EQT AB (publ) Q3 announcement 2020

Nachrichtenquelle: PR Newswire (engl.)
21.10.2020, 08:35  |  126   |   |   

STOCKHOLM, Oct. 21, 2020 /PRNewswire/ --

CEO COMMENT - THIRD QUARTER 2020

"The third quarter of 2020 has been busy with activities across the board. On the transaction side, EQT's thematic investment strategy continues to identify and execute attractive opportunities, with Danish based Natural Colors being a good example of a company supported by the sustainable consumer health and environmental megatrends. In total, we signed investments of EUR 6 billion and the pipeline continues to look stable. The portfolio value creation agenda is on track, but market uncertainties related to the pandemic remain. Even though only a few of the portfolio companies operate in the hardest hit sectors, a second wave and a prolonged pandemic may have a negative impact across the portfolio. Looking ahead, a number of strong EQT fund portfolio companies are being prepared for exits, should market conditions remain supportive. There is a good demand for EQT funds, with the EQT IX and EQT Infrastructure V fundraisings running according to plan. In early October, EQT Real Estate II was closed at EUR 1 billion. I am also excited about the launch of EQT Growth, another core area for EQT's future expansion. With numerous growth opportunities in existing strategies and the launch of new strategies, we see the need to accelerate investments in people and our platform into 2021. Looking forward, we will continue our purpose-driven approach, both in EQT AB and the portfolio. We see continued structural growth and interesting long-term opportunities for EQT while remaining vigilant for risks."

Christian Sinding, CEOHIGHLIGHTS DURING THE THIRD QUARTER 2020

  • Total investments by the EQT funds in the quarter amounted to EUR 6.0bn
  • Investments announced during the quarter include IFS in Sweden (EQT IX and EQT VIII), idealista in Spain (EQT IX), Chr. Hansen Natural Colors in Denmark (EQT IX), Colisée in Germany (EQT Infrastructure V), EdgeConneX in the US (EQT Infrastructure IV) and the launch of a joint-venture to build rental homes in the UK (EQT Real Estate II)
  • Total gross fund exits in the quarter amounted to EUR 1.9bn
  • Expected value creation (Gross MOIC) remains "On plan" in key funds in Private Capital and Real Assets, while EQT Infrastructure III, as of September 30, 2020, continued to develop "Above plan"
  • EQT IX was activated and started generating management fees, as announced on July 14, with EUR 13.3bn of commitments as per September 30, 2020
  • EQT VIII had a step-down in AUM-base of EUR 3.4bn
  • The hard cap for EQT Infrastructure V was announced at EUR 15.0bn. EQT AB currently expects to recognize management fees from EQT Infrastructure V from November 1, 2020
  • The hard cap of EUR 1.0bn for EQT Real Estate II was reached
  • Investment level in key funds as of September 30, 2020, excluding events after the reporting period: 15-20% in EQT IX (0%), 80-85% in EQT Infrastructure IV (50-55%) and 5-10% in EQT Infrastructure V (0%)
  • EQT VII Gross MOIC increased from 1.7x in the second quarter to 2.0x in the third quarter
  • The divestment of Credit is expected to close during the fourth quarter
  • Following high activity level throughout the organization and in preparation for the next step of EQT's growth journey, investments in personnel will be accelerated in the coming quarters to future-proof e.g. Client relations and capital raising, EQT technology and Fund management
  • From September 24, 2020, Partners continue to be subject to lock up agreements towards EQT AB, with the right to pledge shares to a bank, as described in the IPO prospectus. Further, EQT AB has granted waivers from lock ups on EQT AB shares for a limited number of individuals, primarily related to discontinued and divested business lines. Under the waivers, shares representing less than 1.5% of EQT's share capital are expected to be divested. Any sale process would be coordinated by EQT AB

HIGHLIGHTS DURING THE LAST TWELVE MONTHS (COMPARED TO LTM ENDING SEPTEMBER 2019)

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EQT AB (publ) Q3 announcement 2020 STOCKHOLM, Oct. 21, 2020 /PRNewswire/ - CEO COMMENT - THIRD QUARTER 2020 "The third quarter of 2020 has been busy with activities across the board. On the transaction side, EQT's thematic investment strategy continues to identify and execute …

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