core II, with a target fund size ofEUR 2.5bn . EQT Exeter Industrial Core-Plus Fund IV had its final close atUSD 3.0bn , exceeding its target size ofUSD 2.5bn
1) Total AUM is defined as the sum of fee-generating AUM, value appreciation of investments and fair market value of non-fee-generating co-investments as well as remaining commitments in active funds and committed capital yet to be fee-generating
Investment and exit activity2
- Total investments by the EQT funds decreased to
EUR 12bn (EUR 21bn ) -
Notable investments during the year include Envirotainer,
United Talent Agency ,Billtrust (EQT X), SPT Labtech,Recipharm's add-ons Arranta Bio and Vibalogics (EQT IX), InstaVolt,Stockland Retirement Living (EQT Infrastructure V) and Madison Energy Investments (EQT Infrastructure VI) -
Total gross fund exits during the year amounted to
EUR 11bn (EUR 30bn ) -
Signed exits include Facile.it, IFS and
WorkWave (EQT VIII),EUR 2bn of exits in EQT Exeter (various funds), Saur (EQT Infrastructure III ) andBushu Pharmaceuticals (BPEA V)
2) Includes both closed and signed transactions, if not otherwise mentioned
Investment performance
- All key funds continued to perform On plan or Above plan
-
As of closing, BPEA VII and BPEA VIII were classified as key funds from the Group's perspective. The target returns for these funds are the same as for EQT's key funds within the
Private Capital business segment, where "On plan" refers to expected Gross MOIC between 2.0-2.5x. BPEA VII is performing Above plan and BPEA VIII is performing On plan - During the year, fund valuations were generally supported by strong operational performance among portfolio companies, and certain exits above fund valuations, offset by lower public market valuation references
People and future-proofing
- The number of full-time equivalent employees and on-site consultants (FTE+) increased and amounted to 1,790 (1,160) at the end of the period, of which 1,669 (1,059) were FTEs. Approximately half of the FTE growth was from business combinations. EQT has reduced the pace of hiring and is currently only making selective hires to secure growth in focus areas such as Private Wealth, and the regions
North America andAsia - EQT established a Sustainability Committee, marking the first Board-level commitment to sustainability in the private markets industry
-
Bahare Haghshenas (Global Head of Sustainable Transformation),
Christina Drews (Chief Operating Officer),Jean Eric Salata (Head of BPEA EQT and Chairperson of EQT Asia),Gustav Segerberg (Head of Business Development), andRicardo Reyes (Global Head of Communications and External Affairs) joined the Executive Committee.Suzanne Donohoe (Chief Commercial Officer) was also appointed to the Executive Committee, and started inJanuary 2023 . Caspar Callerström (Deputy CEO) and Morten Hummelmose (Head of CR) stepped down from the Executive Committee, and will remain committed to EQT through advisory roles and theEQT Foundation -
EQT issued a total of
EUR 1.5bn of sustainability-linked bonds -
EQT was included in the
MSCI ESG Leaders Index and the Dow Jones Sustainability Indices - As per the agreements entered into as part of EQT's combination with Exeter, lock-ups on 7m shares expired. Any sale of the shares is subject to coordination by EQT, together with other previously released but not sold shares
Events after the reporting period
- Investment levels in key funds as of
18 January 2023 were 10-15% in EQT X based on target fund size, 15-20% for BPEA VIII and 0-5% in EQT Infrastructure VI based on target fund size -
The Board proposes a dividend per share of
SEK 3.00 (SEK 2.80 ), to be paid in two installments,SEK 1.50 (SEK 1.40 ) inJune 2023 andSEK 1.50 (SEK 1.40 ) inDecember 2023
Presentation of
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Information on
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
EQT Shareholder Relations, shareholderrelations@eqtpartners.com
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
This is information that
About EQT
EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. EQT has investment strategies covering all phases of a business' development, from start-up to maturity. EQT today has
With its roots in the Wallenberg family's entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.
More info:www.eqtgroup.com
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