Swedish buyout firm EQT raises €22bn for new fund

London — Swedish buyout giant EQT said on Tuesday it had raised €22bn for its latest buyout fund, bucking a challenging environment for private equity fundraising.

EQT said it had exceeded the fundraising target for its EQT X fund by €2bn, making it its largest fundraise to date.

The fund, which is almost 40% bigger than its predecessor, saw bumper support from private wealth investors, a pool of capital that alternative asset managers are increasingly looking to tap.

“We remain focused on backing and futureproofing companies in attractive and resilient sectors ... and have proven our ability to perform and return capital across cycles,” Per Franzén, head of Private Capital Europe & North America at EQT, said in a statement.

The news comes after a tough couple of years for private equity fundraising, as the fastest escalation of interest rates in decades hindered buyout groups' ability to exit portfolio investments and reduced the flow of capital from their funders.

But as pressure builds to show returns, and with interest rates believed to have peaked, private equity groups are planning to sell or list more companies in 2024, taking advantage of better market conditions, sources have said.

For example, EQT is preparing to launch an initial public offering of Swiss skincare group Galderma as soon as March, after a roughly two-year wait.

EQT’s latest buyout fund has deployed about a third of its capital since inception, announcing seven acquisitions since June 2022, including medical components supplier Zeus and animal pharmaceutical business Dechra Pharmaceuticals.

Last year, rival CVC Capital Partners raised what it claimed to be the world’s largest-ever private equity fund with €26bn in committed capital.

Reuters