EQT Partners AB
EQT Partners AB: EQT establishes holding company in Sweden for operations and new funds
EQT Partners AB / Key word(s): Private Equity
EQT establishes holding company in Sweden for operations and new funds – EQT will organize all activities under one holding company – EQT Holdings AB – EQT has grown to become a major owner in many economies, which increases the requirements for openness and clear governance. The establishment of EQT Holdings AB, demonstrates EQT’s ambition to meet these requirements, following last year’s decision to manage all funds established in 2012 and onwards onshore in Europe – Investor AB will be a shareholder in the new holding structure together with partners of the investment advisor EQT Partners EQT has implemented a new corporate structure in order to better align with various stakeholders. The new structure will facilitate growth, as well as increase transparency and secure a solid, long-term financial platform. The aim is to make EQT an even more trusted owner. It is envisaged that going forward, operations, fund administration and investments in general partners will be brought together under EQT Holdings AB, a company based in Stockholm, Sweden. Conni Jonsson is CEO of EQT Holdings AB. Currently, EQT consists of 15 funds with a combined committed capital of EUR 20 billion. In 2012, sales of EQT’s 49 portfolio companies increased on average by 11% compared to 2011 and EBITDA increased by an average of 10%. By the end of 2012, the number of employees stood at more than 550,000. ‘Since the start of EQT Partners in 1994 and the first EQT fund raised in 1995, there has been strong growth. In order to support the future growth and to become an even more trusted owner, a new efficient and transparent corporate structure has been established. EQT Holdings AB will have an independent Board of Directors and a Nordic governance structure. This is a natural step following the decision to manage all funds established 2012 and onwards onshore in Europe, in places such as the Netherlands, Luxembourg and the UK. Our ambition is to secure trust and demonstrate co-operation with all stakeholders in addition to delivering good returns to EQT’s investors. In the future, we would like it to be possible to establish EQT funds also in the Nordic countries,’ says Conni Jonsson, CEO of EQT Holdings AB and co-founder of EQT Partners. The new structure enables EQT Holdings AB to accumulate a sustainable and long-term financial reserve for stable organic expansion and a buffer across business cycles. EQT Holdings AB will be 81% owned by partners of the investment advisor EQT Partners. The remaining 19% will be owned by Investor AB. Investor AB will exchange its current 31% in EQT Partners AB for the ownership stake in EQT Holdings AB. The owners of EQT Holdings AB will jointly appoint a new board for EQT Holdings AB. This process is currently underway and the board will consist of senior and experienced international industrialists. Fund managers established from 2012 and onwards will be part of the new structure. Older funds retain the former structure. ‘By making these changes, it not only secures a platform for future growth, but I believe we are also taking a lead in moving EQT further towards alignment with current values and requirements in society, for better transparency, accountability and performance,’ says Conni Jonsson. Investor AB’s and the partners’ ownership in EQT Holdings AB is subject to required regulatory approvals and notifications. Funds launched since the beginning of 2012 are managed in the Netherlands, the UK and Luxembourg. EQT Holdings AB, based in Stockholm, Sweden is the parent company of these general partners/fund managers. This means that EQT applies a corporate structure with transparency for all stakeholders, unique in the private equity industry. End of financial news 04.06.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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