eqt annual review 2016 · 2017-06-02 · i dare to say that we had the crème-de la crème of...

E Q TA N N U A L R E V I E W

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CONTENTS

03EQT TODAY

04REFLECTIONS FROM THE MANAGING PARTNER AND CEO

08REFLECTIONS FROM THE CHAIRMAN

10MARKET VIEW

14EVERYDAY LIFE WITH EQT

21EQT FUND ACTIVITIES

37EQT’S INDUSTRIAL APPROACH

Investment strategiesCorporate governance model

Industrial networkGrowth and development

A responsible investor and ownerClimate actionWorking at EQT

47EQT FUND FACTS

InvestorsFund structure

Funds and governance

51PEOPLE AND CONTACTS

PeopleContact information

Definitions

58EQT PORTFOLIO

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EQT ANNUAL REVIEW 2016

NUMBER OF EMPLOYEES INCREASED BY

9%DURING EQT FUNDS’ OWNERSHIP*

AVERAGE ANNUAL GROWTH (SALES) OF


AVERAGE ANNUAL EARNINGS GROWTH (EBITDA) OF


NUMBER OF INVESTMENTS SINCE INCEPTION

170

CAPITAL RAISED SINCE INCEPTION

35BILLION EUR

RETURNS DISTRIBUTED TO INVESTORS IN 2016

3BILLION EUR

RETURNS DISTRIBUTED TO INVESTORS SINCE INCEPTION

24BILLION EUR

NUMBER OF EMPLOYEES

480 30+ NATIONALITIES

EQT’s VISION:

To become the most

reputable investor and owner

EQT’s VALUES:

AMBITIOUS HIGH PERFORMING

RESPECTFULINDUSTRIAL

ENTREPRENEURIALINFORMAL

TRANSPARENT

*REFLECTS THE DEVELOPMENT IN THE PORTFOLIO COMPANIES, EXCEPT INVESTMENTS IN THE EQT CREDIT FUNDS AND THE EQT VENTURES FUND.

EQT I, EQT II, EQT DANMARK, EQT FINLAND, EQT III, EQT EXPANSION CAPITAL I, EQT IV, EQT OPPORTUNITY,

EQT GREATER CHINA II, EQT V, EQT EXPANSION CAPITAL II,

EQT INFRASTRUCTURE I, EQT CREDIT I, EQT VI, EQT INFRASTRUCTURE II, EQT CREDIT II, EQT MID MARKET,

EQT VII, EQT MID MARKET US, EQT MID-MARKET CREDIT,

EQT VENTURES, EQT INFRASTRUCTURE III

22FUNDS RAISED

SINCE INCEPTION

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EQT is a leading global integrated alternative investments firm, with a 23-year track record of delivering attractive risk-adjusted returns to investors. EQT has raised approximately EUR 35 billion across 22 funds since inception in 1994.

EQT today

EQT is acknowledged as a responsible investor and owner, with unique skills in developing companies (see Definitions on page 57) into great and sustainable enterprises for the long-term. EQT currently has around 85 companies in its portfolios, covering a variety of industries across three continents.

These businesses employ approximately 110,000 people and generate revenues totalling more than EUR 19 billion. EQT has around 480 employees globally, of which approximately 290 are in investment advisory teams, advising the funds within EQT’s overall investment strategies – Private Capital (including Equity, Mid Market and Ventures), Real Assets (including Infrastructure and Real Estate) and Credit (including investment strategies within Senior Debt, Mid Market Credit and Credit Opportunity) – guided by a responsible ownership approach and an industrial growth strategy.

Since inception, approximately EUR 22 billion has been invested in around 170 companies. The most tangible result of the EQT approach is that portfolio companies have, on average, increased the number of employees by 9%, sales by 10% and EBITDA by 11% annually during EQT funds’ ownership. One of EQT’s key competitive advantages is the unrivalled global network of Industrial Advisors. The network consists of approximately 250 established business leaders, experts and entrepreneurs who have experience in many industries and regions, and provide EQT with advice regarding operational and strategic issues. EQT rigorously applies a distinctive governance model, with clear roles for the owner, the board of directors and the management of portfolio companies, which ensures that each company has the tools to enable it to perform with excellence and reach its full potential. n

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The topic was fiber: the future of fiber, fiber in a digitized society, to stimulate change with fiber - the opportunities for cross fertilization across sectors seemed endless. The event I was attending

on a cold February day was EQT’s first Fiber Summit hosted by IP-Only at their office in Uppsala, Sweden. I dare to say that we had the crème-de la crème of Europe’s fiber knowledge gathered, including professionals from EQT and CEOs of EQT’s various fiber focused portfolio companies. Specialists from EQT’s Industrial Network were there too, contributing their perspectives from past investments and visions of what to come.

What struck me that day was that the fiber sector is a brilliant example of the benefits of being a multi-strategy firm with focus on transformation and growth. EQT has always had an explorative mindset, and the investments in fiber businesses manifest that. When StjärnTVnätet was acquired in 1998, who would have thought that EQT would change a whole industry and lay grounds for becoming the most successful investor, owner and transformer of fiber companies? The Equity funds entered the sector first and today, a majority of EQT’s strategies are embracing opportunities in the fiber space.

In last year’s Annual Review, I reasoned about why EQT has to grow. Clearly, it is not only about growing but also being agile in an ever changing world and having an open mind to future opportunities. We see such agility in the investor’s interest of new funds, we see it in the portfolio companies’ evolution and we see it within EQT as a firm. It is about having a transformational mindset because I believe if you stop being curious about change, you limit your ability to influence the future.

DIGITAL DISRUPTION

THE FUTURE OF PRIVATE EQUITY

REFLECTIONS FROM THE MANAGING PARTNER AND CEO

THOMAS VON KOCH

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Past experiences, shared across the board, makes EQT a smarter investor and a better owner. Fiber is a good example - it is crucial for many major digital trends, for instance the area of artificial intelligence where EQT is both introducing new technologies in companies like StormGeo (disrupting weather predictions) and investing early stage, as in Unomaly (automated analysis and irregularity detection). Both companies show what EQT as an experienced and integrated alternative investments firm can bring to businesses searching for new insights, competence and means to change, grow and future-proof themselves.

Speaking about change, EQT has made quite a journey since inception in 1994. We have gone from buyouts only to a platform of alternatives ranging from ventures to mid-sized and large buyouts, infrastructure and real estate, as well as a full offering in the debt space. We started in the Nordics and today, EQT is truly global, with teams from the east to the west. The US operations have grown significantly during recent years and Asia, which we entered in 2006, remains a strategically important region.

Another important transformation is the shift from being an investor only to also being a responsible and passionate owner providing the best possible foundation to make a company successful for the long-term.

AN ESSENTIAL PART OF PREPARING COMPANIES for the future is equipping them for digital transformation. I have been convinced for some time about the power of digitalization and that it will affect all businesses across every vertical. For EQT, it has already become a key tool for value creation, in new investments as well as in the “older” portfolio. We have a strong Digital Team covering a broad variety of competence and skills, and they give the boards and management teams of the portfolio companies access to a disruption fast-lane. And we are digitally disrupting ourselves as well. One example is us dipping our toes in using big data and artificial intelligence in deal sourcing. I think we are starting to see a paradigm shift in the private equity industry as a whole - my advice remains: embrace digitalization or you will soon be out of business.

Equally important is our commitment to responsible investments. We are capitalizing on the sustainability opportunities as part of the future-proofing of companies in parallel with embracing EQT’s role as a good corporate citizen. With the engagement of EQT’s Responsible Investment Team, we are taking a lead in the industry while remaining humble about the challenges and complexity. But it comes naturally to us simply because we strongly believe sustainable business is good business and that private equity can be an innovative force to future solutions.

At EQT’s Annual Investors Meeting last year, I painted a rather gloomy 2016 outlook with concerns about a potential Brexit, the US election outcome, sustainability challenges and negative interests as the new “normal”. Many of these events have turned into reality. With this in mind, EQT’s achievements during the year makes me even more proud. Three first time funds were raised: EQT Mid-Market Credit, EQT Ventures and EQT Mid Market US. And not to forget the most recent fund closing, EQT Infrastructure III (raised in less than six months), as yet another endorsement of the EQT platform. This would of course not have been possible without EQT’s investors and we are deeply thankful for the continued trust.

LOOKING AT THE FUND ACTIVITIES, 2016 was the busiest year in our history. You can check out the website for a comprehensive list but I want to highlight a few companies that exemplify the strengths of EQT’s platform and “local-with-locals” approach in such a good manner:firstly, EEW Energy From Waste, a corporate orphan acquired from a large power utility business in Germany, transformed into a digital waste management company and sold to the Beijing Municipality. Not only was it a very successful investment in terms of the generated returns - it is now also an important part of the solution to waste in China. The next one is Atos Medical, a Swedish medical device company that was looking for ways of growing globally and sustainably. Together with the founder, the business was developed into an international leader in the laryngectomy market. Patients across the globe having their voice box removed now have access to Atos Medical’s

” What struck me that day was that the fiber sector is a brilliant example of the benefits of being a multi-strategy firm with focus on transformation and growth”

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life changing post-cancer products. In addition to providing investors with great returns, Atos Medical was recognized as the “development case of the year” by Private Equity International. Long-Spring Education, an Asian education company, is another interesting investment. In a partnership with the founders, EQT’s accumulated competence from the education sector will be utilized and the teams in Europe and Asia will work closely together. The experience from the ownership of AcadeMedia, the largest education provider in the Nordics, will no doubt come in handy. Doubling the number of students and excelling in terms of quality measurement, are merely a few examples of its development with EQT as an owner. In June 2016, AcadeMedia was listed on the Swedish Stock Exchange with a well diversified shareholder base committed to invest in the future of the education system.

The above examples are real life illustrations of the EQT platform and funds in action - developing companies, and being part of the solution to societal challenges while at the same time creating value for investors. It demonstrates the ability to cross-pollinate and bring well-working investment themes across

countries and regions, investment strategies and sectors, and teams. All evidence of what EQT, as an integrated alternative investments firm, can bring in a broader context.

LOOKING AHEAD, I am confident that EQT will continue to thrive despite uncertain and volatile markets. I am surrounded by the most amazing people in the world: EQT’s dedicated staff, the specialist brains of the Industrial Advisors and the portfolio company CEOs giving their utmost to excel. We all have the EQT values to inspire, guide and challenge us, and we have a passion for supporting the development of strong and future-proof companies which in turn creates value to both investors and society at large - this is EQT’s purpose in a nutshell. n

” I am surrounded by the most amazing people in the world”

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Not far from the farm where I grew up in Sweden, there was a big deposit of gravel; a large area full of high dunes of crushed stone and sand. Sometimes I would go there with friends to try

to run up the dunes. It was incredibly fun, and incredibly hard. For each step, the sandy slopes would give away under our feet and slow us down, making each step heavier than the one before. To succeed, you not only needed to be quicker than your competitors - you needed to be quicker than the moving ground under your feet.

When I, as Chairman of the EQT board, look at the world around us today, I come to think of those runs up the gravel dunes. It seems somehow fitting for EQT and the situation we experience today. To be still is not an option. We have a constantly moving surface under our feet, with political volatility and global markets moving in new directions, forcing the industry to change in an increasingly fast pace.

