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Glossary and Definitions

AIF
Alternative investment fund

AUM
Asset under management

Average AUM
The average balance of AUM for the period, calculated on a quarterly basis

CAGR
Compound Annual Growth Rate

Carried Interest
A share of profits that is received by the EQT AB Group through its holding in Special Limited Partners of EQT funds as variable consideration, fully dependent on the performance of the relevant EQT funds and such EQT funds’ underlying investments. 

Carried Interest Investors
Investors entitled to carried interest in EQT funds through the Special Limited Partner (SLP)

CLO Platform
A CLO is an investment entity which buys several company loans and aggregates them into different groups which are then sold to different types of investors

Developing Companies
As used on this website, the term “developing companies” (and other similar terms used herein) are references to the overall commitment of EQT funds to supporting the development of the portfolio companies under their ownership

EQT funds invest in portfolio companies with a desire to see those entities develop under EQT’s portfolio company corporate governance model, via the appointment of strong industrial boards who work with their management teams to determine, drive and execute value creation strategies; leveraging financial backing, experience and networks as appropriate.

This ongoing development process is monitored with the advice and assistance of EQT Partners.

Effective Management Fee Margin
Weighted average management fee margin, excluding structural and accounting impacts, including late fees, for all EQT Funds contributing to AUM in a specific period

EQT
Where used on its own, is an umbrella term and may refer interchangeably to the EQT AB Group, SEP Holdings Group and/or EQT funds, as the context requires

EQT AB Group or the Group
EQT AB and/or any one or more of its direct or indirect subsidiaries

EQT AB or the Company
EQT AB (publ), reg. No. 556849-4180

EQT Network
The network of EQT advisors which supports the General Partners and/or the fund managers of EQT funds

EQT Partners
EQT Partners AB and its subsidiaries appointed as investment advisor (or sub advisors) to the General Partners and/or managers of EQT funds.

EQT Funds
Various EQT branded funds and any successor funds to such funds together with any other EQT branded fund

EQT Credit
As the context requires, one or more of the EQT funds investing under the Credit investment strategies or the team of EQT Partners investment advisory professionals who advise the General Partners and/or managers of the EQT Credit funds. 

EQT Equity
As the context requires, one or more of the EQT funds investing under the Equity investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or managers of the EQT Equity funds. 

EQT Infrastructure
As the context requires, one or more of the EQT funds investing under the Real Assets investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or managers of the EQT Infrastructure funds.  

EQT Mid Market
As the context requires, one or more of the EQT funds investing under the Mid Market investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or managers of the EQT Mid Market funds (including EQT Greater China II, EQT Expansion Capital I and II funds). EQT Real Estate
As the context requires, one or more of the EQT funds investing under the Real Assets investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or managers of the EQT Real Estate fund.  

EQT Ventures
As the context requires, one or more of the EQT funds investing under the Ventures investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or managers of the EQT Ventures funds 

EQT Advisors
The group of individuals who are not directors or officers of any member of the EQT AB Group and who provide a pool of knowledge and experience to EQT on a consultancy basis

ESG
Environmental, social and governance

FTE
Full-time equivalents, excluding on-site consultants

Fund Investor
An investor in an EQT fund

Fund Manager
The fund manager as appointed by a General Partner

General Partner
An entity directly or indirectly held by EQT AB acts as general partner of the limited partnerships constituting the EQT Fund

Gross MOIC
Multiple of invested capital. Total value of investments divided by total cost of investment. Before deductions for fees and costs. May be calculated on an investment, a fund or as an average.

Industry AUM
Total industry assets under management

Investment Advisors
Employees within the EQT AB Group that provides investment advisory services to the fund managers of the EQT funds

LEI
Legal Entity Identifier

Limited Partner
Investors in EQT funds whose commitment and right to return is derived from the size of the investment

Lower-tier PFICs
Any subsidiaries or other entities in which the Company holds a direct or indirect equity interest, if the Company is a PFIC

Nasdaq Stockholm
The regulated market operated by Nasdaq Stockholm Aktiebolag

Net IRR
The aggregate annual compound internal rate of return based on actual invested amounts using daily cash flow, calculated after deducting: (i) mana­gement fee; (ii) “carried interest”; (iii) the value of any uplift arising in respect of the equity owned by a portfolio company’s management 
and / or board of directors; (iv) transaction costs; and (v) any other fees or expenses paid by the relevant EQT fund or its investors (other than taxes borne or to be borne by investors, including as a result of an investor’s domicile). Computed from the launch of the first EQT fund, EQT I, in 1995 to 30 June 2019 and includes EQT funds raised prior to 2012 which are not managed by the EQT AB Group.

Partners
Employees within the EQT AB Group primarily with the title “Partner” who are also shareholders in the Company

Partner
An individual partner at EQT Partners

PFIC
Passive foreign investment company

Realization (of investments)
Sale or write-off of investment made by an EQT fund

Selected EQT Funds
Currently active funds where initial fund commitments account for >5% of total fund commitments that are currently part of AUM. EQT Infrastructure II is the predecessor fund to EQT Infrastructure III, and is as such included in selected EQT funds for comparability reasons.

Special Limited Partner or SLP
A vehicle through which Carried Interest Investors indirectly invest into a fund structure and is entitled to receive carried interest

Start Date
A fund’s start date is the earlier of the first closed investment or the date when management fees are charged from fund investors

TROIKA
A part of EQT AB Group’s portfolio governance model. The TROIKA consists of the relevant portfolio company’s Chairperson (usually appointed from the EQT advisor network), the responsible investment advisory partner within EQT Partners and the relevant portfolio company’s CEO. Working closely together on an informal and transparent basis, the TROIKA works as a sparring partner to the CEO and keeps EQT well informed of the company performance.

Venture Growth
Refers to an investment strategy in between venture capital and growth equity, primarily investing into established but relatively early stage growth companies where leverage is sometimes used