Seeks to identify investment opportunities in medium-sized infrastructure businesses with potential for operational value creation in the Nordic region, Continental Europe and North America as well as real estate investment opportunities across selected markets in Europe
The EQT Real Assets team
The EQT Real Assets team consists of around 50 Investment Advisory Professionals based in London, Madrid, Munich, New York, Stockholm and Zurich.
The EQT Real Assets Investment Advisory team has vast investment expertise and knowledge within the infrastructure and real estate sector, as well as 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 infrastructure companies and real estate assets and the markets in which they are located and operate, to develop proprietary investment opportunities. The teams’ industrial, hands-on approach, combined with an ability to see what is "beyond the obvious" in terms of operational value creation potential, are key advantages when scanning investment opportunities, unlocking their value and monitoring their development.
Exploring infrastructure investment opportunities
The team, in collaboration with the EQT Industrial Advisors, seeks to identify control or co-control equity investments in medium-sized infrastructure companies that provide an essential service to society, are recession resilient, have secure cash flows and ideally, offer some inflation protection. The typical equity investment opportunity ranges between EUR 50 million and EUR 400 million.
Several types of opportunities, including stand-alone operating infrastructure companies, infrastructure assets that have evolved into corporate orphans and government privatizations are evaluated by the team. Ideal investment targets are operating companies in industries with regulated infrastructure, concession based infrastructure, market-driven infrastructure or infrastructure-related services.
When it comes to investments themes and sectors, the focus is on companies within the energy, transport & logistics, environmental, telecom and social sectors.
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 EQT Industrial Network and an EQT Real Assets 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 Infrastructure 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 has concluded.
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.
Identifying Real Estate value add investments
The team seeks to identify value-add real estate investment opportunities that allow to unlock underlying asset-specific value in European markets with promising rental growth outlook. The focus is on office assets in gateway cities with strong demographics driving above-average GDP and office based employment growth.
The team envisages more asset management intensive investments with typical equity commitments between EUR 30 million and EUR 65 million. Ideal investment opportunities are transitional assets in primary locations, dominant assets in secondary locations, under- and/or mismanaged assets as well as economically obsolete buildings.
Value-add stems from an intensive and seamless asset management process with the aim to reposition the assets for their exit.
EQT is highly committed to addressing sustainability in its real estate assets through a responsible approach to economic, environmental and social issues through all phases of the property investment cycle.