FROM MY PERSPECTIVE, we are doing very well in spite of this. The geopolitical turbulence last year was of course particularly unpredictable, but EQT kept growing. The platform expanded, in terms of products, geographies and use of technology. More people came on board, making EQT even bigger in Europe, North America and Asia. A particularly important step taken in early 2017, was that EQT decided to use Luxembourg as one hub for future domiciliation of funds, managed

under the AIFM Directive in the EU. This is a transparent and sustainable solution for both investors and other stakeholders, and follows the 2012 decision to move all new funds onshore. In a constantly changing industry, this will ensure that investors are provided with the best possible service.

As important as the industry changes are, they are at the same time just “business as usual” for EQT. We thrive on change - we have actually been in transformation since inception 1994, adapting and evolving every day to constantly improve EQT’s performance. I think going from being a small Stockholm start-up, to today’s multi-product platform and local presence across the globe, is valid proof of our capacity to transform.

ONE THING, THOUGH, WILL NOT CHANGE: the unique EQT value-based culture. Why? It would be easy to argue that values change all the time, and a growing firm that is increasingly doing business across different cultures should adapt to this and develop new values, too. I argue the opposite - the more global we become, the more important it is for us to keep our values and culture intact.

Let me elaborate: when you are in constant change because of competition, market events, politics or other pressure points, culture will become the only constant to base decisions on. A strong company culture will set you apart, make you unique and empower the individuals in the organization to make the right decisions at the right time.

REFLECTIONS FROM THE CHAIRMAN AND FOUNDER

CONNI JONSSON

2007EQT CORE VALUES FORMALIZED

2008FIRST EQT ANNUAL REVIEW PUBLISHED

THE VALUE OF CULTURE

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2010SIGNATORY TO THE UN PRI AS THE FIRST NORDIC PRIVATE EQUITY FIRM

2012DECISION TO MANAGE FUTURE FUNDS ON-SHORE

2013EQT AB ESTABLISHED WITH STRONG INDUSTRIAL BOARD

EQT ACADEMY LAUNCHED

2014TRANSPARENCY ADDED AS CORE VALUE

2017DECISION TO USE LUXEMBOURG AS HUB FOR FUTURE EQT FUNDS

In short, the shared values become the soul of the company. We can change everything else - and quite quickly too, as opportunists - but not the soul. Regardless of background, region or business line, the EQT people are always the same: respectful, transparent, and fuelled by an entrepreneurial spirit and a passion for developing companies.

Much of our culture comes from the Wallenberg family, with its 150-years long history of long-term growth and industrial approach. This is ultimately reflected in how EQT governs itself and the funds’ companies. The governance model is the framework that guarantees that the decisions made at EQT and the portfolio companies during EQT’s ownership period are taken with a long-term perspective. Alignment of interests, shared value for investors and society, and clear responsibilities are at the core of this model. Everyone, from Chairman to CEO and management teams, need to have the same goal of unlocking the company’s full potential, and know what to do to in order to get there. At the end of the day, it is about exercising responsible ownership and being able to develop companies with great respect for all stakeholders.

In this kind of culture, the values become key in every layer of decision-making, not least when you handle risk. I, for one, prefer to take on risk with someone who shares my values rather than with someone who doesn’t. I mentioned in the beginning that the runs up the gravel dunes were hard, but they could also be quite

dangerous. Well, we took the risk and ran anyway, and trusted each other to help if something happened. I don’t think I would make the same decision today, but my point is the importance of trust. In our business, people need to take risks. That’s the essence of the private equity model: without risks, there are no returns. If you have a genuine trust from your team, and feel confident about your place in the group, you will be more inclined to take the right risks, face challenges and break new ground. Those who does not feel safe in the group usually become opponents to change. They will be less inclined to think in new ways or to make tough decisions. A strong culture can prevent that.

TODAY, EQT HAS A REPUTATION for excellence in ownership, people as well as performance, and all of this boils down to our culture. I firmly believe that our strong set of values is what will set EQT apart from the rest in the future. It will help us attract the best people, not just to EQT, but also to the portfolio companies, and to our outstanding network of Industrial Advisors. It will be what makes us unique and attractive when we deal with new geographies, and what keeps our reputation for excellence. Our values got us here, and they will remain firm - and when the ground moves under our feet, we will just run faster.

n

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The unstable geopolitical environment has had a profound impact on the financial markets in the past year. This uncertainty has continued on a

global scale and both the equity and credit markets are experiencing heightened volatility. Simultaneously, in the last few years low interest rates and low inflation have created high employment rates in the Western world and South East Asia, resulting in large capital inflows to institutional investors such as pension funds.

As private equity is increasingly becoming an integral part of the global economy, this impacts alternative investment managers too. On the one hand, there is an increased interest in deploying capital into alternative investments, and on the other, there is increased competition for assets, driving valuations even higher. Many investors are seeking to consolidate their alternative investment portfolios towards fewer managers – a trend where attractive platform offerings, strong market positions and strong brands are rewarded with more capital.

“NOT TOO LONG AGO, I had to defend the reasons for EQT pursuing different investment strategies in every other investor meeting. Today, it is almost a prerequisite to stay on top of investors’ minds”, says Jussi Saarinen, Partner and Head of Investor Relations at EQT Partners.

Investors have good reasons to look for managers with a holistic perspective. Another strong

trend in society as a whole is the increased interest in responsible investments, whilst also demanding increased transparency and disclosure from the industry. This, in turn, pushes the industry to evolve into new directions, explains Saarinen:

“Increased regulation and complexity drive costs for the managers. At the same time, heightened fee sensitivity among investors is fueling growth of alternative ways of trying to access private markets – evidenced by the rapid growth of shadow capital; co-investments, direct investments and separately managed accounts.”

THERÉSE LENNEHAG, Head of Responsible Investment at EQT Partners, notes that the sustainability perspective has continued to gain significant attention within financial markets, and highlights the UN’s 17 Sustainable Development Goals, widely embraced by governments, corporations and investors, as a sign of the times.

“Humanity’s impact on the earth’s geology and ecosystems is now so profound that a new geological epoch, the Anthropocene, needs to be declared, scientists claim. We are now at a point when it is not only possible, but critical to create value from sustainability. What used to be a ‘nice to have’ is now a ‘must have’ and the concept of impact is a growing topic within the financial community”, Lennehag says.

For firms embracing sustainability as an essential and integrated part of its business - like EQT - these challenges also bring new business opportunities. Doing good is good business, Lennehag points out:

“As a responsible investor and owner, EQT can make a difference by investing financial and human capital, as well as social and relationship capital to help companies providing the solutions society needs to grow and prosper in the long-term. That is why EQT pushes all portfolio companies to strategically discuss these questions on a regular basis at boardroom level.”

More capital seeking fewer managers, a rising awareness that sustainable business is good business, and a digital reshaping of society as we know it - these are the strongest forces impacting the private equity industry right now.

Uncertainty, transformation and opportunitiesMARKET VIEW

JUSSI SAARINEN

THERÉSE LENNEHAG

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A THIRD MEGATREND that shapes the private equity market is digitalization. And it is quite dramatic: according to Sven Törnkvist, Head of Digital Business Development at EQT, the world is going through a complete digital reshaping.

“Every historical technological shift, such as the introduction of steam power, electrification and information technology, has brought about the downfall of many historic incumbents, but also allowed for new, more tech-savvy companies to replace them. But this time it is even more complex because there is not just one technology, but many. Highly advanced technology in fields like artificial intelligence, genomics, 3D printing, internet of things, Energy storage, Robotics and Nano materials are developing at a very rapid pace”, Törnkvist says.

He also points out something equally important but less recognized; the rise of enablers, such as crowd-sourcing, open source, third-party data, rapid experimenting methods and cloud-based computing. These enablers make barriers to entry built on fixed-assets irrelevant in many industries.

“It is crucial for companies to take an agile approach to technology and to acknowledge it as a requirement for future-proofing the businesses. By embracing digital transformation, a company can theoretically tap from an infinite source of competitive advantage”, Törnkvist says and emphasizes that for EQT, the digital approach is vital to coping with the changing market.

“Importantly, EQT acknowledges that, just like the private equity industry as a whole, we are ourselves also a subject to digital transformation. To make EQT funds smarter investors, we are investing in radical upgrades in EQT’s internal IT-systems and ways of working. After all, we cannot ask portfolio companies to transform unless EQT is doing it too.”

Uncertainty, transformation and opportunities

SVEN TÖRNKVIST

Q: Looking back at last year, how would you describe the main themes for EQT?

Christian Sinding, Head of EQT Equity: Two things come to mind: firstly, how intense the EQT activities were across the board. I think we had more than 50 acquisitions, about 25 exits and an IPO with AcadeMedia, and on top of that EQT successfully raised three new funds. Secondly, I think of political uncertainty. From a macro perspective, this was a very strong theme where both the Brexit decision and the Trump win caused a lot of turmoil.

Lennart Blecher, Head of EQT Real Assets: In the midst of the turbulence, we have also had a strong trend with well-performing financial markets. The last few years’ large inflow of capital to the world’s institutional pension funds have resulted in the reallocating of larger portions of their capital to alternative investments, such as private equity. This is something EQT has benefited from in the last fundraises, not least Infrastructure III, which closed in February 2017.

Andrew Konopelski, Head of EQT Credit Strategies: From a credit perspective, we have seen a shift in Europe from traditional lenders – the banks and CLOs – to alternative institutional lenders. Alternative credit providers, like EQT, can deliver more creative solutions that provide borrowers with the flexibility they require to optimally manage their businesses. This transition is beneficial, as we are moving from the traditional to the new and making the industry more dynamic.

What characterized 2016 from the investment advisor’s perspective? When five Partners from EQT Partners sat down for a roundtable discussion on the topic, the picture became clear: these are volatile times, but for those capable of transforming companies, the investment opportunities keep coming.

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Hjalmar Winbladh, Co-Head of EQT Ventures: 2016 showed us in a striking way just how fast the digitalization trend is accelerating. It is something that will define and reshape industries, and this trend is not slowing down. That’s one of the reasons why EQT launched the EQT Ventures in May 2016, one of the largest first-time venture funds in history, and also the reason why EQT is investing heavily in digitizing itself.

Jannik Kruse Petersen, Head of EQT Mid Market Europe: The sustainability theme certainly picked up momentum, with an increased interest in how firms like EQT can contribute to society. It is also a force that creates new business opportunities. EQT funds have been taking advantage of this for some time with previous investments like StormGeo and Faerch Plast, but there’s more. One recent example is ELEVATE, a Chinese company that the EQT Mid Market fund acquired in February 2016 – the global market for supply chain sustainability has a huge potential for growth.

Q: Assets prices have also been on the rise, so it is becoming increasingly expensive to buy. What is your view on this?

CS: The markets are so efficient now, and this means that basically all companies or financial products are bought at market value. This means that the only way a private equity company can make a difference is by helping the underlying company develop itself, taking it from one level to the next.

LB: It is also a good market to sell in. EQT Infrastructure funds I and II already started to take advantage of the high valuations in 2015 with the divestments of Swedegas, Koole and EEW Energy From Waste. This continued in 2016 with Adven and Parkia.

CS: We saw the same in Equity: the EQT VI divestments of Atos, Automic and BSN medical are very good examples of companies that have reached their full potential and made timely exits. Going forward, we will definitely continue to have a strong focus on exits.

