EQT (EQT) Q3 2024 earnings summary

Executive summary

• Launched BPEA IX with a USD 12.5bn target, a 20% increase over its predecessor, and continued strong fundraising for EQT Infrastructure VI (EUR 17bn closed, EUR 20bn target) and EQT Active Core Infrastructure (USD 3.2bn final close).

• Achieved record investment activity YTD, investing EUR 18bn and offering EUR 5bn in co-investments, with a robust deal pipeline and over 20 exit events YTD 2024.

• All key funds performed on or above plan, with value creation of 4% in Q3 and nearly 10% YTD, driven by healthy earnings growth and positive valuation developments.

• Expanded private wealth offerings, active hiring in strategic areas, and new product launches, including evergreen and retirement plan products.

• Continued innovation in digitalization and AI, with nearly 50 portfolio companies validating science-based targets.

Financial highlights

• Fee-paying AUM at end of September was EUR 134bn, up from EUR 128bn YoY; total AUM reached EUR 246bn.

• Gross inflows reached EUR 3bn in Q3 and EUR 14bn LTM, with EUR 6bn of investments and EUR 3bn in exits in Q3.

• Dry powder stands at approximately EUR 50bn.

• Fund performance in key funds averaged 4% for the quarter and nearly 10% YTD, with infrastructure vintages up more than 10% YTD.

• Exits in key funds over the last 12 months realized at an average gross MOIC of 2.5x; major fund multiples ranged from 1.1x to 2.7x.

Outlook and guidance

• Expect to launch fundraisings totaling around EUR 100bn in the next cycle, including flagship and new strategies, with a three-year fundraising cycle anticipated.

• BPEA IX activation expected in H1 2025, EQT XI in early 2026, and Infra VII mid-2026, with fundraising starting ahead of activation.

• Private wealth products targeted to grow from 10-15% to 15-20% of fundraising, with significant product development and expansion to five products within 6-12 months.

• Exit pipeline remains active, but volumes will depend on market conditions; readiness to be patient if conditions deteriorate.

• Strategic focus on global expansion, new distribution sources, and scaling the client base.