EQT brings Nordic nous to Aussie private investors

The world’s third-largest private equity investment firm, the Sweden-based EQT, has announced the Australian launch of its dedicated private markets fund for high-net-worth individuals – EQT Nexus.

Debuting in the Nordics in May this year, the launch of the ‘open-ended’ fund promises Australian wholesale investors access to the same portfolio and deal flow as EQT’s institutional investors, effectively providing access to EQT’s range of investment strategies through a single investment.

According to EQT, the Nexus fund invests in a range of EQT funds spanning mature buyouts to early-stage investing and covers a range of geographies and industries. Nexus also co-invests in companies alongside EQT’s funds.

Australia is one of the first markets to go live with Nexus in EQT’s global rollout after its debut launch in the Nordics in May this year.

Martin Donnelly, Head of EQT’s capital raising efforts in Australia, said the local launch of the Nexus fund is “in response to growing demand from Australian wholesale investors, financial advisers, private banks and family offices for diversified private asset solutions”.

“Australian wholesale investors, along with their advisers and key groups like family offices, are strategically shifting towards alternative investments as they seek diversification and superior returns.”

He added that with “public markets narrowing, private assets offer new avenues for constructing resilient portfolios and offer access to the significant value creation that occurs outside of public markets”.

Peter Beske Nielsen, EQT partner and global head of wealth said the “growing attraction of private markets also lies in expanded access to a spectrum of strategies, from promising early-stage ventures to mature and market-leading companies.”

“EQT Nexus is off to a strong start from both a performance and inflow perspective. With the introduction of EQT Nexus in Australia, we are delighted to extend the opportunity to wholesale investors to access EQT’s active ownership approach and unwavering commitment to performance,” Nielsen said.

Citing data from Investment Trends, EQT notes that Australian high-net-worth individuals hold nearly AUD$3 trillion in investable assets.

It added that individual investors’ allocation to private markets is projected to surge by 12% annually over the next decade.

Since inception, 73% of all EQT funds’ returns can be attributed to increased sales and profit margins, 25% can be linked to strategic repositioning efforts, while just 2% is a result of debt reduction.

Australian investors can invest in EQT Nexus via a dedicated feeder fund, with Channel Investment Management serving as trustee.

EQT is the world’s third-largest private equity firm, with AU$371 billion in total assets under management. EQT notes that it has a team of around 50 people focused on its private wealth arm.