AK: Valuations are indeed high, but as mentioned, there is no shortage of private capital available for financing solutions. We have seen banks’ appetite to lend impacted by a number of factors, including new regulation. This is

further creating opportunities for private debt providers, like the EQT Credit funds, to step in and provide the necessary financing solutions for borrowers.

Q: With a growing number of products available across a diverse platform – what is the common ground that brings EQT together?

JKP: We share the same values. We take the EQT industrial approach and the fact that we strongly believe in being “local with locals”. EQT is active on three continents, so knowing the local markets and having local Industrial Advisors really makes a difference when opening doors for the portfolio companies to new markets in new geographies. This is even more apparent to the Mid Market funds because of their global presence in Europe, US and Asia.

CS: I think our unique Nordic culture is extremely important. EQT could not have grown this fast if we had not kept the culture intact. A lot of the work that we do as leaders – in addition to focusing on investigating investment opportunities – has to be about the values. It is the combination of investment skills and strong culture that makes EQT so good.

HW: What fascinates me is that the culture is not just an internal question. When EQT Ventures launched, we were expecting the start-up scene to only be interested in the Ventures brand. But it was not at all like that. The overall EQT brand creates a lot of interest and is a real differentiator amongst the entrepreneurs. I think it has to do with the strong values – it just attracts the right people.

LB: You can see the same in the EQT Industrial Network – the Industrial Advisors are actively applying not only their individual expertise, but also the EQT values in their work with the portfolio companies.

JKP: There is also a real edge in our cultural willingness to share resources, knowledge and being open and transparent about both successes and challenges. For example, all business lines are now working with the EQT Digital Team to ensure the portfolio companies benefit from their expertise. This is unique and puts a lot of pressure on our competitors. In addition, our shared values enable us to address the market as “One EQT” rather than as individual business lines.

HJALMAR WINBLADHLENNART BLECHER

MARKET VIEW

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HW: Sharing is absolutely a key theme. The Ventures team has quickly reaped the benefits of the firm’s knowledge. Everyone is open to jump in with views and advice across the platform. What we need to do is to find new ways to digitize all this knowledge and these processes – to make sure it is accessible to everyone across the globe, and that it will stay with the firm even if individuals leave.

AK: I think in many ways, the EQT Credit strategy is the largest beneficiary of the unique knowledge bank we are talking about. We are industrially agnostic in terms of the types of industries we are looking at, so we really use the fact that we have 200 plus investment advisory professionals and 250 Industrial Advisors that are constantly looking at the businesses over cycles and years. It creates an amazing amount of knowledge and insight to base our investment advice on.

CS: EQT has been investing heavily in digitalization, but let’s not forget about the importance of the HR team, which has developed the EQT Academy. This learning tool makes sure that every individual in EQT, from assistants to partners, can develop to their next level. Ultimately, it is about enabling people to have a positive impact on society. This is totally unique in private equity, as the industry is traditionally very egocentric.

LB: I was out on fundraising this fall and met with some 300 investors, and they absolutely loved hearing about the Academy. We invest in digitalizing the firm, and we invest in our employees with the Academy. It is a huge differentiator from our competitors.

Q: What themes can we expect going forward?

HW: Big data and artificial intelligence will fundamentally transform a lot of industries. I can really see the next globalization wave impacting white collar jobs in the Western hemisphere. The first wave of globalization hit blue collar workers, which has created the political uncertainty we’re experiencing now. As a society, I think we should have taken care of this earlier.

LB: The technology and digitalization theme is really a double-edged sword. On one side, it will benefit and develop society, and on the other side, it will, like you describe, reduce the workforce. Today, I think improving infrastructure is one of the few things in Western society that will create jobs.

JKP: At the same time, it is important to remember that history has shown us that major technological shifts have also always generated new jobs that we couldn’t have predicted beforehand. In the early 20th century, who could foresee for example jobs created by data storage for example? We need to have faith in this transformation, too.

AK: Agreed. Uncertainty will always be a part of life and there will always be friction between geographies. The bottom line is that you always have to be prepared. I think the outlook for this year is fairly good in terms of economic growth and returns.

LB: We entered 2017 with extremely high valuations of companies and high political volatility, so I am quite cautious about the year ahead. You will not see the industry putting up a stream of aggressive investments. The ones that will benefit the most from this volatility is most likely Andrew’s Credit team. I see the scenario almost like a funnel – you have the most opportunities in credit, then real estate, then buyout and then infrastructure. At this time, with the high valuations, infrastructure investors will benefit the most from having a sustainable, value-oriented and long-term approach.

CS: The Equity priority is, as always, to drive performance in the portfolio companies. We will definitely start seeing the outcome of all the heavy internal investments EQT has done in digitalization to help transform the portfolio. Take Eton, for example, which EQT VII acquired in January 2016. It is already the most modern and technology enabled supplier of men’s shirts in the world. When it comes to acquisitions, we will be able to find interesting investment opportunities even if the markets are weak, because we are looking for companies with a strong secular growth, utilizing conservative capital structures.

HW: When EQT Ventures was launched, we were almost immediately made leaders within the European venture space. This is quite interesting because the competitiveness for venture capital in Europe is much lower than the US or Asia. Why? We don’t lack talent; we don’t lack innovation; we don’t lack entrepreneurship. What we have been lacking is larger funds that can support building global businesses that are transforming industries in Europe. EQT Ventures is just that and I expect to see a lot of interesting opportunities ahead. n

JANNIK KRUSE PETERSENCHRISTIAN SINDING ANDREW KONOPELSKI

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HUSCOMPAGNIET

SINGLE-FAMILY HOUSE RETAILER - DENMARKBuilds around 1,000 single-family houses per year EQT VI 2015

TOP-TOY

TOYS RETAILER - DENMARKSold over 45 million toys in 2016EQT VII 2016

COM HEM

TV, INTERNET & TELEPHONY PROVIDER - SWEDENEQT III 2003-2006

INDEPENDENT VETCARE

VET SERVICES PROVIDER - UK The largest privately owned vet services platform in the UK EQT VI & EQT VII 2017

SECURITAS DIRECT

ALARM AND SECURITY COMPANY - SWEDENEQT V 2008-2011

IP-ONLY

FIBER PROVIDER - SWEDENAs of January 2017, IP Only delivers fiber to 100,000 Swedish households EQT MID MARKET 2013

MUSTI JA MIRRI

PET SPECIALTY RETAILER - FINLANDOperates more than 230 stores across the NordicsEQT MID MARKET 2014

MIN DOKTOR

HEALTH CARE APP - SWEDENLets users communicate with doctors through phone or video to receive guidance, diagnosis and prescriptions EQT VENTURES 2016

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Some like to call it the hamster wheel; you wake up, go to work, eat, sleep, repeat. But during all of that, life happens. You send your kids to school, meet

friends, enjoy a workout, book your next holiday trip, or whatever it is that you have on your agenda that day.

To be able to do this, society needs to work. Trains need to be on time, schools need to be open, the internet up and running, healthcare must be accessible and so on. Most people naturally expect things to work, without thinking too much about the driving forces behind it. And if they should think of it, they will most likely not think of private equity as one of those forces, that pushes society forward.

However, for the last 20 years, EQT has increased its daily importance on many levels in society. Now, people can interact with EQT every day. How? Simply put: as end-users to the companies that the EQT funds own, or as end-clients to the pension funds that invest in EQT. Once you start looking, the EQT connection pops up in unexpected places. Your clothes? Check. Your kids’ school? Check. Your local energy-from-waste plant? Check. Grandma’s pension plan? Check. Since inception in 1994, around 170 EQT fund-owned companies, spanning numerous different sizes and across a variety of sectors, have touched upon people’s lives on different levels. As a reference, in the same time span EQT funds have distributed approximately EUR 24 billion back to investors, and in the end to many pensioners’ benefit.

With such a growing number of interactions with society, it would be strange if the evolution of private equity had gone unnoticed. It hasn’t - among policymakers, there is already a healthy debate about the industry’s influence in society. To EQT, this is a key

aspect. The logic is as follows: EQT wants to contribute to society, because without a prosperous society, there will be no future opportunities to invest in. A responsible approach is simply good business.

“I BELIEVE WE ARE THE GOOD GUYS. We’re not like some cowboys who come in during time of distress and only aim at cutting costs. Yes, we want the EQT companies to be profitable – that goes without saying – but there’s no contradiction in actively supporting companies on the journey from good to great, and at the same time help improve the lives of lots of people”, says Marcus Brennecke, Partner at EQT Partners, underlining the EQT business model of long-term development and future-proofing of companies.

Brennecke is an Investment Advisor to the EQT funds within the Equity investment strategy, whose most recent fund, EQT VII, launched in 2015 after raising EUR 6,75 billion. The fund has already made ten investments, from industrial vacuum components (Piab) to an orthopedic implant manufacturer (Lima).

From the EQT VI fund Brennecke highlights another company that is transforming people’s lives in a very tangible way: Sivantos, a maker of hearing aids. Since the acquisition in January 2015, the company has already expanded into several more countries, and the money spent on research and development has made it the industry leader in technological advancements. The products can now serve as the owner’s wireless headphones, connecting to everything from TV sets to portable devices. The company is also innovating in the ways it reaches new customers:

Everyday life with EQTLet’s face it: the average citizen has probably never heard of EQT. Even more likely, they have not reflected on how private equity affects their daily life, either. But a closer look would reveal that they might play a more active part in the EQT ecosystem than they realize.

1 5


ACADEMEDIA

INDEPENDENT EDUCATION PROVIDER - SWEDEN140,000 children, students and adults attend AcadeMedia’s 570 education unitsEQT V 2010

“In emerging markets, Sivantos has started to send out iPads to potential customers who live too far away from the nearest store. The iPad is used to make a remote fitting of the hearing aid, and then shipped back”, Brennecke says.

Brennecke also sees something so necessary as education of people as a future growth area. EQT Funds already owns education companies like AcadeMedia,

serving people of all ages from pre-school to adults, and since early 2017.“I was at the World Economic Forum in Davos this year, and many seemed to be afraid of ‘industry 4.0’ and a world where people are going to lose their jobs to machines. I don’t agree with that, but I do believe that we’re going to need a

lifelong education. That’s why we think the education sector is so interesting”, he adds.

A roof over one’s head is an obvious must-have in life. But you might not expect EQT to be behind your new office space. However, EQT is dipping its toes into this area as well. In 2015, Edouard Fernandez and Rob

Rackind joined EQT Partners as Partners and advisors, to co-head a real estate initiative within EQT’s Real Assets strategy. And, there was a sustainable twist to their thinking, explains Edouard Fernandez:

“The main focus is refurbishment and redevelopment of existing buildings. It s actually the definition of sustainable and responsible investments: when EQT fixes these buildings up, obviously water and electricity usage will be reduced and waste minimized”.

ACCORDING TO FERNANDEZ, EQT asks the same of their contractors and when new tenants move in they sign a “green lease”, agreeing to do their best to source locally, use energy saving technology (such as light sensors) and recycle waste as much as possible.

“We’re happy to push the agenda. It’s attractive for both the investors and the tenants. It’s much easier for them to turn to their board and say ‘we’re leasing this space and not that space because of this factor’”, says Fernandez.

There are futurists who have been speaking out about office buildings becoming obsolete altogether. The internet will make it possible to sit anywhere and do anything, so why bother to go downtown? But Fernandez hasn’t seen that happening.

