EQT Growth is a Swedish private equity firm that recently opened the largest first-time growth fund in Europe. Its new €2.4 billion fund was openned recently.
EQT Growth’s plans to invest large amounts of money in 20 to 25 European and Israeli companies. These are referred to as scaleups, which is short for startup companies with scalable business models. They plan to provide these companies with checks between $50 million and $200 million. Supposedly, they also plan to hold stakes between 5% and 40% in these businesses. This highlights the demand from investors for these investment plans.
Their plan is to support four tech sectors with strong enterprise, consumer and climate change focused companies.
Seven companies — Epidemic Sound, Mambu, Vinted and others — are part of the fund’s portfolio due to its large capital supply. Over two-thirds of the fund’s capital is available for investment.
EQT Growth is an investment fund belonging to EQT. The company recently announced the creation of a $225 million fund for Europe and Israel tech startups. Marc Brown is the fund’s partner and head of advisory team. He said, “The European and Israeli tech ecosystem has developed rapidly over the past decade. However, many firms have had to leave because there isn’t sufficient growth-stage capital or expertise from European investors. With this new fund, EQT Growth hopes to change that by partnering with a select few tech champions from Europe and Israel. They plan to help these companies grow into globally recognized brands.”
Per Franzén, the Head of Private Capital and deputy Managing Partner at EQT, said “the recently closed Europe-based first-time growth equity fund is the largest ever raised in the region.” According to him, this demonstrated strong faith from investors in EQT’s thematic investment strategies and active ownership approach. Many of these investors were already supporters of previous EQT funds, which demonstrated their continued trust in the company.
Proprietary AI-Driven Investment Platform
EQT had approximately $77 billion worth of assets under management spread across 36 active funds as of June this year. The company was founded by Conni Jonsson in Sweden in 1994.
EQT Growth’s Motherbrain platform is powered by artificial intelligence and makes every investment decision. It’s coupled with EQT’s many in-house experts — including dedicated teams for digitisation, sustainability, and capital markets. This makes EQT Growth’s approach of value-add enhanced by Motherbrain.
Investors from Europe, Asia, North America, the Middle East and a variety of pension funds, sovereign wealth funds and asset managers back the fund.