How Does EQT AB Company Work?

EQT AB Bundle

Get Full Bundle:

	PESTLE	$15	$10
	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

How does EQT AB operate?

EQT AB is a prominent global investment organization with a significant presence in private markets. In 2024, the company achieved record investment levels, deploying EUR 22 billion, a 27% increase from 2023.

EQT also accelerated its exit activities, with gross fund exits reaching EUR 11 billion, a 72% increase year-over-year. This demonstrates their effectiveness in generating substantial returns for investors.

As of March 31, 2025, EQT manages EUR 273 billion in total assets under management (AUM), with EUR 142 billion in fee-generating AUM. Their operations are structured across two main segments: Private Capital and Real Assets. The firm's global reach spans over 25 countries, covering Europe, Asia, and the Americas, with investments concentrated in sectors like healthcare, technology, and industrials. Understanding EQT's strategic approach, including its active ownership and thematic investment strategies, is key to appreciating its sustained success. For a deeper dive into the external factors influencing the company, consider an EQT AB PESTEL Analysis.

EQT AB's core operations center on its distinctive active ownership model, focused on investing in and developing companies to generate attractive returns for institutional investors. The company manages private equity, infrastructure, real estate, and venture capital funds, with investment strategies spanning from start-up to mature businesses.

Core Business Areas

EQT AB manages a diverse range of funds, including private equity, infrastructure, real estate, and venture capital. These funds cater to institutional investors seeking exposure to private markets.

Investment Strategy

The company employs a thematic investment approach, identifying long-term secular trends like digitalization and energy transition to guide its strategic investments.

Value Creation

EQT AB achieved a value creation of 18% in its key funds during 2024, driven by strong underlying sales and EBITDA growth.

Global Reach

With local teams in markets representing over 80% of global GDP, EQT leverages its extensive network for local insights and opportunities.

The EQT AB business model is built on a foundation of thematic investing, identifying and capitalizing on long-term secular trends. This approach is supported by a global operational platform that provides deep local market insights, crucial for navigating geopolitical shifts and demographic changes. EQT's value proposition to its investors is centered on delivering consistent, attractive returns over a 5 to 10-year investment horizon, achieved through active ownership and a commitment to future-proofing its portfolio companies. This includes a focus on sustainability initiatives and driving growth through its industrial network and expertise. The company's investment process explained involves rigorous due diligence and a hands-on approach to portfolio management, aiming to enhance operational performance and strategic positioning. For those interested in understanding EQT's strategic direction, a look at the Marketing Strategy of EQT AB can offer further insights.

Key Differentiators

EQT AB distinguishes itself through a unique blend of Nordic heritage and a global perspective. This combination fosters the development of resilient companies and assets.

• Active ownership model
• Thematic investment approach
• Global platform with local insights
• Focus on long-term value creation
• Commitment to sustainability

EQT AB SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

EQT AB's financial engine is primarily driven by management fees and carried interest, reflecting its core EQT AB business model as a global investment organization. The company has demonstrated robust growth, with total adjusted revenue reaching EUR 2,355 million in 2024, an 11% increase from the previous year.

Management Fees

Management fees form a stable revenue base, growing with the assets EQT AB manages. These fees increased by 7% in 2024, supported by a substantial EUR 142 billion in fee-generating assets under management as of March 31, 2025. The effective management fee rate has remained consistent at approximately 1.4%.

Carried Interest and Investment Income

Carried interest, a performance-based fee, significantly boosts EQT AB's earnings. In 2024, adjusted carried interest and investment income saw a remarkable 52% surge to EUR 251 million. Under IFRS reporting, carried interest was even higher at EUR 549 million for 2024.

Fund Performance Influence

The company's financial health is intrinsically linked to the expansion of its assets under management and the successful performance of its investment funds. This highlights the direct correlation between EQT AB's investment strategy and its revenue generation.

New Investment Strategies

EQT AB actively diversifies its revenue streams by launching new investment strategies. In 2024, this included the introduction of EQT Healthcare Growth and EQT Transition Infrastructure, broadening the scope of EQT AB operations.

Focus on Private Wealth

An enhanced focus on the private wealth sector is a key monetization strategy. EQT AB plans to offer five active evergreen vehicles in 2025, catering to both US and European/Asian markets, with EQT Nexus's Net Asset Value approaching EUR 1 billion.

Future Fundraising Outlook

These strategic initiatives are designed to attract a wider client base and secure diverse capital sources, positioning EQT AB for a new fundraising cycle targeting EUR 100 billion.

EQT AB's approach to how does EQT AB company make money is multifaceted, combining stable management fees with performance-driven carried interest. This dual approach is supported by continuous innovation in its EQT AB investment strategy, including the expansion into new sectors like healthcare growth and transition infrastructure, as well as a strategic push into the private wealth market. These efforts are crucial for sustaining the growth of EQT AB's assets under management and ensuring strong EQT AB fund performance, which are key indicators of the firm's overall success and its ability to attract capital for future EQT AB fundraising processes.

