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EQT closes China fund on $545m

The Nordic firm is fast transforming itself into a alternative asset powerhouse with mezzanine and special situation funds to complement its buyout business and has underlined its territorial expansion with a second China fund.

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EQT, a private equity group with operations in Greater China and Northern Europe, has received commitments of $545 million for its EQT Greater China II fund. It is focussed primarily on mid-market buyout and control investments based in or connected with China, Hong Kong and Taiwan.

Investors from a broad range of global institutional investors, family offices and endowments from the US and Europe have committed to EQT Greater China II.

In addition, Investor, the quoted investment arm of Swedish industrialists the Wallenberg family, has committed at least $200 million to the Fund.

EQT Greater China II will be one of the Greater China region’s largest mid-market funds focused specifically on control investments, and is a continuation of the strategy established by Investor Capital Partners – Asia Fund, the predecessor fund which closed in 2000.

The fund will invest in companies where EQT, in partnership with management, can create a specific industrial angle and deploy its unique industrial know-how and network of senior industrialists, to accelerate growth, and create value, the firm said.

It will focus on the fast growing sectors of branded consumer products and services, retail & distribution, pharmaceuticals and manufacturing.

MVision Private Equity Advisers acted as global placing agent and Clifford Chance was legal counsel to EQT Greater China II.