Private Equity Firm EQT Seeks to Fill ‘White Spaces’ in Strategy

EQT AB is looking to make selective additions to its suite of investment strategies, amid a quickening wave of consolidation in the private equity industry.

(Bloomberg) — EQT AB is looking to make selective additions to its suite of investment strategies, amid a quickening wave of consolidation in the private equity industry.

“Our strategy is more focused on filling white spaces, rather than bulking up on areas we already operate in,” EQT Chief Executive Officer Christian Sinding said in an interview Tuesday in London. 

“We’re in the early stages of exploring new strategies that further build on our leadership in areas such as health care within private equity,” he said.

EQT shares fell as much as 9.1% in Stockholm trading Tuesday after the firm said in a third-quarter report that fundraising is taking longer than before. Bloomberg News reported in June that EQT was seeking more time to close its next €20 billion ($21 billion) flagship buyout fund.

After a decade of throwing money at the private equity industry, investors are becoming pickier about where they allocate their cash. They’re increasingly turning to firms that can offer a broad suite of strategies in a “one-stop shop” model. 

Sinding said earlier this year these fundraising challenges would fuel more consolidation in the private equity industry. EQT has itself acquired health-care focused venture capital firm LSP and Baring Private Equity Asia in recent years. 

On Tuesday, Sinding said EQT was also focused on investing more in next-generation infrastructure, comprising everything from the electric vehicle value chain to the internet of things. Rivals including Bridgepoint Group Plc and CVC Capital Partners have recently acquired infrastructure specialists to tap strong investor demand for the sector. 

Read More: The Rise of Private Equity’s One-Stop Shops

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