Key Revenue Drivers and Growth Initiatives

EQT AB's revenue generation is directly tied to its ability to grow its Assets Under Management (AUM) and achieve strong returns for its investors. The company's strategic focus on expanding its fund offerings and client base is central to its long-term financial success.

• Management fees are calculated based on committed capital or net asset value, providing a predictable income stream.
• Carried interest, typically 20% of profits above a certain hurdle rate, is a significant driver of revenue when funds perform well.
• The launch of new strategies, such as EQT Healthcare Growth and EQT Transition Infrastructure, diversifies EQT AB's investment portfolio and attracts new investor capital.
• Expansion into the private wealth segment, with dedicated evergreen vehicles, broadens the investor base and capital sources for EQT AB.
• The company's global presence and offices facilitate access to diverse markets and investment opportunities, supporting its EQT AB business model.
• EQT AB's commitment to sustainability initiatives and impact investing approaches can also attract a growing segment of investors, influencing fundraising success.
• Understanding the Target Market of EQT AB is crucial for tailoring its investment strategies and fundraising efforts.

EQT AB PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

EQT AB has demonstrated significant growth and strategic adaptation, marked by substantial fundraising achievements and expansion into new investment areas. The firm's ability to navigate market complexities while increasing investment and exit activity underscores its robust EQT AB business model.

Fundraising Successes

In 2024, EQT X closed as the largest private equity fund globally for the year, securing EUR 22 billion. This was followed by the Q1 2025 closure of EQT Infrastructure VI at EUR 21.5 billion, surpassing its target by 35%.

Strategic Expansion and Focus

EQT launched new strategies in 2024, including EQT Healthcare Growth and EQT Transition Infrastructure. The firm also significantly enhanced its focus on private wealth, planning for five active evergreen vehicles by 2025.

Market Resilience and Investment Activity

Despite market challenges in 2024, EQT returned to record investment levels, deploying EUR 22 billion. Exit activity increased by 72% to EUR 11 billion, including a record number of exit events.

Competitive Advantages

EQT's competitive edge is built on its strong brand, global scale, and thematic investment approach. It is the second-largest private equity firm globally by capital raised and Europe's largest alternative investment platform.

EQT AB's Differentiating Factors

EQT's 'active ownership' model, supported by its industrial network, drives portfolio company growth and sustainability. This approach, combined with a strong commitment to ESG, sets it apart in the market.

• Active ownership model
• Global scale and reach
• Thematic investment approach
• Commitment to sustainability

EQT's strategic moves include acquisitions such as Equitrans Midstream Corporation in March 2024 and Crown Castle's small cells business in March 2025 for $4.25 billion. The firm also acquired Europa Biosite in July 2025, showcasing its continuous expansion and focus on key growth sectors. EQT's commitment to sustainability is notable, with over 60% of its invested capital in portfolio companies having validated science-based targets by the end of 2024. The firm is also leveraging artificial intelligence through its Motherbrain team to enhance portfolio company performance, aligning with its Growth Strategy of EQT AB.

EQT AB Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

EQT AB holds a significant position in the global private markets, ranking as the second-largest private equity firm by capital raised and the largest alternative investment platform in Europe as of July 2025. With EUR 273 billion in assets under management as of March 31, 2025, EQT demonstrates strong client loyalty and a broad global reach across over 25 countries.

Industry Position

EQT AB is a leading player in the global private markets, recognized as the second-largest private equity firm worldwide by capital raised. It also stands as Europe's largest alternative investment platform, managing EUR 273 billion in assets as of March 31, 2025. This scale allows EQT to attract substantial client commitments, even during challenging fundraising periods.

Key Risks and Headwinds

The firm faces risks from geopolitical uncertainty and volatile capital markets, which can affect exit opportunities and fundraising. While EQT's diversified portfolio, including healthcare, software, and infrastructure, offers some resilience, a significant market downturn could impact fund valuations. The broader fundraising market may not recover to 2021 levels until 2027.

Future Outlook and Strategy

EQT is actively pursuing growth through a new EUR 100 billion fundraising cycle, including the launch of EQT XI targeting EUR 23 billion. The firm is also expanding its private wealth segment with multiple evergreen vehicles planned for 2025. Strategic acquisitions and organic growth, particularly in North America and Asia, are key to strengthening its platform.

Strategic Focus Areas

EQT's investment strategy centers on thematic megatrends like digitalization and energy transition, areas expected to experience structural growth. With over EUR 50 billion in dry powder as of Q1 2025, EQT is well-positioned to capitalize on future investment opportunities and navigate market complexities, aligning with its Mission, Vision & Core Values of EQT AB.

EQT AB's Growth Capital and Investment Strategy

EQT AB's business model is built on generating returns through strategic investments across various private market segments. The firm's EQT AB investment strategy focuses on identifying and nurturing companies within structural growth themes, aiming for long-term value creation.

• EQT AB operations span private equity, infrastructure, and real estate globally.
• The firm's EQT AB investment process explained involves deep sector expertise and active ownership.
• EQT AB portfolio companies overview showcases a diverse range of businesses benefiting from EQT's capital and strategic guidance.
• EQT AB growth capital is deployed to support companies in scaling their operations and market reach.

EQT AB Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