EQT is pleased to announce the final close of EQT Growth (the "Fund") above its EUR 2 billion target, raising EUR 2.2 billion in fee-generating assets under management (AUM) and total commitments of EUR 2.4 billion. As the largest first-time growth fund based in Europe, the raise underlines the strong investor demand for EQT Growth's thematic investment strategy and active approach to unleashing sustainable growth in Europe and Israel's leading technology companies.
EQT Growth was launched to support fast-growing technology companies, especially in Europe and Israel, as they continue to scale. Having invested in technology for nearly three decades, EQT sees the large opportunity for a growth investor with European roots and local expertise and capabilities to help elevate the region's tech innovators to the world stage. Investment in European technology companies has grown vastly, increasing from around USD 20 billion in 2017 to over USD 100 billion in 2021, but European-based investors only made-up 30 percent of investors in growth-stage rounds in 2021.
The strategy seeks to invest around EUR 50 million to EUR 200 million, backing strong management teams of companies supported by secular macro trends primarily within four tech sub-sectors: enterprise, con/prosumer, health, and climate. It explores opportunities at the point where companies have achieved product-market fit and are taking the next step to scale. The Fund, which still has over two-thirds of capital available, has made seven investments to date and already includes some of Europe's most innovative companies in its portfolio, such as Epidemic Sound, Mambu and Vinted.
With a team based in five countries across Europe, EQT Growth's local presence ensures direct access to many of the continent's most-established tech hubs. The diverse team has extensive investing and operating experience, which makes it well positioned to actively collaborate with CEOs and management teams on their company's growth journey. When combined with a focus on sustainability - initiatives include requiring portfolio companies to set greenhouse gas emission reduction targets validated by the Science Based Targets initiative - EQT Growth is a very attractive partner for companies committed to long-term, responsible growth.
EQT Growth's value-add approach is enhanced by Motherbrain, EQT's proprietary AI driven investment platform that is designed to enhance every decision in the investment process. It also benefits from EQT's broad suite of inhouse experts, which includes dedicated digitization, sustainability and capital markets teams.
Marc Brown, Partner and Head of EQT Growth's Advisory Team, said: "The speed at which the European and Israeli tech ecosystem has developed over the past decade is a testament to the number of innovative, young companies that call the region home. However, a lack of growth-stage capital and European investors with scale-up expertise has meant that many of these firms have gone elsewhere when embarking on the next step of their journey. With this fund, EQT Growth has the experience, expertise and now capital to change this. We're excited to actively partner with a select group of Europe and Israel's tech champions to help drive them to the world stage."
The Fund is backed by a global and diverse group of investors including pension funds, sovereign wealth funds, asset managers and high-net-worth individuals from across Europe, Asia, North America and the Middle East.
Per Franzén, Head of Private Capital and Deputy Managing Partner at EQT, said: "Closing the largest ever first-time growth equity fund raised in Europe clearly illustrates the demand for EQT's active ownership approach and thematic investment strategies. In a strong vote of confidence for our multi-strategy approach, the fund received support from a significant portion of investors in existing EQT funds. We are honored by their ongoing support and look forward to continuing to earn their trust."
Notes to editors
Total commitments include funds raised from EQT employees and the EQT Network, which are not fee-generating.
[2 ]Source: Preqin database.
Source: Atomico, State of European Tech Report, 2021.
Growth-stage rounds defined as EUR 50 million plus raised. Source: EQT Motherbrain.