EQT (EQT) H1 2024 earnings summary

Executive summary

• EQT X, EQT Future, and Asia/BPEA EQT Mid-Market Growth funds closed, 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 and carried interest lower at EUR 40 million due to muted exit volumes.

• Focus on operational efficiency, scaling, and client platform enhancements, with margin improvements and new strategies in preparation.

• Continued expansion with new offices in Warsaw and Bengaluru, and new product launches in healthcare growth and infrastructure.

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 from inflows into EQT X and Infrastructure VI.

• Net debt to EBITDA at 0.9x, with EUR 1.5 billion revolving credit facility and EUR 806 million in cash.

• S&P and Fitch assigned A- (Stable) credit ratings.

Outlook and guidance

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

• Fund cycles for flagship funds expected at 3 to 3.5 years, with realization volumes anticipated to pick up as market conditions improve.

• Higher costs and headcount expected in H2 2024 due to investments in private wealth and branding.

• Fundraising market remains challenging until significant liquidity is returned to clients.