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CapMan Plc 1–9 2020 Interim Report

CapMan Plc Stock Exchange Release / 1-9 2020 Interim Report
29 October 2020 at 8:30 a.m. EET

CapMan Plc 1–9 2020 Interim Report

Results and significant events in January–September 2020:

  • Group turnover was MEUR 29.6 1 Jan–30 Sep 2020 (MEUR 32.4
  • 1 Jan–30 Sep 2019), a decrease of 9 per cent from the comparison period.
  • Management Company business turnover was MEUR 20.7 (MEUR 19.8), growth was 5 per cent from the comparison period, and operating profit MEUR 5.5 (MEUR 3.6). Management fees were MEUR 19.2 (MEUR 17.4), growth was 10 per cent.
  • Service business turnover was MEUR 8.8 (MEUR 12.5), decrease was 30 per cent from the comparison period, and operating profit MEUR 4.1 (MEUR 8.2).
  • Investment business operating profit was MEUR -3.1 (MEUR 8.1) due to fair value changes of own investments.
  • Operating profit was MEUR 2.6 (MEUR 16.0).
  • Diluted earnings per share were -1.1 cents (6.8 cents).
  • CapMan Nordic Real Estate III fund held a first closing at MEUR 313. The fund’s target size is MEUR 500 and fundraising for the fund continues.
  • CapMan Growth II fund exceeded its target size and has raised MEUR 88 to date.

This stock exchange release is a summary of CapMan Plc’s 1–9 2020 Interim Report. The complete report is available in pdf-format as an attachment to this release and on the company’s website at https://www.capman.com/shareholders/financial-reports/.

Joakim Frimodig, CEO:

”We continued to advance our business in the third quarter of 2020. This year, we have completed several new growth and development initiatives that support our chosen strategic direction and help build a foundation for growing results in the coming years. Our fee-based profitability was on a good level and the impact of recurring fees to our earnings mix is growing. The fair values of our fund investments have continued to develop positively in the third quarter following the decrease brought on by the Covid-19 pandemic in the beginning of the spring.

Our Management Company business grew by 5 per cent following new products and funds under management. The operating profit of the Management Company business was MEUR 5.5, growing by more than 50 per cent from the comparison period due to both growth in fees and improved cost efficiency. During the third quarter, we raised almost MEUR 500 in new capital under management, which increased by approx. 15 per cent from the end of the second quarter. We raised MEUR 313 for the first closing of the CapMan Nordic Real Estate fund and expanded the BVK mandate by MEUR 70. In addition, we increased the size of the CapMan Growth II fund and commitments to the fund have exceeded the target size of MEUR 85. These and other fundraising projects continue, and new capital raised will impact turnover and results in full starting from next year.

Our Service business turnover fell by 30 per cent in the review period compared to last year due to lower transaction-based services in all services areas during the second and third quarter of the year. The market situation following the Covid-19 pandemic provided a backdrop to the lower transaction activity. In comparison, recurring service fees grew well by over 10 per cent in total from the corresponding period last year. We have continued to develop our services and created new business. Our procurement service CaPS has expanded to the Baltcis and investor reporting and analytics company JAY Solutions demonstrated continued strong growth of its customer base. We are also launching a new strategy and wealth advisory operations for the CapMan Wealth Services business. These new initiatives will help build a stronger Service business starting from next year when we also expect growth in transaction-based services. The Service business operating profit was MEUR 4.1 in January–September 2020.

Fair value changes of our own investments form a significant portion of CapMan’s results and account for variability in our earnings model to a large extent. Our reported fair values increased by MEUR 2.6 in the third quarter of the year as valuations continued to correct upward for the second quarter in a row following the steep decline in the early spring. The decrease in fair value of our own investments was as such MEUR 2.6 for the first nine months of the year.

Despite the disturbance brought on by the Covid-19 pandemic, we have successfully maintained our course in developing and growing our business. Results have developed in the right direction in the latest two quarters, fee-based profitability is at a good level and our recurring income grows steadily. Measures taken now build earnings growth for the coming years, including carried interest and return from own investments. Our objective is to pay an annually increasing dividend to our shareholders.”

Financial objectives

CapMan’s objective is to pay an annually increasing dividend to its shareholders.

The combined growth objective for the Management Company and Service businesses is more than 10 per cent p.a. on average. The objective for return on equity is more than 20 per cent p.a. on average. CapMan’s equity ratio target is more than 60 per cent.

