Swedish firm EQT AB received more than $10 billion in investor commitments for its latest pan-Asia private equity fund, putting it on track to reach its fundraising goal despite the market volatility.
The Stockholm-listed group said it plans to announce the first close of the BPEA Private Equity Fund IX next week, according to an emailed statement on Wednesday. The fund could hit its $12.5 billion fundraising target by the summer, with the so-called hard cap of $14.5 billion slated for later this year.
EQT also said it had taken about eight months to near the full target for the fund, compared to the 24-month average cycle for the industry.
Conditions for raising funds in private capital have become increasingly bifurcated as investors opt for either large asset managers with a range of strategies or specialist firms focused on niche markets. Some are doubling down on their relationships with top performers and cutting down on others as they seek to mitigate a slowdown in returns.
Elsewhere, investment firm Ardian SAS delayed a planned fundraising for its multi-billion flagship fund amid a restructuring of its buyout team, Bloomberg News reported last week. European mid-market buyout firm Equistone Partners Europe stopped raising money for a fund after failing to reach its initial goal of around €2.5 billion ($2.8 billion), Bloomberg News reported in January.
Separately, EQT shares slid as much as 8.5% on Wednesday after the private equity firm gave cautious guidance on realizing returns for its portfolio companies.
“EQT expects a material slow down in exit activity given the recent deterioration in market conditions and elevated uncertainty across global markets,” the company said in its first-quarter earnings update.
The firm’s asset under management totaled €142 billion at the end of the period, beating the average analyst estimates. The investment group is also planning to launch a US evergreen product during the summer using two global distributors.
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