EQT targets €5bn for new longer-hold vehicle

EQT Active Core Infrastructure marks the firm's second attempt at a core offering and will target lower risk and lower return investments.

EQT has set a target of €5 billion for its new, longer-hold core infrastructure offering, the Swedish group has confirmed in its 2021 annual report.

EQT Active Core Infrastructure was described by the firm in a statement as “a new thematic longer-hold strategy”, in contrast to its 12-year flagship infrastructure funds, the fifth of which closed on €15.7 billion in November.

EQT revealed plans to launch the vehicle last year, when chief executive Christian Sinding said the vehicle would have “slightly lower returns with lower risk, with strong value creation over the long term”. Alongside a longer-term private equity fund also being launched, Sinding said at the time EQT expects the two funds to constitute about €10 billion of AUM over the medium term.

The move marks EQT’s return to longer-term, core infrastructure after it scrapped plans in 2015 to launch an open-end fund. It initially planned to raise between €500 million and €1 billion, before growing this to several billion, Infrastructure Investor reported at the time.

It is one of a number of major infrastructure managers pivoting to longer-term or core offerings. Although initial moves were made a few years ago by Macquarie Asset Management and Brookfield Asset Management with their respective super core funds, they have been followed since by the likes of KKR, Morrison & Co and Northleaf Capital Partners. Sources have told Infrastructure Investor that Stonepeak, with the hiring of Daniel Wong, and Global Infrastructure Partners are planning similar offerings.

EQT declined to comment for this story.