EQT AB is seeking more time to close its next flagship buyout fund, people with knowledge of the matter said, amid a difficult fundraising environment for private equity firms.
(Bloomberg) — EQT AB is seeking more time to close its next flagship buyout fund, people with knowledge of the matter said, amid a difficult fundraising environment for private equity firms.
The Swedish investment firm is planning to extend the deadline for closing the fund from August to February 2024, the people said. It has so far raised about €18 billion ($19.6 billion) for the vehicle, which has a target of €20 billion and a hard cap of €21.5 billion, according to the people.
Moving the deadline will allow EQT to give new investors extra time to finalize their subscriptions, as well as let the firm bring more private wealth platforms on board, some of the people said.
No final decisions have been made, and EQT could still close the fundraising sooner, the people said, asking not to be identified because the information is private. A spokesperson for EQT declined to comment.
EQT is raising its 10th flagship fund at a time when investors are becoming more selective about the managers they back and questioning the speed at which private equity firms are returning to market with new vehicles. Recession fears and tightening financing markets are weighing on private equity dealmaking, with firms struggling to seal acquisitions.
Chief Executive Officer Christian Sinding said in April that the fundraising environment “continues to be challenging” and that flagship funds are taking longer to raise. He said at the time that the firm expects the fundraising for the 10th fund to be “materially completed” during the summer.
EQT managed total assets of €216 billion at the end of the first quarter. Earlier this month, it agreed to purchase UK veterinary drugmaker Dechra Pharmaceuticals Plc for almost £4.5 billion ($5.7 billion) in the biggest European take-private this year.
Read More: EQT Chief Predicts Major Private Equity Consolidation Wave
(Adds detail on EQT assets, deal in final paragraph.)
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