NORDIC AVIATION CAPITAL (NAC)

AIRCRAFT LEASING COMPANYThe world’s largest turboprop trading and leasing company with an active fleet of over 350 aircraftEQT VI 2015

EEW ENERGY FROM WASTE

ENERGY FROM WASTE COMPANY - GERMANYEQT INFRASTRUCTURE II 2013–2016

HECTOR RAIL GROUP

RAIL FREIGHT COMPANY - SWEDENProduced over 14 million km in 2016 - equivalent to 350 laps around the globe or 18 round trips to the Moon EQT INFRASTRUCTURE II 2014

PARKIA

CAR PARK OPERATOR - SPAINEQT INFRASTRUCTURE I 2011–2016

KFZTEILE24

AUTOMOTIVE SPARE PARTS RETAILER - GERMANYOne of the leading full-range online retailers for automotive spare parts and accessories in GermanyEQT MID MARKET 2015

XXL

SPORTS RETAILER - NORWAYEQT V 2010–2015

“I do believe that we’re going to need a lifelong education. That’s why we think the education sector is so interesting”

MARCUS BRENNECKE

1 6


“I think it’s the other way around. We need to feel more of a physical presence today. We constantly talk to sociologist and psychologists – not only architects – on how to build everything from offices to retail spaces”, he says.

WITHIN THE LAST TWO YEARS, EQT has broadened and developed its entire platform to cater to the changing needs of investors, and one existing business strategy that is now quickly evolving is EQT Credit. Credit spans the full risk-reward spectrum and is currently investing in three strategies: senior debt, direct lending and credit opportunities.

“We’re different from the rest of EQT in the way that EQT Credit Funds doesn’t take controlling ownership of the companies”, says Paul Johnson, Partner at EQT Partners and Investment Advisor to the Credit funds.

Even though Credit is a little different, it taps into the same DNA as the rest of EQT - it is still about making good companies great. EQT Credit Funds will simply invest in companies that need a push, not an overhaul. Johnson adds that the prospects of the companies are key:

“It all starts with a question; ‘does this company have a reason to exist?’ We’re very selective. We have an experienced team and also really benefit from the

full EQT platform. We can use the knowledge of our colleagues when advising the fund on what companies to go with”, Johnson explains.

One thing that most people can agree on is that society needs innovation. EQT could point to a number of good examples of companies that have pushed change in a way that society can benefit from. Take Fertin Pharma, for example, one of the Mid Market fund’s companies. Fertin is the world’s largest, independent manufacturer of nicotine chewing gum used for withdrawal management in the process of smoking cessation – which is on the World Health Organization’s (WHO) list of pharmaceuticals that every government should provide to their citizens. Since EQT took over, focus on using gum as a delivery mechanism for other active ingredients has increased and the potential is very interesting, explains Rikke Kjaer Nielsen, Partner at EQT Partners:

“Gum is a very effective and obvious carrier of a variety of active ingredients and the company

FÆRCH PLAST

PLASTIC PACKAGING SOLUTIONS - DENMARKOffers packaging solutions with a focus on recyclability, sustainability and food safetyEQT VI 2014

SCANDIC

HOTEL CHAIN - SWEDENEQT V 2007–2017

MUNKSJÖ

SPECIALTY PAPER COMPANY - SWEDENEQT III 2005–2014

FERTIN PHARMA

PHARMACEUTICAL CHEWING GUM - DENMARKThe world’s largest independent developer and manufacturer of medicated chewing gumEQT MID MARKET 2017

UNOMALY

IT ANALYTICS PLATFORM - SWEDENHelps companies avoid IT-incidents by automatically analyzing the data their IT-systems produceEQT VENTURES 2016

SERVICE PARTNER ONE

DIGITAL OFFICE MANAGEMENT PLATFORM - GERMANYOffers cleaning, delivery of fruit, coffee machines, water dispensers, and office supplies EQT VENTURES 2016

COROMATIC GROUP

IT AND DATA SERVICES - SWEDENThe largest data center-focused service company in the NordicsEQT EXP CAPITAL II 2011

ETON

PREMIUM SHIRT BRAND - SWEDEN Sold more than 1,1 million shirts in 2016EQT VI 2016

“It all starts with a question; ‘does this company have a reason to exist?’ We’re very selective.”

PAUL JOHNSON

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LIMA

ORTHOPAEDIC IMPLANTS - ITALYProduces orthopaedic shoulder and knee implants and is present in more than 40 countriesEQT VII 2016

CHARLESTON

NURSING CARE HOMES - GERMANYOperates 22 facilities in GermanyEQT INFRASTRUCTURE II 2014

GAMBRO

MEDICAL TECHNOLOGY COMPANY - SWEDENManufactures products for dialysis treatmentEQT IV 2006-2013

SIVANTOS

HEARING AIDS - GERMANYServes customers in approximately 120 countriesEQT VI 2015

PLANTASJEN

GARDENING SUPERSTORE CHAIN - NORWAYEQT III 2001-2007

FLYING TIGER COPENHAGEN

RETAIL STORE CHAIN - DENMARKHas approximately 725 stores in 28 European countries, Japan and the USEQT VI 2013

can actively work to support better lives by making medicated and neutraceutical gums available to the broader population.”

THE MID MARKET FUNDS’ PORTFOLIO also holds businesses such as broadband provider IP-Only, that owns and operates a high-capacity fiber network

in Scandinavia. IP-Only has rolled out fiber to rural areas that other providers decided to bypass, giving locals high-speed access to internet, and consequently providing them with completely new opportunities to make a living. Another, EIS Aircraft, is making a difference by replacing aircraft interiors

with light-weight alternatives. Lighter planes consume less fuel, which means less environmental impact and, cheaper tickets for the passengers.

“There is also StormGeo, a company that uses advanced analytics to provide weather-based decision support primarily to the maritime industries including the

global shipping industry. Let’s say you want to go from New York to Rotterdam. By combining asset specifics like type of vessel and cargo etcetera with very accurate weather and current forecasts along your route, you can save some five percent on fuel”, says Nielsen.

And speaking of pushing change, EQT is expanding its Mid Market presence also in Asia:

“There are new opportunities opening in Asia with a growing middle class, particularly in China, that can be provided with better products and better services. I believe the key to success will be to understand local markets, and know how to support local businesses with global resources”, says Martin Mok, Partner at EQT Partner and EQT Partners Managing Director in China.

ANOTHER KEY TO SUCCESS may well be the opportunities digitalization brings. EQT Ventures targets exactly that. The fund, which aims at minority investments in tech start-ups, closed last year and is one of the largest of its kind in Europe, with EUR 566 million in committed capital.

“We want to be a force for innovation in Europe”, says Ted Persson, Design Partner and advisor to the fund and himself a former entrepreneur.

“There has never been a US-grade investor in tech companies in Europe before EQT Ventures. That’s one of

“I believe the key to success will be to understand local markets, and know how to support local businesses with global resources”

MARTIN MOK

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two reasons the fund is here. The other is that everything is being digitalized everywhere and EQT has got to be moving in that direction”, says Persson.

He gives a few examples, among them Min Doktor (which translates to “my doctor”), a healthcare app where people can chat or even video chat with a physician without even getting out of bed; and Watty, another Swedish start-up, that aims at saving money by keeping track of energy use at home.

THE LAST EXAMPLE is perhaps particularly interesting - society can benefit from industry disrupting the way we consume energy. But tracking energy at home will not be enough – society needs to take a larger take on energy production, storage and distribution too.

“If you think about it, investing in infrastructure is about understanding what kind of key services society needs, now and in the future. Right now there are several important sectors that we know are transforming fast and where we can see that society will need to invest going forward, and energy is one of them”, says Masoud Homayoun, Partner, Investment Advisor and Head of EQT Infrastructure in the Nordics.

A textbook example of how EQT can drive change in the energy sector is Adven, a Finnish company that

EQT Infrastructure I owned between 2012 and 2016, which offers tailored, business-critical energy solutions and district heating at over 200 decentralized energy production sites in Finland, Sweden and Estonia. When the fund bought the company the key to growth and value was clear - turn the company to a leading supplier of energy with low environmental impact.

“The company used to run mainly fossil fuel solutions, but when EQT came in, investments in bioconversions were accelerated”, explains Päivi Arminen, Director at EQT Partners and advisor to the fund.

“During the EQT ownership, Adven invested EUR 120 million in growth and sustainable energy infrastructure. The effect was that the company could reduce its own carbon footprint with 35 percent, which in turn reduced the customers’ carbon footprints”, she adds, highlighting how these investments enabled the company to widen its offering into eco-friendly geothermal and grow into a new market like Sweden.

BALLINGSLÖV INTERNATIONAL

KITCHEN FURNITURE MANUFACTURER - SWEDENEQT 1998–2002

DUNI

NAPKINS, CUTLERY, CUPS - SWEDENEQT I 1997–2008

BACKWERK

BAKERY AND FOOD MARKET CHAIN - GERMANYHas over 340 stores and 250 franchise partners in the DACH regionEQT MID MARKET 2014

SANITEC

BATHROOM CERAMICS PRODUCER - FINLANDEQT IV 2005–2015

LAOBAIXING

PHARMACY SUPERSTORE CHAIN – CHINAOperates over 780 retail pharmacy storesEQT GREATER CHINA II 2008

BSN MEDICAL

MEDICAL DEVICE COMPANY - GERMANYEQT VI 2012–2017

JAPAN HOME CENTRE

HOUSEWARE RETAIL CHAIN - CHINAEQT GREATER CHINA II 2010–2016

“If you think about it, investing in infrastructure is about understanding what kind of key services society needs, now and in the future.”

MASOUD HOMAYOUN

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Among the sectors that Masoud Homayoun mentions as particularly interesting from a transformation perspective are also transportation and communication.

“When urban environments expand and the need for sustainable flows of goods grows, it changes how we commute and transport goods. Similarly, when society’s need for data transfer and connectivity increases, it changes how communication infrastructure is designed and built. That’s why we think investments like Hector Rail Group, Tampnet and GlobalConnect are so interesting”, exemplifies Homayoun.

BUT HE IS ALSO CAREFUL TO point out that to EQT, it is never just about the investments: “I believe EQT can make a big difference when it comes to developing infrastructure to society’s benefit and that private capital will be more and more important source of funds going forward, but capital is just part of it. The contributions also come in the form of the competence and experience that EQT can bring, improving key services for people and industries, creating jobs and helping communities grow”, says Homayoun. This altruistic approach may stem from the fact that Homayoun and his colleagues think of the money that EQT invests as part of society, too: A large portion of the invested capital comes from investors like pension funds, and the returns created will ultimately go back to them. This brings a lot of responsibility, Homayoun says:

“It’s right of society to ask of investors like EQT and others ‘what do you stand for, and how do you contribute?’”.

A state-run investor like the Fourth Swedish National Pension Fund (AP4), with its mission to contribute to the stability of the Swedish pension system, will definitely ask ‘what do you stand for’ before investing. AP4 is thorough when deciding who they will trust with capital. Head of Alternative Investments at AP4, Tobias Fransson, explains that even though the total share that AP4 allocates to private equity is small – the major focus for AP4 is listed companies – the responsibility aspect is big.

