Peter Beske Nielsen

Global investment organisation EQT has announced the Australian launch of EQT Nexus – an open-ended fund2 that will give Australian wholesale investors access to the same portfolio and deal flow of EQT’s institutional investors.

EQT Nexus invests in a range of EQT funds spanning mature buyouts to early-stage investing across geographies and industries, with a focus on EQT’s flagship Private Equity and Infrastructure strategies. It will also co-invest in companies alongside EQT’s funds.

Following its successful launch in the Nordics in May 2023, Australia is one of the first markets to go live in a global rollout – a reflection of EQT’s focus on Australia as a fast-growing sophisticated investor market.

Recent data shows that Australian high-net-worth individuals hold nearly AUD$3 trillion in investable assets3. At the same time, individual investors’ allocation to private markets is projected to surge by 12 per cent annually over the next decade.4 The move comes as the private asset industry is also projected to quadruple by 20405, driven by investors’ desire for superior returns relative to those typically achieved in the public markets.

Martin Donnelly, Head of EQT’s capital-raising efforts in Australia, said, “The EQT Nexus launch in Australia 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. 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”.

Private individual investors have historically faced large barriers to entry when looking to invest in private markets, due to a variety of factors including high investment minimums, complex liquidity arrangements, and longer lockups. EQT Nexus seeks to address these challenges by enabling investors to access EQT’s strategies through a fully funded single investment, supported by a transparent fee structure.

Future-proofing companies and making a positive impact

EQT’s original motto “more than capital”, means that, in addition to investing capital, EQT provides companies with hands-on operational support, industry expertise, sustainability and digitalisation capabilities, and global networks. EQT’s funds have a clear focus on investing in businesses and assets that can have a positive impact on society or the environment and seek to demonstrate that it is possible to contribute positively without compromising on returns.

EQT’s Nordic values and distinct corporate culture stem from its foundation in 1994 with backing from the Investor AB, the investment company founded by the prominent Wallenberg family of industrialists. With a 160-year heritage spanning five generations, the Wallenbergs, via Investor AB, control large stakes in Swedish multinational companies, such as ABB, AstraZeneca, Atlas Copco, Electrolux, Epiroc, Ericsson, Husqvarna, SAAB, and EQT.

Peter Beske Nielsen, Partner and Global Head of Wealth at EQT, said, ”A driving force in financial markets was the increasing prevalence of companies choosing to remain private for extended periods. This fosters a deeper cultivation of value within the private sphere, which we believe means that the private markets can outperform their public counterparts.”

“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. This transformation, we believe, underlines the growing significance of private markets in shaping the future of global finance. After having launched in the Nordics in May, EQT Nexus is off to a strong start from both from 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.”, said Peter Beske Nielsen.

EQT’s focus on future-proofing6 companies is demonstrated by the returns achieved by EQT’s funds. 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 a mere 2% is a result of debt reduction.

Icon Group, Australia’s leading integrated cancer care provider, stands as a testament to this approach. Since EQT’s acquisition in 2021, Icon Group has delivered strong and sustainable growth, expanding operations across New Zealand, Singapore and China. The group’s plans include entering the UK market and the delivering new state of the art centres and compounding facilities, underscoring its commitment to advancing comprehensive cancer care solutions. Another example is Levande, a leading owner and operator of around 60 retirement villages across Australia, providing community living and home care support services to more than 10,000 residents. The company was formed after EQT acquired Stockland’s Retirement Living business in a carve-out transaction in 2022.

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