EQT made the last investment from its €4 billion third infrastructure fund in a US midstream business. The news comes as its fourth fundraise, targeting as much as €9 billion, looks to wrap up in the next couple of months, a source familiar with the matter said.
Kodiak Gas Services, a Houston-based midstream company, is also EQT Infrastructure III’s first midstream investment. The vehicle, which closed in February 2017, has made six other investments, including four in the European and US telecoms sectors.
The firm declined to comment for this story and did not disclose transaction details.
The statement cited growing US oil and gas production as reason for backing Kodiak, and EQT said it plans to help expand the business. The Stephens Group, a family office, sold Kodiak to EQT, and current management will stay in place.
EQT’s fourth infrastructure fund, which is targeting €7.5 billion and has a €9 billion hard-cap, made its first investment last month in North American utility and telecoms maintenance company Osmos Utilities Services, according to the source. The vehicle is targeting telecoms, transportation and services assets.
The Swedish manager’s previous three funds are understood to be generating collective gross IRRs of 20-25 percent and a 3x money multiple. The first 2008-vintage €1.2 billion vehicle has been fully exited, while EQT Infrastructure II, which closed on €1.9 billion in 2013, has exited four of its 11 investments.