From Bloomberg via Advisor Perspectives, March 29:
EQT Raises €21.5 Billion for Its Latest Infrastructure Fund
EQT AB has raised €21.5 billion ($23.2 billion) for its latest infrastructure fund — a sum a top executive for the Swedish investment firm says underscores how the energy sector’s funding needs trump an uncertain market for deals.
“The capital need for the next 20 to 25 years to transform energy and digital systems is so large, and there are only about five competitors that are as substantial and large as us, so we don’t see any roadblocks to dealmaking,” Lennart Blecher, head of real assets at EQT, said in an interview.
“Energy transition is the strongest commercial trend since the beginning of industrialization,” he said. There is an estimated $275 trillion capital need over the next 25 years, he said.
EQT Infrastructure VI, which had targeted €20 billion, met its hard cap, according to a statement Friday. It includes €21.3 billion in fee-generating assets under management. The vehicle is about 35% larger than its predecessor, which closed at €15.7 billion in 2021.
Bullish dealmaking predictions have been rare with global activity slowing in the wake of sweeping policy changes in the US. Infrastructure should buck the tend, according to Blecher.
“Most of the infrastructure services we provide are to domestic populations, so we don’t currently expect to see a large impact from tariffs,” Blecher said in the interview. “People need energy and connectivity in good and bad times.”
While fundraising for infrastructure strategies has been relatively easier than raising money for buyouts, challenges are emerging as contributions from institutional investors are flatlining after years of large commitments.
EQT, which has €75 billion of global infrastructure assets under management, has been raising money for its latest fund since 2022 and has already closed 10 investments....
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