CapMan maintains its outlook estimate for 2020

CapMan expects to achieve these financial objectives gradually and key figures are expected to show fluctuation on an annual basis considering the nature of the business. CapMan expects management fees and fees from services to continue growing in aggregate in 2020. Our objective is to improve the aggregate profitability of Management Company and Service businesses before carried interest income and any possible items affecting comparability.

Carried interest income from funds managed by CapMan and the return on CapMan’s investments have a substantial impact on CapMan’s overall result. In addition to portfolio company and asset-specific development and exits from portfolio companies and assets, various factors outside of the portfolio’s and CapMan’s control influence fair value development of CapMan’s overall investments as well as the magnitude and timing of carried interest.

CapMan’s objective is to improve results in the longer term, taking into consideration annual fluctuations related to the nature of the business. For these and other above-mentioned reasons, CapMan does not provide numeric estimates for 2020.

Items affecting comparability are described in the Tables section of this report.

Key figures

MEUR 1-9/20 1-9/19
Operating loss (profit) 2.6 16.0
Items affecting comparability
Acquisition related costs 1.1
Donations 0.3
Items affecting comparability, total 1.4
Adjusted operating loss (profit) 2.6 17.4
Result for the period -0.9 12.3
Items affecting comparability
Acquisition related costs 1.0
Donations 0.3
Items affecting comparability, total 1.3
Adjusted result for the period -0.9 13.6
Earnings per share, cents -1.1 6.9
Items affecting comparability, cents 0.8
Adjusted earnings per share, cents -1.1 7.7
Earnings per share, diluted, cents -1.1 6.8
Items affecting comparability, cents 0.8
Adjusted earnings per share, diluted, cents -1.1 7.6
% 30.9.20 30.9.19
Return on equity, % -1.1 13.3
Return on equity, comparable, % -1.1 14.8
Equity ratio, % 52.0 59.9

Result webcast today at 10.00 a.m. EET

CapMan’s management will present the result for the review period in a webcast to be held at 10.00 a.m. EET. Please access the webcast at https://capman.videosync.fi/2020-q3-results. The conference will be held in English. A replay of the webcast will be available on the company’s website after the event. Due to the ongoing Covid-19 pandemic, CapMan will not arrange an in-person conference.

Helsinki, 29 October 2020

CAPMAN PLC
Board of Directors

Further information:
Niko Haavisto, CFO, CapMan Plc, tel. +358 50 465 4125

Distribution:
Nasdaq Helsinki Ltd
Principal media
www.capman.com

Appendix: CapMan Plc 1–9 2020 Interim Report

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With over €3.5 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, fundraising advisory, and analysis, reporting and wealth management services. Altogether, CapMan employs around 150 people in Helsinki, Stockholm, Copenhagen, London and Luxembourg. We are a public company listed on Nasdaq Helsinki since 2001 and a signatory of the UN Principles for Responsible Investment (PRI) since 2012. Read more at www.capman.com.

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Nordstjernan acquires additional shares in Momentum Group

Nordstjernan

THIS PRESS RELEASE IS NOT A PUBLIC OFFER OR AN OFFER TO ACQUIRE SHARES

Nordstjernan Aktiebolag (“Nordstjernan”) has today acquired 1 share of series B in Momentum Group AB (publ) (“Momentum Group”) for SEK 120 per share. Following the acquisition, Nordstjernan owns 495 848 shares of series A and 25 901 138 shares of series B in Momentum Group. Accordingly, Nordstjernan’s shareholding represents approximately 51.9 per cent of all shares and 51.0 per cent of all votes in Momentum Group.

The acquisition of additional shares in Momentum Group means that Nordstjernan, pursuant to the Swedish Act on Public Takeovers on the Stock Market (Sw. lagen (2006:451) om offentliga uppköpserbjudanden på aktiemarknaden) as well as the Swedish Securities Council’s rulings AMN 2019:42 and AMN 2020:14, is obliged to within four weeks make a public offer to acquire the remaining shares in Momentum Group (a so-called mandatory public offer) unless Nordstjernan within this four week period sells such number of shares that its shareholding represents less than three tenths of the voting rights for all shares in Momentum Group.

Nordstjernan’s intention is to fulfil its obligation to make a mandatory public offer and will announce this by way of a separate press release.

Further information

Nordstjernan submitted this press release for publication at 18:00 CET on October 28, 2020.

