EXCLUSIVE: EQT Partners eyes final close of $800m mid-market Asia fund by year-end

Swedish private equity firm EQT Partners will hit the final close of its $800-million Asia-focused fund, EQT Mid-Market Asia III, by end of this year. The fund is already making investments in the region.

“If you look at the mid market, EQT has a US-mid market and a European mid-market fund and the firm has an Asian mid-market fund. At present, the firm has one which is investing in the region with the front cover of $800 million. The final close will be done by end of this year,” a source close to the development told this portal.

The PE firm, which has raised 24 funds and  $43.6 billion (EUR 37 billion) since it was formed in 1994, has, in fact, ramped up its activities in the Asia Pacific region in the last four years, deploying almost $200 million each year in the mid-market control and co-control space.

In terms of investments as a firm, EQT has good traction in Europe and North America. The firm is now focusing more on Asia. In the region, it looks at investment opportunities in advance services, health-care and tech.

EQT has a lot of investment platforms where the capital is divided in private vehicles which includes big equity buyouts, mid markets, real assets like infrastructure and real estate. “If you look at the mid market, EQT has a US-mid market and a European mid market fund In addition there is a mid market fund with a broader geographical mandate which includes investments in Asia,” the source noted.

Among the platforms, the firm also has EQT Infrastructure, with the latest one being the third fund in the series. “The infrastructure fund has been investing in Europe and US but it has now started looking at Asia. The latest infrastructure fund which is a Euro 4 billion fund has a mandate to invest in this part of the world”, the source pointed out.

The firm globally covers six sectors, with an emphasis on business services, healthcare and consumer retail as these three sectors have generated quite strong deal flows for EQT. It is also branching out in other parts of Southeast Asia like Malaysia and Vietnam with an investment in Vietnam’s English Language Training (ELT) company ILA Vietnam last month.

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