The EQT Private Equity advisory team
The EQT Private Equity advisory team consists of more than 100 Investment Advisory Professionals based in Amsterdam, Copenhagen, Helsinki, London, Madrid, Milan, Munich, New York, Oslo, Stockholm and Zurich with focus on core sectors in Healthcare, TMT, Services and Industrial Technology.
The EQT Private Equity advisory team has vast investment expertise, industry and sector knowledge, and established networks in the local business communities and societies. Whilst having a strong sector approach and by maintaining a "local-with-locals" presence, the team is 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's Industrial Advisors, which are selected and retained along the sectors, 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. In the middle market segment, additional focus is on growth equity in family- and entrepreneur owned businesses, corporate orphans and public-to-private transactions.
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 in the large cap segment ranges between EUR 125 million and EUR 1,000 million, and in the mid cap segment between EUR 40 million and EUR 125 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 Private 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 portfolio company CEO and the EQT Private Equity partner. The TROIKA works closely together on an informal and continuous basis, which provides a sounding board 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. EQT's in-house digital team also supports the portfolio companies to accelerate expertise and capabilities within tech and the digital space in order to future-proof the companies for the long-run.
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.