Peter Hofvenstam
President and CEO
Nordstjernan AB

Questions will be answered by:

Peter Hofvenstam, CEO, Nordstjernan
E-mail: peter.hofvenstam@nordstjernan.se

Stefan Stern, Head of Communications, Nordstjernan
Telephone: +46 70 636 74 17
E-mail: stefan.stern@nordstjernan.se

Nordstjernan is a family-controlled investment company whose business concept is to be an active owner that creates long-term value growth. More information about Nordstjernan can be found on www.nordstjernan.se.

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TZP Group Named to Inc.’s 2020 List of “The 50 Best Private Equity Firms for Entrepreneurs and Founders”

TZP Group

TZP Group, a multi-strategy private equity firm focused on the lower-middle market, announced today that it was named to Inc.’s “50 Best Private Equity Firms for Entrepreneurs.” TZP seeks to invest primarily in closely-held, private companies in which the owners desire to retain a significant stake and partner with an investor with complementary operating and financial skills to accelerate company growth, increase profitability, and maximize the value of their retained stake. This recognition underscores TZP’s commitment to being a “Partner of Choice” for owners and management teams.

Introduced in 2019, the 50 Founder-Friendly Private Equity Firms list has become a go-to guide for entrepreneurs who want to grow their companies while retaining an ownership stake. To compile the list, Inc. went straight to the source: entrepreneurs who have sold to private equity. Founders filled out a questionnaire about their experiences partnering with private equity firms and shared data on how their portfolio companies have grown during these partnerships.

“We are very proud of our people and the culture that has built TZP’s reputation as a Partner of Choice and are thankful to the many founders and entrepreneurs who have entrusted us as their partners,” said Sam Katz, Managing Partner of TZP Group.
“I get the chance to interact with many entrepreneurs who have relentless drive and want to build a business that fixes problems, improves a process, or makes the world a better place. But to do that, it often takes the backing from a private equity firm that will provide more than just financial backing. It takes wholeheartedly supporting that vision and treating the founders like partners,” says, Scott Omelianuk, editor-in-chief of Inc. media.

In addition, Inc. profiled TZP’s partnership with Jenny Zhu, founder of Triangle Home Fashions. The profile highlights the value-added nature of TZP’s partnership and the resulting growth achieved at the company. “TZP has been a great partner for me and my team,” said Ms. Zhu. “They have contributed in all of the areas that they said they would and invested in the tools and resources to help my company scale.”
Full Article: https://www.inc.com/magazine/202011/graham-winfrey/founder-friendly-private-equity-firms-2020.html
Jenny Zhu Profile: https://www.inc.com/magazine/202011/joe-bargmann/triangle-home-fashions-tzp-group-private-equity-2020.html

About TZP Group
TZP Group, a private equity firm with $1.7 billion raised since inception across its family of funds including TZP Capital Partners, TZP Small Cap Partners and TZP Strategies, is focused on control, growth equity and structured capital investments in business services and consumer companies. Founded in 2007, TZP targets companies with solid historical performance and sustainable value propositions and aims to be a “Partner of Choice” for business owners and management teams. TZP seeks to invest primarily in closely-held, private companies in which the owners desire to retain a significant stake and partner with an investor with complementary operating and financial skills to accelerate company growth, increase profitability, and maximize the value of their retained stake. TZP leverages its investment professionals’ operating and investment experience to provide strategic and operational guidance and is dedicated to long-term value creation.

For more information, please visit www.tzpgroup.com.
For more media inquiries please contact: Dan Gaspar, Partner | dgaspar@tzpgroup.com

About Inc.
The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community they need to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.

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DIF Infrastructure VI reaches final close at €3.03 billion

DIF

DIF Capital Partners (“DIF”) is pleased to announce the final close of DIF Infrastructure VI (“DIF VI) at €3.03 billion, exceeding its €2.5 billion target.

DIF VI targets equity investments in projects and companies with pre-dominantly long-term contracted or regulated income streams including public-private partnerships, concessions, utilities, and (renewable) energy projects, that generate stable and predictable cash flows as well as attractive risk-adjusted returns. The fund targets both greenfield and operational investments in Europe, the Americas and Australasia.

DIF VI has seen strong backing from existing and new investors to the DIF platform, receiving commitments from leading institutional investors across the globe.