“At the end of the day, our job is to take care of future pensions, so when we make investment decisions, we will make sure that we are getting the best possible return. In addition, we are looking as far as 40 years ahead. This long-term approach brings a long-term responsibility, so naturally, from those we invest with, we expect sound corporate governance and sustainable development of companies that contribute to the needs of the society”, Fransson explains.

AND HOW DOES A PENSION FUND like AP4 see private equity’s role in society? Turns out Fransson has an agnostic perspective.

“There’s a great interest in the private equity ownership form right now, something which is quite natural given the increasing occurrence of private equity ownership in society. But to us, it is about how well the companies that we invest with are run. This will determine if we will get a better long-term return to the pension system than we could have gotten anywhere else”, Fransson says.

However, he does point out one aspect that he thinks seldom gets mentioned when discussing the societal contributions of private equity firms: their function as providers of public companies.

“EQT has over the years floated well-run, high-quality companies that continue to perform also after the IPO. I think that is a really important contribution – society in general and long-term investors such as pension funds in particular need an inflow of new companies to the stock markets that will contribute to the development of society in general and provide us with investment opportunities that the pension system will benefit from”, Fransson concludes.

n

“Society in general and long-term investors such as pension funds in particular need an inflow of new companies to the stock markets that will contribute to the development of society in general and provide us with investment opportunities that the pension system will benefit from”

HEAD OF ALTERNATIVE INVESTMENTS AT AP4 – TOBIAS FRANSSON

2 0


EQT fund activities

2 1


EQUITY

n TOP-TOY is a market-leading retailer of toys and other children’s products, operating more than 300 stores under two sub-brands, “BR” and “Toys ”R Us”, across the Nordics and Northern Germany. The company’s strategy is focused on strengthening its number one position in the Nordics, while offering customers great shopping experiences both in stores and online. TOP-TOY has a solid omni-channel offering, with a strong growth trajectory for its e-commerce operations. EQT has entered a partnership with the founding Gjørup family, who continues to have a strong representation in the company.

n IFS is a global leader in developing and delivering enterprise software for enterprise resource planning, enterprise asset management and enterprise service management. It offers applications that enable companies to respond quickly to market changes and use resources in a more agile way, in order to achieve better business performance and competitive advantages. IFS was founded in Sweden in 1983 and currently employs around 2,800 people. IFS’s solutions are used globally through a network of local offices and a growing ecosystem of partners and its leading product, IFS Applications™, has over one million users.

n Established in 1928, Eton is a leading global premium men’s shirt brand, offering shirts and linked accessories in approximately 1,450 stores in more than 50 countries. Eton is headquartered in Gånghester, Sweden and has around 190 employees across the world. Historically, the company has mainly implemented a wholesale-based route-to-market strategy, but with a growing share of distribution through its online store and ten physical stores, Eton has doubled the volume of shirts and accessories sold during the last five years to over a million products. Eton plans to grow further through an omni-channel strategy with increased penetration of existing markets and further internationalization, both in psychical stores and online.

n Piab was founded in 1951 by the Swedish Tell family and is a global technology leader within vacuum ejectors, suction cups and vacuum conveyors. The company serves to improve the energy-efficiency, productivity and working environments of customers across a broad range of industries, including food, pharmaceuticals, packaging and automotive. Piab is present in more than 70 countries, through distributors and subsidiaries, and employs approximately 300 people across the world. EQT will focus on further accelerating Piab’s growth through continued investments in R&D and new products, further driving sales efficiency and penetrating prioritized segments and markets.

ETON

TOP-TOY

PIAB

IFS

ACQUISITION JANUARY 2016

COUNTRY SWEDEN

FUND EQT VII

SECTOR CONSUMER GOODS


COUNTRY SWEDEN

FUND EQT VII

SECTOR INDUSTRIALS

ACQUISITION FEBRUARY 2016

COUNTRY SWEDEN

FUND EQT VII

SECTOR TMT


COUNTRY DENMARK

FUND EQT VII


2 2 n INVESTMENT n EXIT


n AcadeMedia, established in 1996, is the largest independent education provider in Northern Europe. The company provides a complete educational offering, spanning from pre-schools to adult education, for approximately 140,000 children and students across 570 units in Sweden, Norway and Germany. AcadeMedia’s primary focus has been on increasing the quality of education, accelerating growth and diversifying its operations, as well as improving utilization in the installed base of schools. The company’s strong growth is a result of the establishment of new units within all segments, recruitment of students and participants to existing units and courses, as well as through acquisitions.

EQUITY

n Kuoni Group was founded in 1906 and is a leading service provider to the global travel industry, with a focus on three core activities. 1) VFS Global is a world-leading visa services provider, operating for 51 governments with around 2,300 application centres in 127 countries. 2) GTA is a distributor of travel services globally, with products sourced from around 90,000 suppliers in 185 countries. GTA provides over 50,000 properties and 15,000 destination services. 3) Global Travel Services sources and coordinates destination services – from accommodation, transportation, tours and activities to venues and event management. EQT intends to enable Kuoni Group to realize its full potential and to grow by investing in new services, strengthening its operational platform, and providing access to capital to pursue strategically important acquisitions.

n Founded in 2001, Sitecore offers a comprehensive customer experience platform – delivered both in the cloud and on-premise – allowing users to personalize and tailor content across the full customer journey. Sitecore supports users in selecting content through powerful analytics, as well as machine learning tools, and has recently also launched a fully integrated e-commerce solution. The company has approximately 800 employees and has served more than 4,600 customers globally. EQT is focused on driving further subscription revenues, continued innovation and expansion of Sitecore’s product offering through R&D and potential acquisitions.

n Lima is an Italy-based manufacturer of orthopaedic devices, with products covering the vast majority of the spectrum ranging from large joint to extremities and both primary and revision implants. Founded in 1945 by the Lualdi family, Lima is an industry innovator and a pioneer in applying additive manufacturing technology in the orthopaedic industry. Its proprietary and highly innovative Trabecular TitaniumTM technology is based on more than 40 years of experience. The company is headquartered in Udine, Italy, and has approximately 840 employees. EQT will support the management’s strategy to grow Lima into a truly global industry innovator.

LIMA

SITECORE

KUONI GROUP ACADEMEDIA

ACQUISITION MARCH 2016

COUNTRY ITALY

FUND EQT VII

SECTOR HEALTHCARE

ACQUISITION MAY 2016

COUNTRY DENMARK

FUND EQT VII

SECTOR TMT

INVESTMENT MAY 2016

COUNTRY SWITZERLAND

FUND EQT VII

SECTOR SERVICES

IPO JUNE 2016

COUNTRY SWEDEN

FUND EQT V

SECTOR SERVICES

2 3


ATOS MEDICAL

APLEONA

PRESS GANEY

AUTOMIC

EQUITY

n Atos Medical is a medical device company with a world market and technology leading position in the market for voice and pulmonary rehabilitation of patients who have undergone Laryngectomy (surgical removal of the voice box). Atos Medical was acquired in 2011 EQT has supported the company’s management with an active and dedicated growth strategy, which has resulted in that the company has almost doubled the size. Significant investments have been made into a global sales force, particularly in the US, Japan, UK and Southern Europe. Today, Atos Medical has the largest dedicated ear, nose and throat sales force in the world.

EXIT JULY 2016

COUNTRY SWEDEN

FUND EQT VI

SECTOR HEALTHCARE

n Apleona is the leading integrated real estate service provider in the DACH region, with a particular stronghold in technical facility services. Apleona delivers services for the entire lifecycle of a property – its customer portfolio includes corporates, banks, insurance companies, as well as investment companies and the public sector in more than 30 countries across five continents. The focus going forward lies on further developing the integrated services offering across its growing European platform. The strategy is to expand Apleona’s already strong platform through organic growth, as well as via acquisitions, and to grow more than the market in Europe.

ACQUISITION SEPTEMBER 2016

COUNTRY GERMANY

FUND EQT VII

SECTOR SERVICES

n With more than 30 years in the industry, Press Ganey is the leading provider of patient experience measurement, performance analytics and strategic advisory solutions for healthcare organizations across the continuum of care. As a strategic business partner to more than 26,000 healthcare organizations, Press Ganey helps clients transform the patient experience and create continuous, sustainable improvement. EQT plans to increase investments in data analytics and expand products that enable healthcare organizations to reduce patient suffering as they improve operational performance.

ACQUISITION OCTOBER 2016

COUNTRY US

FUND EQT VII

SECTOR HEALTHCARE

n Founded in 1985, Automic has become the leading global pure-play vendor for business automation software, providing services to approximately 2,700 customers from a wide range of sectors, such as financial services, retail, telecoms and utilities. Automic was acquired in 2012 and has developed into a category leader in its space, with a differentiated product offering spanning across workload automation, application release automation and service orchestration. In addition to the strong product offering, continuous investment into Automic the sales and marketing as well as selected add-on acquisitions (including the acquisition and integration of Orsyp), allowed the company to nearly double revenues and triple EBITDA. Automic was sold to CA Technologies Inc. in a transaction valuing the company at EUR 600 million.

EXIT JANUARY 2017

COUNTRY AUSTRIA

FUND EQT VI

SECTOR TMT



DOMETIC

SCANDIC

BSN MEDICAL

IVC

EQUITY

n Dometic is a global leader in branded solutions for recreational vehicles, trucks, premium cars, as well as pleasure and work boats. Products include air conditioners, furnaces, water heaters, refrigerators and toilets. Dometic was acquired in 2011 and has been strengthened through several operational initiatives, including optimization of its manufacturing footprint, improving its supply chain, a branding revamp, and investments in product development. Dometic has also been strengthened by several add-ons, most notably the transformational acquisition of Atwood in the US in 2014. EQT was able to successfully sell its remaining shareholding in three subsequent sell-downs in May, August and November 2016.

EXIT/IPO NOVEMBER 2016

COUNTRY SWEDEN

FUND EQT V

SECTOR INDUSTRIALS

n Scandic is the leading Nordic hotel chain, with approximately 230 hotels in seven countries, the majority in the Nordic region, with the rest in other European locations. The company operates in the mid-market segment, with hotels either in the city center or on the outskirts, with access to airports or major road networks. Scandic enjoys a mix of guests from the business, conference and leisure markets. During the EQT ownership period, Scandic had an average annual sales increase of 7%, with corresponding EBITDA growth of 5% per year. EQT was able to successfully sell its remaining shareholding in three subsequent sell-downs in September and November 2016 and March 2017.

EXIT/IPO MARCH 2017

COUNTRY SWEDEN

FUND EQT V

SECTOR SERVICES

n BSN medical is a global medical device company that develops, manufactures and markets wound care, compression therapy and non-invasive orthopaedic products, mainly to hospitals, pharmacies and sanitary shops. The company was acquired in 2012 and during the ownership period, BSN medical has transformed into a dynamic growth platform, which it achieved by shifting into fast growing product segments and increasing its Emerging Markets exposure. EQT’s four years of ownership resulted in increased sales on a constant currency basis by a CAGR of more than 6% and a significant uplift in staff numbers. Today, BSN has sales of over EUR 860 million and more than 6,000 employees worldwide. The company was sold to Svenska Cellulosa Aktiebolaget (SCA), in a transaction valuing BSN medical at EUR 2,740 million.

