EQT (EQT) CMD 2024 summary

Strategic direction and growth ambitions

• Targeting $100 billion in capital raised in the next fundraising cycle, up from $75 billion previously, with growth driven by existing and new strategies, including infrastructure transition and digital infrastructure.

• Private wealth is a major growth focus, aiming to increase its contribution from under 10% to 15–20% of total capital over time, with plans to have five active private wealth products within 6-12 months and expand offerings in North America.

• North America and Asia are identified as the largest growth opportunities, with significant under-penetration, expansion in client base and assets under management, and plans to expand product offerings and client base in these regions.

• Thematic investment approach centers on long-term trends such as energy transition, digitalization, healthcare, and live experiences, with a strong emphasis on sustainability and active ownership.

• Actively developing new liquidity solutions, such as private IPOs and thematic investment mandates, to meet evolving investor needs and market dynamics.

Financial performance and targets

• Management fees grew 292% from €539m in 2019 to €2,083m in June 2024, with a diversified base of long-term contractual fees.

• Revenues have quadrupled and client base tripled since IPO, with market cap increasing by 500% to around $40 billion.

• Maintains long-term financial targets: EBITDA margin of 55–65%, faster-than-market growth, and a growing dividend stream.

• Substantial carried interest potential, with c. €8.5bn yet to be realized from current key funds if performing on plan.

• Will consider share buybacks in years of significant cash carry to augment dividends.

Business model and operational approach

• Differentiated by active ownership, local teams in every market, and a hands-on value creation playbook focused on governance, talent, and sustainability.

• No plans to enter private credit, maintaining focus on sectors where active ownership can drive value.

• AI and data science (Motherbrain) are integrated across the investment lifecycle, enhancing sourcing, diligence, and operational efficiency.

• Real estate and infrastructure businesses leverage local expertise and cross-platform synergies, with a decentralized operating model.

• Culture and values—transparency, informality, high performance, entrepreneurship, and respect—are central to talent attraction and retention.