Allard Ruijs, Partner at DIF Capital Partners said: “We are proud of this achievement, especially in the challenging times in which we live, which is a testimony to the strength of the DIF platform and the attractiveness of the DIF VI proposition. Over the past 15 years the team has been able to generate attractive returns for our investors by consistently investing in high quality projects, enhancing project value during our ownership through active shareholder engagement, as well as by achieving successful realisations. We are confident that DIF VI will be a successful continuation of this strategy, leveraging DIF’s unique global office network and dedicated local teams to source and manage attractive investment opportunities and build robust and diversified portfolios. We are thankful for the strong support received from investors for the DIF VI partnership.”

DIF VI has made a strong start, having committed to three investments to date thereby deploying ca. 20% of the fund. This includes investments in (i) BluEarth, a Canadian renewable energy platform, (ii) Cascade, a 900 MW long-term contracted Canadian power project, and (iii) stakes in Norte Litoral and Via do Infante, two Portuguese availability-based PPP roads. Furthermore, the fund has a strong pipeline of investments across its target sectors and geographies, including both greenfield and operational projects.

About DIF Capital Partners

DIF Capital Partners is a leading global independent infrastructure fund manager, with €8.5 billion of assets under management across nine closed-end infrastructure funds and several co-investment vehicles. DIF Capital Partners invests in greenfield and operational infrastructure assets located primarily in Europe, the Americas and Australasia through two complementary strategies:

  • DIF Infrastructure funds target equity investments with long-term contracted or regulated income streams including public-private partnerships (PPP/PFI/P3), concessions, utilities, and (renewable) energy projects.
  • DIF CIF funds target equity investments in small to mid-sized economic infrastructure assets in the telecom, energy and transportation sectors.

DIF Capital Partners has a team of over 150 professionals, based in nine offices located in Amsterdam (Schiphol), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto. Please visit www.dif.eu for further information.

Contact: Allard Ruijs, Partner; a.ruijs@dif.eu.

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Bridgepoint completes acquisition of EQT Credit

Bridgepoint

Bridgepoint, the international alternative asset manager, is pleased to announce that it has completed the acquisition of EQT Credit. The acquisition will merge with Bridgepoint’s existing credit business to create an enlarged group which will represent over €7 billion of total assets under management.

Bridgepoint managing partner William Jackson said: “This transaction significantly accelerates the growth of our Credit activities, in line with our wish to continue to offer a diversified range of investment products to our investors. It strengthens Bridgepoint Credit’s existing local presence in London and Paris and adds new credit teams in Germany, the Nordic region and the US.”

Commenting on the newly combined Bridgepoint Credit business, managing partner Andrew Konopelski added: “Bridgepoint Credit continues to be open for business but with significantly enhanced investment firepower. We now have a dedicated team of 50 professionals in seven countries investing three highly complementary strategies that cover corporate credit from syndicated loans through European direct lending to opportunistic credit. Together we’ve been doing this since 2008 and coming together with Bridgepoint marks a new chapter that will mutually strengthen our knowledge of companies, industries and key trends in today’s market. This is a continuation of the same, but only better.”

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Thoma Bravo Completes $22.8 Billion Fundraise

Thomabravo

SAN FRANCISCO and CHICAGO—Thoma Bravo, a leading private equity firm focused on the software and technology-enabled services sectors, today announced the completion of fundraising for three funds totaling more than $22.8 billion in capital commitments: Thoma Bravo Fund XIV, a $17.8 billion fund, Thoma Bravo Discover Fund III, a $3.9 billion fund, and Thoma Bravo Explore Fund, a $1.1 billion fund (the “Funds”). Each fund reached its hard-cap and was significantly oversubscribed. These closings bring Thoma Bravo’s assets under management to more than $70 billion, and the new funds significantly enhance the firm’s capacity to invest in high quality software and technology companies around the world.

“We are grateful to our investors for their tremendous support and their continued confidence in our investment strategy,” said Orlando Bravo, a founder and managing partner at Thoma Bravo. “Over the last 20 years, and over the course of more than 260 transactions, we’ve seen firsthand how well software can perform with the right investment and operational guidance. These three new funds position us to continue executing on our investment approach of buying high quality software companies with experienced management teams, loyal customers and strong product offerings, to accelerate their growth and innovation.”

Thoma Bravo Fund XIV is expected to target large equity investments and is the largest flagship fund in the firm’s history; Thoma Bravo Discover Fund III is expected to make middle-market equity investments; and Thoma Bravo Explore Fund is expected to make lower middle-market equity investments. The Funds received strong support from Thoma Bravo’s network of investors including sovereign wealth funds, public pension funds, multinational corporations, insurance companies, fund-of-funds, endowments, foundations and family offices.

