EQT partners raises €475m expansion capital fund

As revealed by PrivateEquityOnline earlier this month, EQT Partners has closed its latest fund over a third above its initial expectations, at the same time rebranding the former mezzanine debt investment team as an expansion capital buyout group.

Nordic buyout firm EQT Partners has raised €475 million ($637 million) for its second mezzanine fund breaking its original target of €350 million and at the same time re-focusing the business on an expansion capital strategy.

It is the largest mezzanine and equity focused fund in the region.

Michael Föcking, senior partner of EQT Partners, said: “The new name highlights our intention to support the expansion plans of mid-sized companies and to differentiate from standardised and rather inflexible mezzanine products. Furthermore, the new name supports our equity-oriented investment philosophy.”

Institutional and high net worth investors committed to the fund on the strength of EQT’s first fund. The firm said in a statement the fund will provide capital to family owned mid-sized companies seeking financing for acquisitions, to aid organic growth or to change the shareholder structure.  It will also provide subordinated capital to mid-market leveraged buyouts. Both facilities will be focused on the Nordic region and German speaking countries.

PEO revealed earlier this month the fund was set to close two and a half times the size of its previous fund. EQT has closed the fund adding a €25 million commitment from its advisory board of industrial executives. 

MVision acted as placement agents on the EQT fundraising.

Scandinavian fundraisers have been active of late, as rival Nordic buyout firm Litorina Kapital held the first close on its third fund today at SEK 843 million (€93 million, $124 million).