Today EQT has announced its intention to strengthen its balance sheet by listing EQT AB on Nasdaq Stockholm. Investor supports this decision.
Investor was one of the founders of EQT in 1994 and has since its inception been an important sponsor of EQT’s funds. EQT has grown considerably during these 25 years and is today a leading manager of private equity and infrastructure funds with a total of 19 active funds and EUR 40 billion in assets under management.
“We support the intention to list EQT AB. A listing will provide further opportunities for EQT to grow and develop its successful business model built on industrial value creation. We will remain a long-term owner as we see attractive return potential”, says Johan Forssell, President and CEO of Investor.
Following EQT’s announcement of its intention to strengthen its balance sheet on September 10, 2018, Investor has participated in the restructuring of EQT AB. As a result of the restructuring, the relationship between Investor and EQT has been simplified.
Following the restructuring, EQT AB’s assets and revenues have increased and EQT AB is entitled to 100 percent of management fees and 35 percent of carried interest in future funds. In addition, Investor has increased its ownership from 19 to 23 percent. Investor will also have the option to invest up to 3 percent in future funds on a carry free basis and continue to be entitled to a certain share of carried interest in funds that Investor previously has invested in as sponsor. The previous sponsor agreement between EQT and Investor has been dissolved. It was a time-limited sponsor undertaking by Investor to invest in raised funds in exchange for a certain carried interest participation.
As EQT has communicated today, the ambition is to secure a free float in EQT AB of approximately 20 percent. In order to facilitate this, Investor will together with partners on a pro rata basis sell a limited share of its ownership in EQT AB in conjunction with the listing.
Investors’ engagement in EQT is long-term. The total engagement will remain a separate business area.