Latest news with #EQTAB
Yahoo
3 days ago
- Business
- Yahoo
EQT AB (EQBBF) H1 2025 Earnings Call Highlights: Record Exit Volumes and Strong Fundraising ...
Exit Volumes: More than tripled compared to the first half of last year. Realizations: Exceeded investments with a weighted average return of 2.3x over the last 12 months. Capital Deployment: EUR7 billion of capital invested during the first half. Proceeds Generated: Approximately EUR20 billion for investors over the last 12 months. Fundraising: Gross inflows of EUR18 billion, with Infrastructure VI closing at EUR21.5 billion. Management Fees Growth: Increased by 10% year-over-year. EBITDA Margin: Increased to 60%, up from 56% in the first half of 2024. Carried Interest and Investment Income: Increased to EUR191 million, up from EUR41 million in H1 of '24. Dry Powder: Approximately EUR50 billion available. Exit Announcements: Approximately EUR13 billion in exits announced in the first half of the year. Target Returns: Realized return of about 2.4x in Private Capital (Trades, Portfolio), 2.1x in Infrastructure, and 2.9x in Asia. Warning! GuruFocus has detected 5 Warning Signs with EQBBF. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points EQT AB (EQBBF) achieved a significant increase in exit volumes, more than tripling compared to the first half of the previous year, with realizations exceeding investments. The company successfully closed Infra IV at hard cap and launched EQT XI, demonstrating strong fundraising capabilities. EQT Nexus expanded its availability to over 20 countries, and two new evergreen vehicles were launched, enhancing the company's private wealth offerings. EQT AB (EQBBF) maintained a strong global presence and geographical diversification, which positions it well to deliver alpha for clients in a volatile market. The company reported a robust pipeline for the second half of the year, with significant opportunities in Asia, particularly in India and Japan. Negative Points The fundraising environment remains challenging, with a slower deal-making environment in certain regions. EQT AB (EQBBF) faces potential risks from currency fluctuations, as the depreciation of the dollar against the euro negatively impacted fund valuations. The company anticipates a longer time to achieve target MOIC returns for EQT IX and Infrastructure V compared to prior vintages. There is uncertainty regarding the exact timing of when Infra IV will enter carry mode, with expectations set for 2027 unless market conditions improve significantly. The company is undergoing organizational changes to streamline operations, which may introduce short-term disruptions as it integrates functions and reduces complexity. Q & A Highlights Q: How should we view the EUR23 billion target for EQT XI compared to EQT X? Is it due to tough fundraising markets? A: The EUR23 billion target for EQT XI is based on the previous fundraising amount for EQT X, which was EUR20 billion, and ended up raising EUR22 billion. We see good momentum in the fundraising for EQT XI, and the final hard cap is yet to be determined. - Per Franzen, CEO Q: Could you explain the expected EUR100 billion fundraising cycle and the role of evergreen funds? A: The EUR100 billion fundraising cycle includes a significant portion from our flagship funds. Evergreen funds are expected to contribute around 10% of the capital, primarily through co-investments and US evergreen strategies. These funds invest alongside our main funds, not directly into them. - Gustav Segerberg, Head of Business Development Q: What are the strategic changes you have implemented since becoming CEO, and what more is planned? A: We've reorganized parts of the firm, established a new leadership team, and plan further actions to maintain agility and capitalize on growth opportunities. This includes slowing net headcount growth and optimizing costs. - Per Franzen, CEO and Kim Henriksson, CFO Q: How does the potential inclusion of 401(k) plans in private markets impact EQT's strategy? A: The 401(k) market presents a significant growth opportunity for our evergreen strategies. While initial focus may be on more liquid strategies like credit, we expect private equity, infrastructure, and real estate to become relevant over time. - Gustav Segerberg, Head of Business Development and Per Franzen, CEO Q: Can you provide more details on the EUR1 billion carry expected from existing funds? A: The EUR1 billion carry from funds currently in carry mode is expected to be realized over more than two years, depending on market conditions and exit readiness. - Kim Henriksson, CFO Q: What is EQT's approach to potential new strategies, such as private credit? A: We are exploring opportunities to fill gaps in our platform, including secondary solutions in private markets. This aligns with client interests and could strengthen our relationships with investors. - Per Franzen, CEO Q: How do you view the current exit environment, and what are your expectations for H2? A: We have a strong exit pipeline and are optimistic about achieving our original exit agenda for the year, provided market conditions remain stable. - Per Franzen, CEO Q: How do you plan to address the FX impact on EBITDA margins? A: We monitor FX impacts closely but do not hedge. Approximately 45% of our revenue and one-third of our costs are USD-based. We adapt as necessary to manage these impacts. - Kim Henriksson, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
4 days ago
- Business
- Bloomberg
EQT, Omers, Phoenix Eye Final Bids for Cellnex Swiss Business
By , Eyk Henning, and Allegra Catelli Save EQT AB, Omers Administration Corp. and Phoenix Tower International are considering final bids for Cellnex Telecom SA 's majority stake in its Swiss business, which could fetch as much as €2 billion ($2.3 billion), people with knowledge of the matter said. Suitors are expected to lodge binding offers by the end of next week, according to people, who asked not to be identified as the information is private.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Qarlbo Biodiversity Aims to Reshape Timber Production
Qarlbo Biodiversity, formed by the founder of Swedish private-equity firm EQT AB, expects its latest deal to show that improving timber production sustainability can benefit both the environment and profits. The investment and forestry management business has agreed to sell as much as 500,000 tons of material generated by U.S. forest thinning—removing trees and underbrush to improve health and growth—to Woodland Biofuels in Canada over a number of years. The maker of renewable natural gas based in Toronto will use the supplied material as feedstock.
Bloomberg
4 days ago
- Business
- Bloomberg
EQT Underlying Profit Surges as First-Half Exits Hit €13 Billion
Swedish private equity group EQT AB reported better-than-expected underlying profit in the first half of 2025 as exit volumes jumped and all of its funds performed at or above plan. Adjusted earnings before interest, taxes, depreciation and amortization grew 32% from a year ago, to €806 million ($937 million), exceeding average analyst estimates of €775 million.
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Business Standard
5 days ago
- Business
- Business Standard
Indira IVF's $408 million India IPO may see EQT, founders exit stake
Indira IVF Hospital is reviving its initial public offering plans in India and will soon submit preliminary documents for a listing that may fetch Rs 35 billion ($408 million), according to people familiar with the matter. The company, backed by private equity firm EQT AB, plans to submit the so-called draft red herring prospectus later this month, according to the people, who asked not to be identified discussing a private matter. The deal won't involve the issue of new stock as existing shareholders will be selling their holdings, the people said. EQT will probably offload 29 billion rupees of shares in the offering, and three members of the founding family — Ajay Murdia, Kshitiz Murdia and Nitiz Murdia — will each sell shares worth Rs 2 billion, the people said. A spokesperson of the company didn't immediately respond to an email seeking comment. The company had initially submitted a draft prospectus in February but withdrew it in March. The withdrawal came as the IPO plans coincided with the release of a Bollywood biopic based on the company's founder, which drew concerns from the Securities and Exchange Board of India, according to the Economic Times. Founded in 2011, Indira IVF operates more than 155 fertility centers and works with 315 IVF specialists across India as of September 2024, according to a previously filed preliminary prospectus. Kotak Mahindra Capital Co., IIFL Capital Services Ltd., JPMorgan Chase & Co. and UBS Group AG are advising on the IPO.
