CEO COMMENT - FIRST QUARTER 2021
It was a busy first quarter - EQT teamed up with
materially concluded, EQT Infrastructure V had its first close and we set the target size for the EQT Growth fund. In addition, preparations continued
for EQT's potential new strategies and initiatives.
CEO and Managing Partner
HIGHLIGHTS DURING THE FIRST QUARTER 2021
- EQT signed an agreement to acquire
Exeter Property Group and the combination was completed, as announced after the reporting period (1 April 2021 ) -
AUM increased to
EUR 58.7bn as of31 March 2021 (EUR 67.7bn combined withExeter ) -
EQT held its first closing for the EQT Infrastructure V fund and expects to conclude active fundraising e- orts during H1 2021 and the fund to reach its hard cap of
EUR 15bn during 2021 -
The target size for the EQT Growth fund was set at
EUR 2bn , no hard cap has been set to date -
Total investments by the EQT funds in the quarter amounted to
EUR 2.8bn -
Investments announced during the quarter include
Cerba HealthCare inFrance (EQT IX), IVC Evidensia in theUK (EQT IX), Epidemic Sound inSweden (EQT Growth), CYE inIsrael (EQT Mid Market Europe) and the launch of a joint venture to deliver grade-A senior care home facilities inNorthern Italy (EQT Real Estate II) -
Investment level in key funds as of
31 March 2021 , excluding events after the reporting period:-
EQT IX: 40-45% based on
EUR 15bn -
EQT Infrastructure V: 20-25% based on
EUR 15bn
-
EQT IX: 40-45% based on
-
Total gross fund exits in the quarter amounted to
EUR 3.9bn -
Exits include IVC Evidensia (
EQT VII ), Desotec (EQT VII ),Innovyze (EQT Mid Market US) and Dorner (EQT Mid Market US) -
EQT VII Gross MOIC increased from 2.3x to 2.5x during the quarter, following strong value creation and a series of announced exits. The expected value creation (Gross MOIC) for
EQT VII is now characterized as "Above plan" EQT Infrastructure III continued to develop "Above plan", and all other key funds inPrivate Capital and Real Assets remain "On plan", as of31 March 2021 - EQT announced its membership with FCLTGlobal
- EQT announced the promotions of 12 exceptional individuals to partners and the number of partners who are women now comprises around 10% of the total partner group
-
The number of full-time equivalent employees and onsite consultants (FTE+) increased during the period and amounted to 752 on
31 March 2021 , of which 692 were FTEs - Preparations for potential long-hold investment strategies continued during the quarter and EQT has decided that it will seek to receive management fees on net invested capital during the full term of any future funds within these strategies
EQT AB has granted additional waivers from lock up agreements onEQT AB shares for a limited number of individuals. The additional waived shares represent less than 0.1% of EQT's share capital-
No active partner will receive any net proceeds from any sale of waived shares and any sale process related to waived shares will be coordinated by
EQT AB
-
No active partner will receive any net proceeds from any sale of waived shares and any sale process related to waived shares will be coordinated by
-
In order to further increase its financial flexibility,
EQT AB may during 2021 evaluate other long-term financing options alongside the revolving credit facility (RCF) signed inDecember 2020 Exeter's 2020 revenue wasEUR 112m and EBITDA wasEUR 65m . At31 March 2021 Exeter hadEUR 9.0bn in AUM and 233 FTE+
HIGHLIGHTS DURING THE LAST TWELVE MONTHS (COMPARED TO LTM ENDING
- Total fund investments of
EUR 13.8bn (EUR 10.5bn ) -
Total gross fund exits of
EUR 7.1bn (EUR 6.7bn ) -
Fee-generating AUM of
EUR 58.7bn as of31 March 2021 (EUR 35.9bn) primarily driven by the activation of EQT IX and EQT Infrastructure V - Number of FTE+ amounted to 752 (688) at the end of the period, of which FTEs amounted to 692 (637)
EVENTS AFTER THE REPORTING PERIOD
- On
1 April 2021 ,EQT AB Group announced the completion of the combination withExeter Property Group - Investment and exit activity after the reporting period includes the partial sale of
EQT VII's remaining stake in AutoStore -
Investment level in key funds as of
22 April 2021 , were 40-45% in EQT IX and 20-25% in EQT Infrastructure V based on AUM and hard cap, respectively -
EQT IX held final close at its hard cap with
EUR 15.6bn of fee-generating AUM
Presentation of
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The presentation and a video link to follow the conference call live can be found here and a recording will be available afterwards.
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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. Uniquely, EQT
is the only large private markets fi rm in the world with investment strategies covering all phases of a business' development, from start-up to maturity. Including
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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