EQT (EQT) H1 2024 earnings summary

Executive summary

• EQT X, EQT Future, and Asia Mid-Market Growth Fund closed at or above targets, driving over EUR 26 billion in inflows and fee-paying AUM to EUR 133 billion.

• Investment activity remained robust with EUR 12 billion invested and EUR 4 billion in realizations, including significant exits and IPOs.

• Revenues grew 7% year-over-year, with management fees up 13%; carried interest was lower due to muted exits.

• Market backdrop is improving with lower inflation and interest rates, but geopolitical and liquidity risks persist.

• Focus on operational efficiency, scaling, and client platform enhancements, with new strategies and product launches underway.

Financial highlights

• Adjusted revenue rose 7% year-over-year to EUR 1,088 million, with management fees at EUR 1,047 million.

• Adjusted EBITDA increased to EUR 609 million (56% margin), and adjusted net income reached EUR 500 million.

• Fee-paying AUM reached EUR 133 billion, mainly driven by inflows into EQT X and Infrastructure VI.

• Net debt stood at EUR 1,194 million, with net debt/adjusted EBITDA at 0.9x.

• Infrastructure funds saw strong performance, with some up 10% year-to-date; overall key funds delivered approximately 5% value creation in H1.

Outlook and guidance

• Fundraising for Infrastructure VI expected to conclude in 2024, targeting EUR 20 billion.

• BPEA IX fundraising to launch mid-August, with activation in H1 2025.

• Fund cycles for flagship funds expected to remain at 3 to 3.5 years, balancing diversification and liquidity.

• Continued cost and headcount growth anticipated in H2 2024 to support private wealth and branding initiatives.

• Fee-related EBITDA margin target remains 55%-65% over the mid to long term.