The Funds follow an active year for Thoma Bravo on both the buy and sell side, with investments and realizations representing over $20 billion in combined enterprise value, including the $11 billion sale of Ellie Mae to Intercontinental Exchange.

Thoma Bravo has a more than 20-year track record of partnering with management teams of software and technology companies to implement best practices, invest in growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings with the goal of creating the company’s value. The firm has acquired more than 260 software companies across a range of industries, including healthcare IT, security, financial technology, infrastructure and applications. Today, the firm’s private equity software portfolio includes over 40 companies that generate approximately $15 billion of annual revenue and employ over 45,000 staff around the world.

“The accelerated digital transformation across all industries has underscored how essential software is for commerce and business continuity as well as its continued resilience,” said Jennifer James, managing director, head of investor relations and marketing at Thoma Bravo. “Our investors recognize that our deep experience and track record in enterprise software have positioned us to take advantage of these industry dynamics and the opportunities in the market. As stewards of their capital, we greatly appreciate their support and look forward to applying our software expertise with a goal of continuing to drive successful outcomes for our investors.”

Kirkland & Ellis served as legal advisor for the Funds.

About Thoma Bravo, L.P.
Thoma Bravo is a leading private equity firm focused on the software and technology-enabled services sectors. With more than $70 billion in assets under management as of June 30, 2020, Thoma Bravo partners with a Company’s management team to implement operating best practices, invest in growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings, with the goal of increasing the value of the business. The firm has offices in San Francisco and Chicago. For more information, visit www.thomabravo.com.

Read the release on the PR Newswire website here.

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Sale of EQT Credit to Bridgepoint completed

eqt

Following the signing of a definitive agreement in June 2020 to sell the Credit business segment to Bridgepoint (the “Transaction”), EQT AB (“EQT”) today announces that the Transaction has been completed. All necessary closing conditions, including regulatory, anti-trust and fund investor clearances, have been achieved. The Transaction concludes the review of future strategic options for the business segment and gives Credit a new owner to support its growth prospects. It also permits EQT to further focus its efforts on building scalable value-add strategies focused on active ownership.

The proceeds will be used to continue to deliver on EQT’s defined growth strategy. The Credit business segment was reported as discontinued operations in the half year 2020 report.

JP Morgan has acted as financial advisor and Kirkland & Ellis and Travers Smith as legal advisors to EQT on the Transaction.

Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Press Office, press@eqtpartners.com

About EQT
EQT is a purpose-driven global investment organization with a 25-year track-record of consistent investment performance across multiple geographies, sectors, and strategies. EQT has raised more than EUR 75 billion since inception and currently more than EUR 46 billion in assets under management across 16 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 17 countries across Europe, Asia Pacific and North America with more than 700 employees.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

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CapMan to publish its 1–9 2020 Interim Report on Thursday 29 October 2020

CapMan Plc press release
22 October 2020 at 8.30 a.m. EEST

CapMan to publish its 1–9 2020 Interim Report on Thursday 29 October 2020

CapMan will publish its 1–9 2020 Interim Report on Thursday 29 October 2020 around 8.30 a.m. EET. The company will present the results for the review period over a webcast press conference starting at 10.00 a.m. EET accessible at https://capman.videosync.fi/2020-q3-results. The conference will be held in English. The report and presentation material will be available at CapMan’s website (https://www.capman.com/shareholders/financial-reports/).

Webcast participation does not require advance registration. Due to the covid-19 pandemic, we will not arrange an in-person press conference at our office.

For further information, please contact:
Linda Tierala, Director, Communications and IR, tel. +358 40 571 7895, linda.tierala@capman.com

Webcast:
29 October 2020 at 10.00 a.m. EET
https://capman.videosync.fi/2020-q3-results

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With over €3 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, fundraising advisory, and analysis, reporting and wealth management services. Altogether, CapMan employs around 150 people in Helsinki, Stockholm, Copenhagen, London and Luxembourg. We are a public company listed on Nasdaq Helsinki since 2001 and a signatory of the UN Principles for Responsible Investment (PRI) since 2012. Read more at www.capman.com.

