EQT AB (publ) Half-year Report 2021
Healthy performance and expanding palette of active ownership strategies
“EQT delivered healthy performance during the first six months of 2021 and made good progress in key strategic areas, all in alignment with our thematic and purpose-driven philosophy. We strengthened our market position and accelerated our wider societal ambitions. The combination with Exeter Property Group was completed, which positions EQT among the largest value-add real estate investment managers in the world. Furthermore, we continued to expand the palette of investment strategies, both within Private Capital and Real Assets, introducing longer-hold strategies to further align interests with value-driven investors and to enable impact at scale. EQT offers active ownership strategies to support businesses throughout all stages of a company’s lifecycle.
In terms of deal activity, EQT continued to leverage favorable market conditions, its thematic approach and strong investment capacity. As a result, we increased the investment activity, but we had an even more notable rise in exits. Our fundraising efforts also developed well.
EQT is the first private equity firm in the world to issue a sustainability-linked bond. The bond will increase our flexibility and is yet another example of how EQT integrates sustainability across our business. To ensure we continue to perform and deliver on our high ambitions within sustainability and ESG, we have strengthened our team with additional expertise and appointed Bahare Haghshenas to assume the overall responsibility for sustainability, as Global Head of Sustainable Transformation.
It’s been a busy time for our staff. We continue to invest in talent and nurture our culture while adding people to support our growth journey.”
CEO and Managing Partner
Please note that all figures refer to continued operations, excluding Credit, unless stated otherwise. Exeter’s contribution to financials are included as of time of closing i.e. 1 April 2021.
Highlights for the period Jan-Jun 2021 (Jan-Jun 2020)
- Adjusted total revenue amounted to EUR 711m (EUR 261m), corresponding to an increase of 172% compared to H1 2020. Total revenue (according to IFRS) was EUR 709m (EUR 264m). The increase was driven by management fees (including so called retroactive fees) from EQT IX and EQT Infrastructure V, the combination with Exeter as well as an increase in carried interest and investment income
- Adjusted EBITDA amounted to EUR 492m (EUR 80m), corresponding to a margin of 69% (31%). EBITDA was EUR 437m (EUR 79m), corresponding to a margin of 62% (30%)
- Adjusted net income amounted to EUR 433m (EUR 60m). Net income (according to IFRS) was EUR 361m (EUR 59m)
- Reported basic earnings per share of EUR 0.372 (EUR 0.062). Diluted earnings per share of EUR 0.372 (EUR 0.062)
- Net debt amounted to EUR 113m
- EQT completed the combination with Exeter Property Group, which is now integrated with EQT Real Estate under a joint EQT Exeter brand. The combination positions EQT among the largest value-add real estate investment managers in the world
- EQT Private Capital introduced a longer-hold impact at scale strategy, with Anticimex as its first investment
- EQT, as the first private equity firm in the world, issued a sustainability-linked bond, raising EUR 500m
- Assets under management (AUM) increased to EUR 71.3bn (EUR 36.5bn), primarily driven by the combination with Exeter with AUM of EUR 10.4bn and by EQT IX and EQT Infrastructure V with AUM of EUR 15.6bn and EUR 15.1bn respectively, as of 30 June 2021
- EQT set the target fund size for EQT Growth at EUR 2.0bn. Fundraising was initiated in Q2 and the fund started generating management fees at the end of the period
- Preparations for a longer-hold Infrastructure Core strategy in EQT’s Real Asset segment as well as for EQT’s new APAC strategy continued
- Total investments by the EQT funds amounted to EUR 7.7bn (EUR 1.9bn)
- Total gross fund exits increased to EUR 9.9bn (EUR 0.2bn)
- Private Capital and Real Assets expect to continue to execute on a strong pipeline of potential investments and exits, should market conditions remain supportive
- The number of full-time equivalent employees and on-site consultants (FTE+) increased and amounted to 1,004 (699) at the end of the period, of which FTEs were 938 (651). Exeter accounted for 229 FTE+, of which FTEs were 222
- EQT strengthened its team by adding further sustainability expertise through senior appointments
- In order to future-proof EQT and be ready for the continued growth journey, investments in personnel across investment strategies and the central functions will increase
Events after the reporting period
- Investment and exit activity after the reporting period includes the investments in Parexel (EQT IX), Covanta Holding Corporation, Cypress Creek Renewables, Meine Radiologie Holding, Blikk Holding (EQT Infrastructure V) and the sale of Igenomix (EQT VIII), Fertin Pharma (EQT Mid Market Europe), Iver (EQT Mid Market Europe) and Unilode Aviation Solutions (EQT Infrastructure II)
- Investment level in key funds as of 22 July 2021 were 55-60% in EQT IX and 50-55% in EQT Infrastructure V
- EQT Exeter Europe Logistics Value Fund IV held final close at its hard cap with EUR 2.1bn in fee-generating commitments
Presentation of EQT AB’s Half-year Report 2021
Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CEST.
The presentation and a video link to follow the conference call live can be found here and a recording will be available afterwards.
To participate by phone, please use the following dial-in details below, at least 10 minutes in advance.
Sweden: +46 856 642 651
UK: +44 3333000804
USA: +1 6319131422
Confirmation Code: 38004925
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.
Kim Henriksson, CFO, +46 8 506 55 300
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Shareholder Relations, firstname.lastname@example.org
EQT Press Office, email@example.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 22 July 2021.
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 firm in the world with investment strategies covering all phases of a business’ development, from start-up to maturity. EQT today has approximately EUR 71 billion in assets under management across 27 active funds within two business segments – Private Capital and Real Assets.
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.
The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in 24 countries across Europe, Asia-Pacific and the Americas and has more than 1,000 employees.
More info: www.eqtgroup.com