Seeks high-quality, market-leading, medium-sized to large companies in Northern and Central Europe and the US with significant value-creation opportunities.
The EQT Equity team
The EQT Equity team consists of 60 Investment Advisory Professionals based in Amsterdam, Copenhagen, Helsinki, Munich, New York, Oslo, Stockholm and Zurich.
The EQT Equity Investment Advisory team has vast investment expertise, industry and sector knowledge, and established networks in the local business communities and societies. By maintaining a "local-with-locals" presence, the Investment Advisory Professionals are uniquely positioned to analyze companies and the markets in which they operate, and to develop proprietary investment opportunities. The teams’ industrial approach, combined with an ability to see what is "beyond the obvious" in terms of growth potential, industry consolidation or structural change, are key advantages when scanning investment opportunities and monitoring portfolio company development.
Exploring investment opportunities
The team, in collaboration with the EQT Industrial Advisors, seeks to identify potential control or co-control equity investments in companies with strong or improving market positions, a significant potential for top-line and earnings growth and an engaged management team. This work, in conjunction with opportunities originating from the Industrial Advisors, ensures a strong pipeline of possible transactions. Targeted companies should have the potential for improvement and value creation by investing in growth, in performance improvement, and active participation in industry consolidation through add-on acquisitions. The typical equity investment opportunity ranges between EUR 100 million and EUR 600 million.
The focus is on finding companies with underlying competitive advantages, such as operational excellence, unique brand qualities and superior product characteristics – the essential building blocks of a strong market position. When assessing a company’s growth potential, an array of factors are considered, such as addressable market size, potential for new products and geographical expansion, distribution channels and customer satisfaction.
Joining forces for development
Once a portfolio company has been acquired, EQT appoints a Board of Directors with a Chairman (an EQT Industrial Advisor with relevant management background) supported by other sector/industry specialists from the Industrial Network and an EQT Equity partner. The Board of Directors defines and monitors strategic plans and ensures that management gets the appropriate support and resources to run the portfolio company in an efficient, responsible and accountable manner.
There is also the more informal forum called the TROIKA consisting of the Chairman, the EQT Equity partner and the portfolio company CEO. The TROIKA works closely together on an informal and continuous basis and is a sparring partner to the CEO. He or she can address and get advice and support on different topics such as operational or strategic issues. The TROIKA offers the portfolio company an extra supportive forum and keeps the owners updated on the business and progress. The TROIKA does not have decision-making powers and is in no way a substitute for the portfolio company Board of Directors.
All parties involved – owners, board and management – invest and contribute skills and expertise, striving towards the same goal of making the company stronger, more sustainable and well-positioned to continue to prosper also after EQT’s ownership.
The team also monitors and analyzes the position of the portfolio company during EQT’s ownership with respect to recommending an exit. EQT is highly focused on securing a professional hand-over of a strong and sustainable company to the new owner.