EQT has raised €845 million for its EQT Credit II fund, exceeding the fund’s target of €750 million, according to a press release. The fund intends to invest primarily in stressed and distressed situations, including the debt of companies that may face challenges created by excess leverage or the need for additional capital. As such, it will continue the strategy employed by EQT Credit I and EQT V Credit Carve-Out.
Commitments for the fund, which is now closed, have come from new and existing investors, with more than 90% of this latter group committing to the new fund. Roughly 55% of EQT Credit II commitments have been raised from the Nordic region, with 20% from the rest of Europe, and 25% from the Americas. This is a broader investor base compared with that of the preceding fund, for which the investor base was predominantly Nordic.
Breaking down the investor group, pension funds and insurance companies account for more than 60% of the commitments in the fund. EQT Credit II is backed by a number of well-regarded international institutional investors including Access Capital Partners, Andrew W. Mellon Foundation, AP4, Finnish State Pension Fund (VER), Gamla SEB Trygg Liv, Lancashire County Pension Fund, Massena Capital Partners, OFI Asset Management, Sampo, and Talanx Asset Management, according to the release.
The fund intends to be a medium-term investor with a bias towards Northern Europe and illiquid or mid-market situations. Furthermore, it will seek to make investments relating to companies that it believes are operationally sound and will have consistent cash flows and/or meaningful intrinsic value.
Headed by Paul de Rome, the EQT Credit Team comprises 11 investment advisory professionals based in London and Stockholm. – Staff reports