Investing

EQT Celebrates Three Decades of Excellence and a Future of Ambitious Growth

STOCKHOLM, March 6, 2024 /PRNewswire/ – Today, EQT, a global frontrunner in active ownership strategies, commemorates its 30th anniversary and its impressive five-year journey as a listed entity. In an industry that has grown intensely competitive, EQT stands out with its remarkable growth statistics, the smart expansion of its profit margins, and soaring market capitalization. These milestones are pivotal in the company's history, demonstrating its unwavering commitment to delivering superior returns to its worldwide clientele.

Since its public offering in 2019, EQT has not only quadrupled its total revenues but has also upgraded its adjusted EBITDA margin significantly, climbing from 46% to a robust 58%. The market capitalization has surged by approximately 470%, a testament to the company's solid strategy anchored in vigorous fundraising initiatives and strategic mergers and acquisitions. EQT's formidable financial performance and milestones are reflective of its relentless pursuit to exceed industry benchmarks and create value for its investor base, consistently outperforming many of its peers.

During its Capital Markets Day, EQT laid out an ambitious vision. The outlined strategic objectives and insights into the financial goals for the medium to long term paint a picture of a company that is far from complacent about its success. EQT's leadership remains keenly focused on their strategy - to maintain its leading position in the private markets industry through innovative advancement and superior investment performance.

EQT’s investment philosophy is predicated on a thematic approach to its investments, underpinned by localized teams that truly understand regional dynamics. A robust governance model and a global network of industrial advisors afford the company a distinctive edge in the market. This, coupled with its values-driven culture and an overarching mission to produce outstanding returns, cements its status in the private markets space. Currently, EQT is prominently positioned as top 3 globally in Private Equity, top 5 in Infrastructure, unrivaled at number 1 in Value-Add Infrastructure, and within the top 10 ranks in Private Real Estate.

Building on this solid foundation, EQT's ambitious targets are evident in its aspirations—to ascend to the global summit in Private Equity rankings, to solidify its place within the top 3 in the Infrastructure sector all the while maintaining its leadership in Value-Add Infrastructure, and to rise into the top 3 players in the realm of Private Real Estate. These goals underscore EQT’s commitment to apply its advanced value creation methodologies to stay ahead in a competitive landscape.

“EQT has consistently sought out opportunities that will redefine our industry. We are determined to capitalize on emerging trends like climate change and AI to not only stay relevant but to lead the charge in creating innovative solutions for our clients,” said Christian Sinding, CEO. He further emphasized the company’s unwavering resolve to innovate and expand the client base by persistently pursuing new market opportunities and reinforcing its dominance through strategic growth while making a profound societal impact.

Financial Horizons Expanded

When EQT was listed, its Board of Directors established ambitious financial targets, aiming to surpass the long-term growth rate of the private markets industry. The targets also included achieving an adjusted EBITDA margin within the 55-65% range and the realization of a progressively growing annual dividend expressed in absolute euro terms.

Since its listing, EQT has achieved an average annual revenue growth rate of around 40%, factoring in strategic acquisitions, and lifted its adjusted EBITDA margin to 58%. Furthermore, its dividend per share has seen an average annual upswing of 13%. These accomplishments reflect EQT’s dedication to sustainable growth and value creation, surpassing its set aspirations.

EQT today reiterates its commitment to elevating revenue growth and adjusted EBITDA margin targets, while adjusting its dividend growth expectations to reflect per-share metrics. The company has also offered a glimpse into its financial aims, predicting that the growth of management fees will outpace the overall growth of the private markets sector. Alongside sustained value creation, an upturn in exit activities is anticipated to yield significant realized carried interest.

The organization envisions periods where its adjusted EBITDA margin could surpass the established target range of 55-65%, particularly during years marked by substantial carried interest. Over time, EQT aims to stabilize its fee-related adjusted EBITDA margin within this target spectrum. Additional to forecasting a steadily increasing annual dividend per share, EQT may consider enhancing shareholder returns through additional cash distributions, share buybacks, or a blend of these actions.

EQT Capital Markets Day Resources

For individuals eager to explore EQT’s detailed presentation from the Capital Markets Day, the content is accessible on the Shareholder Relations section of the EQT website from 13:00 CET on 6 March 2024. Furthermore, a recording of the event will be available on EQT’s website starting 7 March 2024, ensuring comprehensive transparency and enhancing stakeholder engagement.

Inquiries and Additional Information

For additional details and shareholder-related inquiries, Olof Svensson, Head of Shareholder Relations, can be reached at +46 72 989 09 15. The EQT Press Office is also available for further press inquiries and can be contacted at [email protected], or by phone at +46 8 506 55 334.

Statistical References and Rankings

EQT's stature in the global context is supported by various industry benchmarks and rankings:

1. PEI 300 (2023) positions EQT as a leading entity in Private Equity, based on capital raised over the last five years ending on 31/03/2023.
2. II 100 (2023) highlights EQT’s achievements in Infrastructure, measured by direct investment capital raised between 01/01/2018 and 31/08/2023.
3. Realfin's state of the Market report (Global infrastructure 2024) acknowledges EQT as the top Value-Add fund manager by direct capital raised in the last five years.
4. PERE 100 (2023) ranks EQT within the top tiers for Private Real Estate investment, again based on direct capital raised from the beginning of 2018 to the end of March 2023.

Downloadable Resources

EQT provides additional resources for download, which serve to enrich the understanding of the company's operational and financial highlights, as well as strategic insights.

• Download PR CMD ENG PDF
• Access images of EQT CMD on 6 March 2024

These downloadable assets are designed to provide stakeholders with more profound insights into EQT's business trajectory and strategic planning.

Conclusion

EQT's roadmap to the future is marked by a steadfast commitment to innovation, performance, and impact. The emphasis on thematic investing, a model based on 'locals with locals' teams, and superior returns continues to be the driving factors behind EQT's success. As EQT moves into its fourth decade of operation, it does so with a laser focus on refining its platform and maintaining a leadership position across its core strategies, thereby ensuring it remains a trailblazer in the private market industry for years to come.

With the Capital Markets Day marking a significant waypoint in EQT’s corporate journey, the reaffirmation of financial targets and strategic goals sets the tone for sustained excellence and growth. As Christian Sinding eloquently articulated, EQT is committed to ongoing innovation, applying an industrial mindset to developing assets that are pivotal for a flourishing economy of tomorrow. As EQT looks to the horizon, it is armed with a robust plan for continuous value creation, promising an even brighter future for its clients, stakeholders, and the broader market landscape.

In an evolving global economy where change is the only constant, firms like EQT, fortified by a proven track record and clear vision, are well positioned to lead the way. As EQT presents its ambitions and financial markers of success, it stands not only as a celebration of past achievements but as an unwavering declaration of its journey ahead — a journey characterized by growth, innovation, and a steadfast dedication to success coupled with a positive societal impact. The sheen of the past 30 years is only a prelude to the radiance of what is yet to come for EQT.