EQT AB (publ) Q1 Announcement 2022

Building a world leader in active ownership strategies

“Throughout the first quarter, we have continued to execute on our strategic agenda, further strengthening EQT’s ability to generate returns for our clients and make a positive impact at scale. By joining forces with Baring Private Equity Asia (BPEA), we are building a true global leader in active ownership strategies. Moreover, the first three months of the year have also been characterized by active fundraising, continued investment and exit activity and resilient fund valuations. Nevertheless, the quarter is overshadowed by Russia’s invasion of Ukraine and the human tragedy taking place. Whilst our portfolio companies had very little activity in the region, EQT is supporting any portfolio companies and the people affected, and all portfolio companies have been urged to wind down any operations in Russia.”

Christian Sinding,

CEO and Managing Partner

Highlights for the period Jan-Mar 2022 (Jan-Mar 2021)

Strategic

• EQT announced the combination with Baring Private Equity Asia (BPEA), creating a scaled platform in Asia. The transaction is expected to close in Q4 2022
• Launch of EQT Active Core Infrastructure - a longer-hold fund targeting core infrastructure companies that provide essential services to society
• The acquisition of Life Sciences Partners (LSP) closed on 28 February 2022, creating a new business line, EQT Life Sciences
• Bear Logi, a value-add logistics team focused on the Japanese and Korean markets, joined EQT Exeter to further strengthen EQT’s footprint in Asia. The transaction closed on 27 January 2022

Fundraising

• AUM increased to EUR 77bn, of which EUR 2.4bn relates to LSP’s AUM per 31 March 2022
• Fundraising continued for EQT Growth, EQT Future and various funds within the business line EQT Exeter, including EQT Exeter US Industrial Core-Plus IV
• Fundraising was initiated for EQT X, EQT Ventures III, EQT Active Core Infrastructure and EQT Exeter US Industrial Value VI

Investment activity

• Total investments by the EQT funds in the quarter amounted to EUR 3bn
• Investments during the quarter include Recipharm add-ons Arranta Bio and Vibalogics (EQT IX), InstaVolt and Stockland Retirement Living (EQT Infrastructure V), SNFL and IFG (EQT Future) and Ardoq (EQT Growth)
• Investment level in key funds as of 31 March 2022, excluding events after the reporting period:
  • EQT IX: 75-80%
  • EQT Infrastructure V: 70-75%

Exit activity

• Total gross fund exits announced in the quarter amounted to EUR 2bn
• Signed exits include Forsta (EQT Mid Market US), Elevate (EQT Mid Market), Touhula (EQT Mid Market) and IFS and WorkWave (EQT VIII)

Value creation

• EQT Infrastructure III, EQT VII and EQT VIII continued to develop “Above plan”
• EQT Infrastructure II, EQT Infrastructure IV, EQT Infrastructure V and EQT IX continued ”On plan”

People & Sustainability

• The number of full-time equivalent employees and on-site consultants (FTE+) increased by 159 during the quarter and amounted to 1,319 (752), of which 1,223 (692) were FTEs. LSP and Bear Logi accounted for 56 FTE+ as of 31 March 2022
• Bahare Haghshenas, Global Head of Sustainable Transformation, joined the Executive Committee
• EQT Future announced three new Mission Board members: Ho Ching, recently retired CEO of Temasek; Naina Lal Kidwai, former Country Head of HSBC India; and Svein Tore Holsether, President and CEO of Yara International; and an Impact Director, Hedda Pahlson-Moller, Co-founder and CEO of TIIME.org
• EQT hired Christina Drews as new COO, to strengthen the strategic development of EQT’s operating platform. Christina Drews will join EQT and the Executive Committee in June
• EQT AB established a Sustainability Committee, marking the first Board-level commitment to sustainability in the private markets industry

Other

• EQT priced a total of EUR 1.5bn in sustainability-linked bonds; a EUR 750m sustainability-linked bond maturing in 2028 and a EUR 750m sustainability-linked bond maturing in 2032. EQT intends to use the net proceeds of the bonds, together with the issue of ordinary shares, to fund the consideration and transaction expenses in connection with the combination with BPEA
• EQT AB’s long-term issuer credit rating has been confirmed by Fitch Ratings Ltd. to be A- with a negative outlook as of 21 March 2022

Events after the reporting period

• Investment level in key funds as of 26 April 2022, were 75-80% in EQT IX and 70-75% in EQT Infrastructure V
• EQT set the hard cap for EQT X at EUR 21.5bn
• EQT has agreed with its RCF lenders to increase the size of its existing RCF by EUR 500m to EUR 1,500m
• EQT committed EQT’s portfolio companies to achieving net zero by 2040, ten years faster than required by climate science

Presentation of EQT AB’s Q1 Announcement 2022

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 use the following dial-in details below, at least 10 minutes in advance.

Sweden: +46 856 642 651
UK: +44 3333000804
Confirmation Code: 17149104

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

Kim Henriksson, CFO, +46 8 506 55 300
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Shareholder Relations, shareholderrelations@eqtpartners.com
Rickard Buch, Managing Director, Communications, +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 07:30 CEST on 26 April 2022.

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 EUR 77 billion in assets under management across 36 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 23 countries across Europe, Asia-Pacific and the Americas and more than 1,300 employees.  

More info: www.eqtgroup.com
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