STOCKHOLM, July 17, 2025 /PRNewswire/ --
Strong momentum in a volatile market environment
"Following a difficult start to the year, global markets have regained strength – yet the outlook remains uncertain. Against this backdrop, EQT continues to deliver across all fronts: performance, exits and fundraising. EQT's execution during the first half of 2025 sets us apart and underscores the strength, resilience, and diversification of our platform. Year-to-date, we announced realizations of €13 billion – more than triple the volume from a year earlier. We closed EQT Infrastructure VI at its hard cap, reached a strong first close for BPEA IX, and launched EQT XI. EQT now ranks as the second-largest private equity firm globally by capital raised and the largest alternative investment platform in Europe across private equity, infrastructure, and real estate1. Our global scale, thematic investment approach, and client-first mindset position us to stay at the forefront of the private markets industry."
Per Franzén,
CEO and Managing Partner
Highlights for the period Jan-Jun 2025 (Jan-Jun 2024)
Strategic
- Per Franzén was appointed CEO & Managing Partner. Subsequently, EQT announced changes to its Executive Committee
- EQT increased exit volumes amid volatile market conditions, maintaining its focus on distributing liquidity to its clients
- EQT finalized fundraising for EQT Infrastructure VI at the hard cap
- Fundraising for BPEA IX continued with strong momentum, and EQT launched fundraising for EQT XI
- EQT continued to take market share, benefiting from its scale and global platform, its strong client relationships, and its performance track record. EQT now ranks no. 2 globally in Private Equity, as measured by fundraising in the last five years (PEI)
- EQT made significant progress in the private wealth segment. EQT Nexus fundraising accelerated, and EQT Nexus Infrastructure was launched, targeting clients across Asia and Europe. In addition, EQT introduced an evergreen product in the US, providing access to EQT's global Private Capital investments
- EQT continues to invest in future growth initiatives, such as strengthening its presence across Asia and the U.S, expanding its Infrastructure team, and building its private wealth platform. EQT is also continuously assessing operational efficiencies to ensure its platform is set for continued scalable growth
- EQT continues to assess strategic opportunities, organically or through acquisitions, to strengthen its platform
Adjusted Financials - Alternative Performance Measures2
- Management fees grew by 10% during the period. Carried interest and Investment income increased to €191m, up from €41m, primarily driven by carry recognition in BPEA VI, BPEA VII and EQT VIII. Total Revenue amounted to €1,340m (€1,088m), an increase of 23%
- EBITDA amounted to €806m (€609m), corresponding to an EBITDA margin of 60% (56%). Fee-related EBITDA amounted to €615m (€568m), corresponding to a Fee-related EBITDA margin of 54% (54%)
- Net Income amounted to €682m (€500m). Earnings Per Share before and after dilution amounted to €0.578 (€0.422) and €0.578 (€0.422), respectively
Reported Financials - IFRS
- Total Revenue amounted to €1,273m (€1,232m). Carried Interest and Investment Income amounted to €124m (€184m)
- EBITDA amounted to €640m (€562m), corresponding to an EBITDA margin of 50% (46%)
- Net Income amounted to €346m (€282m). Earnings Per Share before and after dilution amounted to €0.293 (€0.238) and €0.293 (€0.238), respectively
Fundraising
- Gross inflows amounted to €18bn (€7bn), primarily driven by closed out commitments from BPEA IX and EQT Infrastructure VI
- FAUM increased to €141bn (€133bn). FX and other impacted FAUM negatively by approximately €6bn. Total AUM was €266bn (€246bn)
- Fundraising was launched for EQT XI, with a target fund size of €23bn. The fund is expected to be activated during the first half of 2026
- EQT Infrastructure VI closed at €21.5bn in total commitments, including €21.3bn in fee-generating assets under management, exceeding its €20bn target and hitting hard cap. The final size represents a 35% increase on the fund's predecessor, owing to strong support from both existing and new investors
- BPEA Private Equity Fund IX was activated on 1 March 2025 and held its first close in April. As of 17 July 2025, it had received commitments of $11.4bn. Fundraising is expected to materially conclude before year-end, and the fund is expected to reach its $14.5bn hard cap upon final close in 2026
- Fundraising continued for EQT Transition Infrastructure, EQT Exeter Logistics Europe V, and EQT Healthcare Growth. The funds charge fees on committed capital, and fundraising is expected to continue throughout the year
- EQT launched a US-domiciled evergreen vehicle that invests globally across the EQT Private Capital platform. The vehicle is initially distributed via a global private bank
- EQT introduced EQT Nexus Infrastructure, an evergreen strategy offering exposure to EQT's infrastructure strategies, to individual and institutional investors in EMEA and APAC
- During the period, EQT Nexus was made available in several new markets and is currently available through distribution partners in more than 20 countries, up from five countries a year ago
Investment performance
- All Key funds continue to perform On or Above plan
- Key fund valuations increased by on average 1% during the period. Excluding FX effects, the value uplift amounted to 5%. Negative FX effects during the period primarily stemmed from USD-denominated investments
Investment activity
