eQ Asset Management raises 200 million euros for new private equity funds
Press release
12 March 2024, 10:00 am
The new eQ PE XVI North held its first closing at 158 million euros. The fund invests in private equity funds targeting private lower middle market growth companies in Northern Europe. Commitments will be made to primary funds and, to speed up capital deployment, in selected secondary transactions and co-investments. The fund’s portfolio companies will be well-diversified by industry, geography and vintage.
Simultaneously, eQ established its fifth private equity secondary fund, eQ PE SF V, raising 43 million euros. eQ PE XVI North’s secondary allocation will be invested through eQ PE SF V. eQ PE SF V will have the same geographical and company focus as eQ PE XVI North.
The fund raising for both funds continues and they will be marketed to professional investors only. During the recent ten years, eQ has raised more than 1.7 billion euros collectively for its Northern Europe -focused private equity funds. Including eQ’s North-American private equity and venture capital funds, the AuM now totals 2.8 billion euros.
Staffan Jåfs, Head of Private Equity at eQ Asset Management comments:
“Value creation in lower middle market private equity comes predominantly from growth in revenue and improved profitability. The use of leverage is modest compared to large cap private equity and exits are typically made to strategic investors or larger private equity funds in exchange for 100% cash. Our newly established funds will comprise experienced and historically top-performing managers, but also new and highly motivated managers. The secondary market remains attractive and co-investment deal flow continues to increase, allowing us to be even more selective.
The global fund raising market has been challenging and resulted in extended fund raising periods. With this backdrop, we are very pleased with the trust received from our clients and the levels of the first closings. The investment programme of both funds will be activated immediately and the target is that both eQ PE XVI North and eQ PE SF V will be fully committed before the end of 2025.”
Helsinki 12 March 2024
eQ Asset Management Ltd
Further information:
Staffan Jåfs, Head of Private Equity, eQ Asset Management Ltd, +358 (9) 6817 8736, staffan.jafs@eQ.fi
eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 12.9 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.
More information about the Group is available on our website at www.eQ.fi.