EQT has raised 29 funds with approximately EUR 61 billion in committed capital. Since EQT’s inception, over EUR 35 billion has been invested in more than 240 controlled or co-controlled portfolio companies. EQT has several business lines, all of which focus on assets with certain characteristics.
For instance, the Private Equity business line typically seeks to invest in large, market-leading companies, whereas the Credit business lines typically seeks opportunities in corporate debt. In addition, a fund typically also has a mandate to invest primarily within a certain geographical area, for example in Northern Europe or the US. The term of an EQT fund is typically 7–10 years, with a possible extension of up to three years. Usually, investments are made within the first half and divestments during the second half of the term of the fund. A long-term perspective and the ability to meet commitments over time are essential for an investor in an EQT fund, as the commitment will only be drawn when needed in connection with an investment or capital injection. Correspondingly, capital will be returned to investors over time as assets are divested. The guidelines for the governance and specific terms of the EQT funds are set out in the legal documentation entered into between the respective fund and its investors. Currently, each EQT fund has a Fund Manager and/or General Partner, with its own board of directors and in most cases an Investment Advisory Committee.
The Fund Manager/General Partner is the decision-making body for the fund. Consequently, the Fund Manager/General Partner is responsible for the decision-making with respect to investments and divestments. The board of directors of the fund’s Fund Manager/ General Partner is advised by the EQT investment advisory teams. The Investment Advisory Committee evaluates and makes recommendations to the Fund Manager/General Partner regarding whether to follow the advice given by the Investment Advisor in relation to investment and divestment decisions. Existing EQT funds raised until December 2011 are managed from Guernsey. In 2017, a decision was taken to concentrate EQT’s fund management to Luxembourg. The consolidated hub for General Partners is managed under the EU Alternative Investment Fund Managers Directive, (AIFMD).