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EQT AB (publ) Q3 announcement 2020

eqt

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, CEO

HIGHLIGHTS 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 France (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)

  • Total fund investments of EUR 9.6bn (EUR 10.5bn)
  • Total gross fund exits of EUR 4.2bn (EUR 5.3bn)
  • Fee-generating AUM of EUR 46.5bn as of September 30, 2020 (EUR 36.8bn). This change is primarily driven by the activation of EQT IX during Q3 2020
  • Number of full-time equivalent employees and on-site consultants (FTE plus) amounted to 709 (636) at the end of the period, of which FTEs amounted to 657 (579)

    EVENTS AFTER THE REPORTING PERIOD

  • The EQT Growth strategy was announced on October 19 with Microsoft Corporate Vice President Marc Brown joining as Partner and Head. With EQT Growth, EQT will be among the very few private markets firms in the world with investment strategies that address the needs of companies throughout their lifecycle
  • On October 16, EQT Infrastructure V announced the acquisition of a stake in Deutsche Glasfaser. With the investment, EQT Infrastructure V is expected to be 10-15% invested based on its target fund size of 12.5bn
  • Thomas von Koch, Partner and previous Managing Partner, being one of EQT’s most senior investment professionals, has decided to revert to focus on EQT funds’ investment activities. As a consequence, he is leaving the Executive Committee as of October 2020

Presentation of EQT AB’s Q3 2020 announcement
Financial analysts and media are invited to participate in a conference, including a presentation at 08:30 CEST.

The presentation and a video link to follow the conference live can be found atwww.eqtgroup.com/shareholders/financial-reportingand 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: 65003104

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 70 665 41 23
Olof Svensson, Shareholder Relations Director, +46 72 989 09 15
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Press Office, press@eqtpartners.com

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 person set out above, at 07:30 CEST on 21 October 2020.                                                                                                 

About EQT
EQT is a purpose-driven global investment organization with a 25-year track-record of consistent investment performance across multiple geographies, sectors, and strategies.

EQT has raised more than EUR 75 billion since inception and currently has around EUR 50 billion in assets under management across 20 active funds within three business segments – Private Capital, Real Assets and Credit. 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 17 countries across Europe, Asia Pacific and North America with more than 700 employees.

More info: www.eqtgroup.com
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Anthony Diaz to Lead Antares’ Loan Syndicate, Sales and Trading Team

Antares

CHICAGO–(BUSINESS WIRE)–Antares Capital announced today the appointment of Anthony Diaz to head of Loan Syndicate, Sales and Trading. Effective January 1, 2021, Mr. Diaz will succeed Peter Nolan, who will retire after more than 35 years in the industry.

“Anthony is a passionate and skilled capital markets professional who has deep relationships with institutional investors”

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Mr. Diaz brings nearly 25 years of experience to his new role. He joined Antares in 2016 after serving 13 years at GE Capital as a member of the Sales Desk and Structuring teams within Capital Markets. Prior to GE, Mr. Diaz held several controllership positions at Cantor Fitzgerald, Nikko Securities and UBS. Mr. Diaz earned a bachelor’s degree in accounting from St. John’s University and an MBA from The Lubin School of Business at Pace University.

“Anthony is a passionate and skilled capital markets professional who has deep relationships with institutional investors,” said David Brackett, CEO of Antares. “Our loan syndicate, sales and trading capabilities are some of the best in the middle market and we look forward to Anthony’s continued leadership as he takes on this new role. We also would like to thank Peter who leaves behind an indelible legacy both within our business and across the entire industry.”

About Antares

With approximately $27 billion of capital under management and administration as of December 31, 2019, Antares is a private debt credit manager and leading provider of financing solutions for middle-market private equity-backed transactions. In 2019, Antares issued approximately $17 billion in financing commitments to borrowers through its robust suite of products including first lien revolvers, term loans and delayed draw term loans, 2nd lien term loans, unitranche facilities and equity investments. Antares’ world-class capital markets experts hold relationships with more than 400 banks and institutional investors allowing the firm to structure, distribute and trade syndicated loans on behalf of its customers. Since its founding in 1996, Antares has been recognized by industry organizations as a leading provider of middle market private debt. The company maintains offices in Atlanta, Chicago, Los Angeles, New York and Toronto. Visit Antares at www.antares.com or follow the company on LinkedIn at http://www.linkedin.com/company/antares-capital-lp. Antares Capital LP is a subsidiary of Antares Holdings LP.

Contacts

Antares Capital
Carol Ann Wharton
475-266-8053
carolann.wharton@antares.com

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