Northern Europe-focused private equity firm EQT Partners has raised €845m for its EQT Credit II fund.
The vehicle exceeded its target of €750m with “strong” interest from existing investors, with over 90 per cent committing to the new fund.
Approximately 55 per cent commitments were raised from the Nordic region, with 20 per cent from the rest of Europe and 25 per cent from the Americas. This is a broader investor base compared to that of the preceding fund, where the investor base was predominantly Nordic, the firm said.
EQT Credit II will aim to continue the strategy employed by EQT Credit I and the EQT V Credit Carve-Out. The firm said it intends to invest primarily in stressed and distressed situations, including in the debt of companies that may be facing challenges created by excess leverage or the need for additional capital. It will aim to be a medium-term investor with a bias towards Northern Europe and illiquid or mid-market situations. The fund will also seek to make investments relating to companies that it believes are “operationally sound” and will have “consistent cash flows and/or meaningful intrinsic value”.
Paul de Rome, head of the EQT Credit Team, said, “The confidence expressed by investors demonstrates their appreciation of EQT Credit’s proven track record, successful team and distinct position in the credit landscape”.
Pension funds and insurance companies account for over 60 per cent of the commitments in the fund, with LPs including Access Capital Partners, Andrew W. Mellon Foundation, AP4, Finnish State Pension Fund (VER), Gamla SEB Trygg Liv, Lancashire County Pension Fund, Massena Capital Partners, OFI Asset Management, Sampo and Talanx Asset Management, among others.
“The positive outcome of the EQT Credit II fundraising is yet another successful development in the growth of the EQT Credit platform which has been designed to cover the full range of risk profiles and investor appetite”, added Conni Jonsson, managing partner at EQT Partners.
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