EXIT DECEMBER 2016

COUNTRY GERMANY

FUND EQT VI

SECTOR HEALTHCARE

n IVC is the largest privately-owned vet care services platform in the UK, with more than 315 sites across the country and an online pet pharmacy. IVC was founded in 2011 through the merger of three veterinary groups, and has since grown rapidly through organic growth as well as a large number of add-on acquisitions. IVC employs approximately 2,700 people, including more than 800 veterinarians. EQT will support IVC in its next phase of further growth and development and in February 2017 announced that IVC will be combined with Evidensia Veterinary Group.


COUNTRY UK

FUND EQT VI & EQT VII

SECTOR SERVICES

2 5


n ELEVATE is a world-leading social compliance assessment and improvement service provider, operating in the rapidly-growing market for supply chain sustainability and risk management. With operations in over 30 countries, the company works with sourcing, procurement, and compliance executives from major US and European companies by providing services to build, implement and operate effective strategic supplier responsibility programs. ELEVATE’s existing management team, under the leadership of the co-founder and CEO, will continue to drive the growth and development of the company with EQT’s support.

n AutoStore is an automated storage and retrieval system, which uses robotics for collecting stored goods in a warehouse, with more than 130 installations in more than 20 countries. AutoStore provides significant improvements in capacity, performance and cost, and represents an optimal solution for meeting the growing demand for automated and efficient warehousing. EQT will support the company in continuing its growth trajectory through further international expansion and through increased R&D efforts, in order to sustain AutoStore’s technology leadership.

n Acquired in 2008, SAG provides engineering, construction, maintenance and operation services for utilities and industrial clients, with a focus on their energy infrastructure. Founded in 1916, SAG is one of Europe’s largest pure-play infrastructure service providers. During the ownership, SAG has significantly enhanced its market-leading position in Germany and advanced its footprint in France and Eastern Europe. The initiatives resulted in sales growth by a CAGR of more than 6% and a significant increase in staff numbers. Today, SAG has sales of over EUR 1.3 billion and more than 8,100 employees across Europe. SAG was sold to SPIE S.A.

n Touhula was founded in 2010 and operates 122 preschools and day care centers across Finland. The company has a unique high-quality education philosophy, which encourages children to partake in natural physical activity and adventure. Touhula complements the welfare services provided by municipalities and increases the options available to parents in choosing day-care provider for their children. The majority of Touhula’s day care centers operate under a voucher model, which ensures equal access to private day care to all Finnish families. EQT’s strategy is to support the continued growth in a long-term, sustainable manner, through both organic expansion and M&A, as well as strengthen the company’s position and quality leadership in the growing Finnish day care market.

AUTOSTORE ELEVATE

SAG TOUHULA

EQUITY MID MARKET

EXIT DECEMBER 2016

COUNTRY GERMANY

FUND EQT V

SECTOR SERVICES


COUNTRY NORWAY

FUND EQT VII

SECTOR INDUSTRIALS


COUNTRY CHINA

FUND EQT MID MARKET

SECTOR SERVICES

ACQUISITION APRIL 2016

COUNTRY FINLAND

FUND EQT MID MARKET

SECTOR SERVICES



n Econ Healthcare is a pioneer in the private nursing home industry in Singapore. The company was founded in 1987 and is a leading provider of elderly care, with over 1,000 beds and market-leading positions in both Singapore and Malaysia. During the ownership, Econ Healthcare has expanded its operations in Malaysia via the addition of a new nursing home in Taman Perling. The company also maintained its leadership position in Singapore, with stable topline growth and being a regular winner at the annual Asia Pacific Eldercare Innovation Awards.

n In.Corp Group is a leading corporate services provider, offering customers core services that span the entire lifecycle of a corporation, from entity incorporation to ongoing maintenance such as corporate secretarial services, outsourced accounting, tax filing and payroll services. Headquartered in Singapore, the company is known for its long-standing relationships with clients and a loyal customer base, serving around 5,000 customers from around the world. EQT plans to continue In.Corp Group’s focus on further consolidation and internationalization.

n Modern Metal is the market leader in high-pressure aluminium die-casting, serving the global automotive, climate control, industrial automation and telecommunication industries. Modern Metal offers comprehensive die-casting solutions, including product and tool design, tooling fabrication, precision CNC machining, surface finishing, and sub-assembly. Modern Metal has long-term relation ships with over 100 global customers spanning across the US, Europe and Asia. The company is headquartered in Hong Kong, with manufac turing facilities in Dongguan and Wuzhou, China. EQT sold its 30% share in Modern Metal to JD Capital, a private equity firm in China.

IN.CORP GROUP

MODERN METAL

ECON HEALTHCARE

MID MARKET

n SFC KOENIG is a leading global supplier of high-end sealing plugs (expanders) and flow control technology. The company is headquartered in Dietikon, Switzerland and has subsidiaries in China, Germany and the US, and services other markets via a global distribution partner network. During the investment period, SFC KOENIG has strengthened its R&D capabilities and embarked on an international expansion path, in order to capture new clients as well as intensify coverage of its existing customer base.

SFC KOENIG

ACQUISITION APRIL 2016

COUNTRY SINGAPORE

FUND EQT MID MARKET

SECTOR SERVICES EXIT JUNE 2016

COUNTRY CHINA

FUND EQT GREATER CHINA II

SECTOR INDUSTRIALS

EXIT JULY 2016

COUNTRY SINGAPORE


SECTOR HEALTHCARE

EXIT AUGUST 2016

COUNTRY SWITZERLAND

FUND EQT EXP CAPITAL II

SECTOR INDUSTRIALS

2 7


n TitanX is a leading supplier of engine cooling solutions to manufacturers of trucks, buses, off-highway equipment and industrial diesel engines and is headquartered in Gothenburg, Sweden. The company has production facilities located in Sweden, the US, Brazil, China and Mexico. TitanX was formerly a division within the French automotive group Valeo and was acquired in 2008. During the ownership, TitanX has been developed from a carve-out of three factories to a global technology leader in the engine and oil cooling space.

n Founded in 2003, TransIP is the largest independent domain name, hosting and Virtual Private Server (“VPS”) provider in the Benelux with approximately 200,000 clients. TransIP is headquartered in Leiden, Netherlands and has around 90 employees. EQT will support the company’s continued expansion across both its existing products and markets, as well as assist TransIP in its pursuit of new growth opportunities. Focus will be on further strengthening the leading position in the tech-savvy market in the Benelux, through its strong DNA and customer-centric approach.

n Founded in 1974, XP Solutions is a leading provider of water infrastructure and flood control software for the civil engineering and environmental sectors. The company’s offerings range from hydraulics analysis software for drainage infrastructure design, storm/flood modeling, and visualization. The company is headquartered in the US with offices in Europe, Australia, and Asia. EQT will support continued growth both domestically and internationally. A particular focus will be on developing XP Solutions’ North American sales function, introducing new products, and expanding its footprint through acquisitions.

n Granngården is a nationwide retail chain offering products focused on gardening, animals and nature. The company was acquired in 2008 and during the ownership period, Granngården has, through significant investments in the store network, IT-systems and marketing, undergone a transformative journey into a modern, integrated and profitable retail chain.

GRANNGÅRDEN TITANX

XP SOLUTIONS

TRANSIP

MID MARKET

EXIT JULY 2016

COUNTRY SWEDEN

FUND EQT OPPORTUNITY


EXIT AUGUST 2016

COUNTRY SWEDEN

FUND EQT OPPORTUNITY

SECTOR INDUSTRIALS

ACQUISITION AUGUST 2016

COUNTRY NETHERLANDS

FUND EQT MID MARKET

SECTOR TMT


COUNTRY US

FUND EQT MID MARKET US

SECTOR TMT



n Utimaco is a leading global provider of specialist professional cyber security and compliance solutions. It is headquartered in Aachen, Germany, with subsidiaries in the US and Italy and further presence in the UK and Singapore. Since 1983, Utimaco has been developing hardware-based, high-security appliances (hardware security modules) and compliance solutions for telecommunication provider regulations (lawful interception and data retention). Today, Utimaco is a global market leader in both segments. Looking ahead, EQT will support the continued development of Utimaco and will actively assist the company in capturing new growth opportunities, particularly through international expansion.

n Adamo provides high-speed internet via its own fiber-network in Spain. The company pioneered the Spanish telecom market by being the first provider to offer 1 Gbit/s services via fiber. Adamo’s network covers over 120,000 households and generated revenues of EUR 7.8 million in 2016. EQT will support the continued development of Adamo and assist the company in further accelerating growth through investments in access fiber roll-out.

n internetstores is Europe’s leading e-commerce company for bikes and outdoor goods, covering an assortment of over 70,000 products and 750 brands. Founded in 2003, the company targets mainstream and sport enthusiast customers in the DACH and Nordic regions. During the ownership period, internetstores has transitioned into profitable growth by strengthening its management team, emphasizing its technology and logistics, as well as by a systematic focus on efficient internationalization.

ADAMO

INTERNETSTORES

UTIMACO

MID MARKET

n Fertin Pharma is the world’s largest independent developer and manufacturer of medicated chewing gum, primarily within Nicotine Replacement Therapy, a pharmaceutical product used to help users quit tobacco use. Furthermore, Fertin develops pharmaceutical chewing gum with different APIs called MediChew, and nutraceutical chewing gum products, Nutraceuticals. The company’s strong market position is based on a unique combination of more than 100 years of chewing gum heritage, profound nicotine knowledge, and strong pharma manufacturing capabilities. With EQT as owner, Fertin Pharma sets out to continue growing its core NRT business while exploring new avenues of growth, such as geographical expansion and new product launches.

FERTIN PHARMA


COUNTRY GERMANY

SECTOR TMT


COUNTRY SPAIN

SECTOR TMT

EXIT DECEMBER 2016

FUND EQT EXP CAPITAL II

COUNTRY GERMANY


ACQUISITION DECEMBER 2016

COUNTRY DENMARK

SECTOR HEALTHCARE

2 9


n Innovyze is a US-based leading provider of smart water infrastructure modelling and simulation software solutions for government agencies, engineering consultants, municipalities and utilities. Founded in 1996, Innovyze is the largest pure-play water-focused software company in the world. The company offers the only suite of water-focused products that span the full infrastructure lifecycle, which are engineered for speed and reliability, and are backed by strong technical support. Innovyze is headquartered in Broomfield, Colorado and has offices in California, the UK and Australia. EQT will support Innovyze in further enhancing its technology innovation, development of new product capabilities, new customer segments, as well as expansion into new geographies.

n GPA Global is an asset light, one-stop-shop, premium packaging and display solutions provider headquartered in Shenzhen, China. The company was founded in 2009 and has approximately 180 employees, offering turnkey packaging solutions from concept design, material selection, engineering, production to distribution. Currently, 99% of the customer base is in the US, spanning across sectors such as consumer electronics, mobile accessories, movies, games and toys. As new owner, EQT will support GPA Global in its drive for further growth and development.

n Japan Home Centre is the leading mass market housewares retail chain in Hong Kong, with a growing pan-Asian presence. EQT acquired a 40% stake in Japan Home Centre from the two founders in 2010. Throughout the ownership, EQT supported management in implementing operational excellence across its store portfolios, increased directly-sourced products to enhance margins, and formulated a development plan and strategies for new markets through acquisitions, joint ventures and organic growth. By 2015, the number of directly-operated stores increased from around 200 in Hong Kong to 357 stores across five jurisdictions.

n Dorner was founded in 1966 and is a leading global provider of purpose-built, high-quality precision conveyor systems, which are utilized in process automation operations to enhance productivity, quality and profitability throughout the production process. Dorner is headquartered in Wisconsin, US and has over 300 employees across its offices in Canada, Mexico, Germany and Malaysia. With a strong management team, a well-respected brand and track record of growth, Dorner is well-positioned to capitalize on the favorable trends in industrial automation. EQT will support the continued development and growth of Dorner, both domestically and internationally, through investment in its salesforce, targeted marketing and a continued push for best-in-class operational execution. Acquisitions of complementary products will also be pursued.

