Wallenberg’s private equity seeks a stock market listing

Swedish buyout group EQT announced its intention to seek a stock market listing in Stockholm in a rare recent move from a private equity company to float its shares. EQT, which was founded by the Wallenberg family of industrialists in 1994 and has grown to become one of Europe’s biggest private equity groups, is seeking to sell about a fifth of its shares in a listing that could value it at about €4 billion. At least €500 million in fresh equity will be raised while existing shareholders — Investor, the Wallenberg investment vehicle, owns 23 per cent while EQT’s partners own the rest — will sell down their stakes pro rata… EQT would become the first private equity company to list for several years after a difficult experience for those few that have already floated… EQT had €40 billion of assets under management as of the end of June and said they had increased 23 per cent a year since its founding. It added that it expected assets under management for the private equity industry as a whole to increase 10 per cent a year in the future, compared with 15 per cent growth in 2012-16… In the first six months of 2019, EQT said its revenues rose by two-thirds from a year earlier to €295 million, while underlying net profit more than doubled to €110 million. 

Richard Milne