- EQT announced new investments of €7bn across focus themes including digitalization, energy and environment, cyber security, education, as well as transportation and logistics. Investments include the tender offer for Fortnox (EQT X) and the acquisitions of Seven Seas Water and Eagle Railcar Services (EQT Infrastructure VI)
- In addition, EQT provided co-investment opportunities of €11bn for its clients
Exit activity
- EQT accelerated exit activity and announced total gross fund exits of €13bn during the period, more than tripling the volumes from H1 2024. Activity included full exits, minority stake sales, public market sell-downs, and select exits in mature funds
- For example, EQT announced the minority stake sale of IFS (EQT VIII, EQT IX), a provider of cloud enterprise software and Industrial AI applications, valuing the company at over €15bn. EQT also completed the exit of Nord Anglia Education (BPEA VI) to a global consortium of premier institutional investors
- Full exits include Karo Healthcare (EQT VIII), Acumatica (EQT VII), and Pioneer (BPEA VI, BPEA VII)
- Public market exits represented approximately a fifth of total exit volumes during the period, with sell-downs in Galderma, Azelis, and Waystar (EQT Vlll), Kodiak (EQT Infrastructure Ill, EQT Infrastructure IV), Sagility (BPEA VIII), and the IPO of Enity (EQT VII)
Balance sheet, realization of carried interest, and liquidity
- At 30 June 2025, interest bearing liabilities amounted to €2,427m3. Cash and cash equivalents amounted to €499m. Net Debt (ND) amounted to €1,928m. ND/Adjusted EBITDA was 1.2x and ND/Adjusted Fee-related EBITDA 1.7x.4 EQT's revolving credit facility of €1.5bn remained undrawn
- During the period, EQT raised an inaugural USD bond with a nominal amount of $500m, maturing in 2035
- Reported Carried Interest amounted to €86m (€164m). Adjusted Carried Interest amounted to €153m (€21m). Realized (cash) carried interest amounted to €60m (€19m)
- As previously communicated, EQT intends to execute share buyback programs twice a year to offset, over time, the dilution impact from EQT's equity incentive programs. During the period, EQT repurchased 4.9m shares. A further buyback program comprising up to 5.5m shares will be carried out between 18 July and 26 September 2025
- The Annual Shareholders' Meeting 2025 voted to support the Board's dividend proposal of SEK 4.30 per share, to be paid in two installments: SEK 2.15 per share was paid in June 2025 and SEK 2.15 per share is to be paid in December 2025
People
- Per Franzén was appointed CEO and Managing Partner, effective as of the Annual Shareholders' Meeting on 27 May 2025. His predecessor Christian Sinding continues as an Institutional Partner, chairing the EQT Council and the Global Investment Forum, and he continues to be a member of several Investment Committees
- James Yu was appointed to EQT's Executive Committee as Head of Client Relations and Capital Raising
- Suzanne Donohoe (Chief Commercial Officer), Bahare Haghshenas, (Head of Sustainable Transformation), and Ricardo Reyes (Head of Communications & External Affairs) decided to leave EQT. EQT's Executive Committee now consists of eight members
- Bert Janssens and Eric Liu were appointed Co-Heads of EQT Private Capital Europe & North America
- Jacob Wallenberg Jr was appointed a new Board member of EQT at the Annual Shareholders' Meeting
- The number of full-time equivalent employees (FTE) amounted to 1,908 (1,796) at the end of the period. The increase over the last twelve months is primarily driven by the build-out of Private Wealth capabilities in H2 2024. The total net increase in H1 2025 was 22 FTEs
Other
- On 22 May 2025, EQT hosted a capital markets event in London focused on EQT's ownership model and approach to value creation, featuring insights from portfolio company CEOs, Chairpersons, Industrial Advisors, and EQT's leadership team
- On 23 June 2025, Nasdaq announced the inclusion of EQT in the OMX Stockholm 30 Index, effective as of 1 July 2025
- At the end of the period, the number of portfolio companies with validated science-based targets amounted to 62, representing more than 65% of invested capital. In addition, 10 companies are in the process of setting targets
Events after the reporting period
- Investment levels in EQT Key funds as of 17 July 2025 were 50-55% in EQT X, 50-55% in EQT Infrastructure VI and 0-5% in BPEA IX
- EQT Exeter Industrial Value Fund VI acquired a 2 million square foot logistics portfolio in Northern California's Central Valley
- EQT Healthcare Growth announced its third investment with the acquisition of Europa Biosite, a distributor of life science products
1) Source: Private Equity International (PEI) 300 list, Infrastructure Investor and PERE. By USD billion raised during the past 5 years
2) Adjusted Financials, which are alternative performance metrics for the EQT AB Group. For a full reconciliation, please refer to section "Alternative performance measures"
3) Nominal amount
4) Net debt end of period divided by Adjusted EBITDA during the last twelve months
Presentation of EQT AB's Half-year Report 2025
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 and a recording will be available afterwards.
To participate by phone, please register 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
Rickard Buch, Head of Corporate Affairs, +46 72 989 09 11
EQT Press Office, 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 July 2025.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/eqt/r/eqt-ab--publ--half-year-report-2025,c4208201
The following files are available for download:
EQT AB Half-year Report 2025 | |
EQT Lokal |
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