MID MARKET

JAPAN HOME CENTRE

DORNERGPA GLOBAL INNOVYZE

EXIT/IPO DECEMBER 2016

COUNTRY CHINA




COUNTRY CHINA

SECTOR SERVICES


COUNTRY US


SECTOR TMTACQUISITION MARCH 2017

COUNTRY US


SECTOR INDUSTRIALS



RISKMETHODS

VENTURES

n riskmethods provides companies with a comprehensive supply chain risk management solution, for proactive monitoring and assessment of risks in the supply chain. EQT was the main investor in the Series A financing round.

INVESTMENT JANUARY 2016

COUNTRY GERMANY

n Min Doktor is a healthcare web service that offers online doctors visits, where patients can communicate with physicians through messages, phone, or video. Based on the patient’s symptoms, doctors can give diagnosis and send prescriptions directly via the application.


COUNTRY SWEDEN

n myTomorrows is an online healthcare platform that enables users to access drugs that are still in development, either because they are undergoing clinical trials, or because they are already approved in one country but not another.


COUNTRY NETHERLANDS

n Wolt is an application that lets users order food from hundreds of restaurants and get it delivered to their doorstep. Wolt is available in Finland, Sweden, Estonia and Denmark.

INVESTMENT FEBRUARY 2016

COUNTRY FINLAND

n Verto Analytics is a Finnish-American provider of audience measurement solutions. EQT joined the Series B funding and the new investments will be used to advance its global operations within digital media, adtech, mobile app and gaming.

INVESTMENT JUNE 2016

COUNTRY FINLAND/US

n Unomaly provides an algorithm that analyzes data and learns IT systems’ normal behaviour, with the purpose of proactively avoiding them crashing or being breached. EQT joined the Series A funding, with a mission to enhance the company’s product development and global customer operations.

INVESTMENT JUNE 2016

COUNTRY SWEDEN

n 3D Hubs is the world’s largest online marketplace for 3D printing services and is available in over 160 countries. EQT backed the company in its Series B financing round, with a mission to support the company’s rapidly growing professional user base.

INVESTMENT JULY 2016

COUNTRY NETHERLANDS

n Watty’s software lets users identify and break down energy costs from their home appliances in order to reduce their electricity bills. EQT joined Watty to leverage its expansion to additional European markets.


COUNTRY SWEDEN

n Service Partner One offers the first digital multi-service platform for office supplies, cleaning and deliveries and is currently serving more than 20,000 people at 500 offices around Europe. EQT partnered with the Berlin-based company in its Series A funding.


COUNTRY GERMANY

n Small Giant Games is a Finnish mobile games company focused on creating multiplayer first mobile games. EQT led a growth financing round that will be used to market current titles and develop new games.

INVESTMENT MARCH 2017

COUNTRY FINLAND

n Peakon is a provider of employee engagement and people analytics software that collects employee feedback, which is then analysed using machine learning techniques. EQT’s Series A financing round is primarily set to support the company in expanding its teams in machine learning, data-science, and engineering.

n HackerOne is the first vulnerability coordination and “bug bounty” platform. It enlists hackers to improve the IT-security of many companies around the world. The investment is the first in the US for EQT Ventures.

INVESTMENT MARCH 2017

COUNTRY DENMARK/UK

INVESTMENT APRIL 2017

COUNTRY US

MIN DOKTOR

MY TOMORROWS

WOLT

VERTO ANALYTICS

UNOMALY

3D HUBS

WATTY

SERVICE PARTNER ONE

SMALL GIANT GAMES

HACKERONE

PEAKON

3 1


n Direct ChassisLink (DCLI) is a leading provider of marine chassis and asset management services to the US intermodal industry. DCLI has approximately 133,000 chassis in its fleet and manages 86,000 intermodal containers for third parties through its differentiated asset management platform, REZ-1. Carved out of Maersk in 2012, DCLI today serves around 3,400 customers across 375 active rental locations, including the two largest shipping lines. Through multiple avenues of organic and acquisitive growth, there is significant opportunity to further expand and transform the business under EQT’s ownership.

n EEW Energy From Waste (EEW) is the market-leading energy-from-waste company in Germany, and is also active in Luxembourg and the Netherlands. EEW was acquired in 2013 and operates an installed waste capacity of around 4.7 million tonnes per year, making an important contribution to the European sustainable economy and playing a vital part in the local energy infrastructure. Under the ownership, the company transformed into a highly efficient organization focused on providing long-term, environmentally friendly waste disposal solutions and the production of energy from waste. EEW was sold to Hong Kong-based Beijing Enterprises Holdings Ltd.

n Parkia is the leading pure off-street car park operator in Spain, with 58 car parks and approximately 27,000 parking spaces in Spain and Andorra, operated under long-term concession agreements with mainly municipalities. EQT acquired Parkia in July 2011 and during the ownership, the company has doubled its car park portfolio. In addition Parkia has increased car park revenues through the introduction of dedicated and incentivized commercial teams, new product offerings and campaigns, adopting new technologies to improve the user experience, and implementing cost efficiency initiatives. During the ownership period, EQT has supported management in commercializing its product offering, renegotiating concessions and has pursued a dedicated M&A strategy.

PARKIA

DIRECT CHASSILINK

EEW ENERGY FROM WASTE

n Adven is the leading provider of sustainable and business-critical energy infrastructure and services in Finland, Sweden and Estonia. Adven owns and operates a diversified, high-quality asset base at the sites of its industrial, municipal, and real estate customers. Since the aquisition in 2012, the company has transformed from a utility corporate orphan into a growing comprehensive green energy infrastructure company, with full stand-alone capabilities. The company’s customer focus, commercial mindset and performace-oriented culture were further developed, both the management team and the governance of the company were strengthened, and its core business processes were improved. Adven was sold to a consortium comprising of AMP Capital and Infracapital.

ADVEN

INFRASTRUCTURE

EXIT JANUARY 2016

COUNTRY FINLAND

FUND EQT INFRASTRUCTURE I

SECTOR ENERGY & ENVIRONMENTAL

EXIT MARCH 2016

COUNTRY GERMANY

FUND EQT INFRASTRUCTURE II


ACQUISITION JUNE 2016

COUNTRY US


SECTOR TRANSPORT & LOGISTICS

EXIT SEPTEMBER 2016

COUNTRY SPAIN

FUND EQT INFRASTRUCTURE I




n Unilode Aviation Solutions is the global leader in pooling, management, maintenance and repair of unit load devices (ULDs) used for transportation of cargo and baggage in the aviation industry. Headquartered in Switzerland, along with regional operations centers in the UK, Thailand and the US, the company manages approximately 100,000 ULDs, and serves more than 90 airlines across an unparalleled network of 48 global services centers and 420 airports. EQT will support its continued development by actively assisting the company in expanding its asset base, to offer pooling, management, maintenance and repair to more airlines globally.

n Founded in 1999, GB Railfreight is the third largest rail freight operator in the UK, and provides a wide range of rail transport solutions and rail services to its customers. The company’s fleet consists of over 130 locomotives and 1,100 wagons, moving approximately 15% of the UK’s rail freight. GB Railfreight was acquired as an add-on to Hector Rail Group and is an integral part of the strategy to develop Hector Rail Group into a leading independent pan-European rail freight operator.

UNILODE AVIATION SOLUTIONS

GB RAILFREIGHT

INFRASTRUCTURE

n DELTA provides multimedia services and energy to over 140,000 households and businesses, mainly in the Dutch province of Zeeland. DELTA’s hybrid fiber-coaxial (HFC) network of over 6,000 km passes 192,000 homes, which corresponds to around 90% of the total number of homes in Zeeland. Supported by a strong industrial board, which contributes both multimedia and energy expertise, DELTA’s experienced management team is striving to develop the company into a performance-oriented, commercially effective and operationally efficient infrastructure access provider.

n GETEC was founded in 1993 and is one of the market leaders in energy services in Germany. In 2015, the company operated around 1,050 decentralized energy production plants and employed around 1,165 people. GETEC provides services for industrial customers, municipalities and real estate owners under long-term contracts. EQT acquired a majority shareholding in three subsidiaries of GETEC Energie Holding GmbH, with the aim to further strengthen and expand its activities in partnership with the founder, Dr. Karl Gerhold. The strategy includes identifying and capturing growth opportunities in Germany and expanding into neighbouring markets.

ACQUISITION NOVEMBER 2016

COUNTRY SWITZERLAND



ACQUISITION NOVEMBER 2016

COUNTRY UK


SECTOR TRANSPORT & LOGISTICSACQUISITION FEBRUARY 2017

COUNTRY NETHERLANDS

FUND EQT INFRASTRUCTURE III

SECTOR TMT ACQUISITION FEBRUARY 2017

COUNTRY GERMANY



GETEC

DELTA

3 3


n Le Doublon is a 30,000 spm office investment, located on Avenue Dubonnet in Courbevoie, in Western Paris between the city’s central business district and La Defense. The investment is comprised of a two building office campus, with a communal restaurant, substantial landscaped gardens and 740 parking spaces. The distressed acquisition represents an opportunity to create high-quality office space at a compelling rental basis for tenants, in close proximity to Paris’ two key business districts. An experienced project team was retained, a renovation permit was filed to improve the façade, and extensive discussions have been held with in-place tenants to prepare for the works.

n Rue Lauriston is a 5,700 sqm office investment, located on Rue Lauriston in Paris’ central business district, close to the Arc de Triomphe. The acquisition, an office refurbishment project, was made in joint venture with local partner STAM Europe and represents a rare opportunity to create high-quality office space in the central business district of Paris, where supply is limited and expected future demand is solid. Since the purchase, a permit amendment was filed to improve the building and a fixed price construction contract was signed. Works started in January 2017 and are expected to be completed by the fourth quarter in 2018.

RUE LAURISTON

LE DOUBLON

n GlobalConnect is Denmark’s leading alternative provider of B2B data communication services, owning and operating 12,500 km of fiber across Denmark and Northern Germany. GlobalConnect is also the largest Danish data center provider, with a capacity of approximately 13,000 sqm of secure co-location space. EQT acquired GlobalConnect with the mission to support new growth initiatives and to commercialize its extensive fiber network.

n Lumos Networks is a leading fiber-based data and broadband service provider in the US Mid-Atlantic region. The customer base includes wireless carriers, healthcare providers, local government agencies, financial institutions, and educational institutions across an approximately 14,800 km fiber network. The company enables end-to-end connectivity across 1,600 unique Fiber to the Cell connections, 36 data centers, and approximately 2,000 buildings. EQT is committed to supporting the continued growth and expansion of the company, through multiple identified avenues for both organic and acquisitive growth.

GLOBAL CONNECT

INFRASTRUCTURE REAL ESTATE

LUMOS NETWORKS


COUNTRY DENMARK


SECTOR TMT


COUNTRY US


SECTOR TMT ACQUISITION JULY 2016

COUNTRY FRANCE

SECTOR REAL ESTATE


COUNTRY FRANCE

SECTOR REAL ESTATE



n Täby Terrass indirectly owns a site with a planning permit for a residential scheme containing 146 studio apartments. The site is located in the Stockholm suburb of Täby and the apartments will be offered to end users through a tenant owner’s association. Construction is scheduled to commence during the second quarter of 2017.

n Technologiepark is a 116,000 sqm office park located in close proximity to Cologne’s central business district. The acquisition comprises seven different office buildings located within the park. Each building is accompanied with an element of parking, with more than 2,800 spaces available. EQT has identified a number of value-add strategies, with a focus on updating the physical structure of the buildings and improving the tenant experience in the park to stabilize the assets for institutional sale as a core/core-plus product.

TÄBY TERRASS

TECHNOLOGIEPARK

REAL ESTATE

n Marken is a leading provider of specialized logistics and support services to the pharmaceutical, biotechnology and clinical research industries. Marken’s main business is the handling and transportation of biological specimens and temperature-sensitive clinical trial supplies, coordinated and managed locally through more than 30 offices globally. EQT invested in early 2013, following a successful restructuring of the business in December 2012. After a period of significant investment in the business, underpinned by a supportive lender and ownership group, Marken developed its business model into a full-service provider to the clinical trials industry, generating substantive organic growth. UPS acquired Marken from its current shareholders, including EQT, and the successful sale validated the industrial attractiveness of the company.

CREDIT

MARKEN

n Established in 1987, Mikeva is the third largest provider of care, rehabilitation and residential services to patients in Finland with disabilities, mental health conditions, addictions or behavior problems, as well as the elderly. The company operates 98 facilities and is headquartered in Helsinki, Finland. G Square invested in 2012 to help the company carry on its organic and external development strategy. EQT provided a flexible unitranche facility to refinance the existing bank debt and to support the development of its network of care homes.

MIKEVA


COUNTRY GERMANY

SECTOR REAL ESTATE

INVESTMENT NOVEMBER 2016

COUNTRY SWEDEN

SECTOR REAL ESTATE

INVESTMENT 2016

COUNTRY FINLAND

FUND EQT MID MARKET CREDIT I

SECTOR HEALTHCARE

EXIT 2016

COUNTRY US

FUND EQT CREDIT OPPORTUNITIES II

SECTOR SERVICES

N.B. a selected number of the EQT Credit funds’ transactions

3 5


n P&I is the market leader in providing HR software to the mid-market/public sector in Germany and German-speaking countries. The company has a focus on payroll software and benefits from high-quality, recurring revenues from a diversified and sticky customer base with low churn. Following strong historical performance, EQT financed a recapitalization of the business under HgCapital’s ownership. P&I was sold by HgCapital to Permira and EQT was selected as a preferred lender to finance the acquisition and increase its investment at a loan-to-value ratio of approximately 45%.

n EQT provided a unitranche facility to Paymentsense alongside another European private debt fund. As Europe’s largest merchant service provider, Paymentsense enables over 50,000 SMEs to process over EUR 5.5 million worth of card payments each year. From contactless card machines to integrated solutions and online payment services, Paymentsense supplies small businesses with card processing solutions that allow them to take payments in store, online, over the phone and on the move.

P&I

PAYMENTSENSE

CREDIT

INVESTMENT 2016

COUNTRY UK

FUND EQT MID MARKET CREDIT I

SECTOR SERVICES

INVESTMENT 2016

COUNTRY GERMANY

FUND EQT MID MARKET CREDIT I / EQT CREDIT OPPORTUNITIES II

SECTOR SERVICES



EQT’s industrial approach

3 7


CREDIT

SENIOR DEBT

MID-MARKET CREDIT

CREDIT OPP

REAL ASSETS

INFRASTRUCTURE

REAL ESTATE

PRIVATE CAPITAL

EQUITY

MID MARKET

VENTURES

3 8


INVESTMENT ADVISORY TEAMS EQT Partners is divided into separate teams advising the various funds within EQT’s overall investment strategies – Private Capital (including teams within Equity, Mid Market and Ventures), Real Assets (including teams within Infrastructure and Real Estate) and Credit (including teams within Senior Debt, Mid-Market Credit and Credit Opportunity).

The investment advisory teams have vast investment expertise, industry and sector knowledge, and established networks in local business communities and societies. By maintaining a “local-with-locals” approach, the investment advisory professionals are uniquely positioned to analyze companies and the markets in which they operate, as well as develop proprietary investment angles.

The teams’ industrial approach, combined with an ability to see what is “beyond the obvious” in terms of growth potential, industry consolidation or structural change, are key advantages when scanning investment opportunities and monitoring the development of portfolio companies.

In addition, the Credit investment advisory team brings specialist skills in the European credit markets, including originating, structuring and restructuring transactions, as well as in debt capital markets and portfolio management.

In 2015, EQT Partners launched an initiative to scale up its skills and capabilities within the tech and digital space. Since then, EQT’s Digital Team has been working with a dual role – supporting EQT’s existing portfolio companies and pollinating the EQT organization with digital skills and new, more efficient ways of working.

Another new business area is Real Estate, where EQT Partners has recruited leading specialists from the European property sector to investigate potential investment opportunities.

EXPLORING OPPORTUNITIES The investment advisory teams, in collaboration with EQT’s network of independent Industrial Advisors, seek to identify potential control or co-control equity investments in companies with strong or improving market positions, reliable cash flows and significant opportunities for

value creation. This combined approach ensures a strong pipeline of possible transactions across EQT’s investment strategies. Targeted companies should have the potential for improvement and value creation by investing in growth, in performance improvement and active participation in industry consolidation through add-on acquisitions.

The focus is on finding companies with competitive advantages, such as operational excellence, unique brand qualities, and superior product characteristics – the essential building blocks of a strong market position. When assessing a company’s growth potential, an array of factors are considered, such as addressable market size, potential for new products and geographical expansion, distribution channels and customer satisfaction.

The equity investment opportunities typically considered, range from EUR 25 million to EUR 600 million, depending on investment strategy and fund advised. The investment advisory teams also monitor and analyze the position of the portfolio company during EQT funds’ ownership with respect to recommending an exit. EQT funds are highly focused on securing a professional handover of a strong and sustainable company to the new owner.

STRATEGIC SECTOR APPROACH In order to have the best possible business intelligence, spot trends and opportunities, and analyze markets, industries and investment themes, EQT applies a strategic sector approach. Currently, EQT Partners has six sector teams: Healthcare, TMT, Services, Consumer Goods, Industrials and Energy & Environmental.

Both the EQT Industrial Advisors and the investment advisory professionals of EQT Partners, as well as management within the EQT portfolio companies, actively engage in relevant sector teams. This allows the sharing of know-how and experience and helps capture a broad spectrum of ideas across industries, countries, regions and investment strategies. Keeping an ear close to the ground is a key priority for the various sector teams, to ensure EQT stays “ahead of the curve” at all times.

Read more about the investments strategies and portfolio companies on www.eqtpartners.com

The various funds within EQT’s different investment strategies are advised by specialized sector teams within EQT Partners. Their key priority is to ensure that EQT is constantly “ahead of the curve”.

Investment strategies

3 9


EQT applies a Corporate Governance Model for all majority-owned portfolio companies, with clear roles and responsibilities. Once a new portfolio company is acquired, a board of directors is appointed with a Chairman, generally an independent Industrial Advisor, supported by other sector/industry specialists from EQT’s Industrial Network, and an investment advisory Partner. The board of directors defines and monitors strategic plans in the portfolio companies and ensures that management gets the relevant support and resources to run the company in an efficient, responsible and accountable manner. The board is carefully structured for each portfolio company and its specific needs, and is usually kept small in order to ensure strong commitment and swift decision-making. The board of directors appoints the CEO.

ALIGNED INTERESTAn important requirement for strong governance is that management, the board of directors and EQT, share the same interest. This is achieved by inviting the board and senior management to invest in the portfolio company. A common mindset and shared agenda is also established, through an agreed business plan and a high level of transparency.

TROIKA FORUMAn important pillar within the EQT Corporate Governance Model is the TROIKA, consisting of the Chairman, the

investment advisory Partner and the portfolio company CEO. The TROIKA work closely together on an informal basis, and is a sparring partner to the CEO, whilst keeping the owner constantly updated on the business. All parties contribute with their competence and strive towards the same mission – making the company stronger, more sustainable and well-positioned to prosper even after EQT’s ownership. The TROIKA does not have decision-making powers and is in no way a substitute for the portfolio company board of directors.

CONTINUOUS EVALUATIONContinuous performance evaluation is a crucial part of the EQT Corporate Governance Model. The performance of the CEO, Chairman, the overall board of directors and the investment advisory professionals is assessed once a year in a comprehensive appraisal process. This process ensures that relevant skills are present on the board and that governance works in accordance with EQT’s objectives and principles. This evaluation can lead to changes in the board composition.

The EQT Corporate Governance Model is applied to the portfolio companies in which the EQT funds make control or co-control investments. In those investments where the EQT funds do not have such control or co-control, an appropriate governance model is adapted. This currently relates to the EQT Credit and EQT Ventures funds.

Corporate governance modelThe EQT Corporate Governance Model builds on clear roles and responsibilities for management of the portfolio company, its board of directors and EQT, complemented by a TROIKA forum to facilitate growth.

CEO

CHAIRMAN EQT PARTNER

TROIKA FORUM

4 0


The Industrial Network is a key competitive advantage that adds value across the EQT platform. The Industrial Network also includes entrepreneurs and former politicians – all contributing skills relevant to the various investment and ownership phases. They are an integral part of both EQT’s model and the industrial approach, providing competence from operational and strategic experience gained in their fields of expertise.

A DIFFERENTIATOR IN SUPPORTING CHANGE The Industrial Advisors are true differentiators in supporting change, performance and growth in the portfolio companies and are also strategically important when sourcing and analyzing potential investments. During EQT funds’ ownership, the Industrial Advisors provide a vital source of competence to the portfolio companies, as board members and by supporting their strategic, operational and financial development. As the majority of EQT’s Industrial Advisors have been part of the Industrial Network for many years, and several have served as CEOs or board members of EQT portfolio companies before, they have accumulated experience of helping companies grow through the EQT Corporate Governance Model.

BROAD KNOWLEDGE SHARING EQT holds regular Industrial Network meetings, providing a forum for broad knowledge sharing and professional development, as well as ensuring that the Industrial Advisors and the investment advisory teams act in accordance with EQT’s investment objectives and principles. The Industrial Advisors are evaluated on a continuous basis, and new advisors are added to the network when required, to ensure that relevant knowledge and competencies are available. Potential new network members are usually invited to serve on the board of directors of a portfolio company, or to act as consultants in investment projects. This interaction with existing network members gives the potential member an opportunity to become familiar with the EQT Corporate Governance Model and simultaneously allows EQT to assess how the potential network member deals with “live” issues.

A sample list of members of the EQT Industrial Network is available on www.eqtpartners.com

Industrial networkEQT has a global network comprising more than 250 independent Industrial Advisors, who are current or former business executives of major international corporations and successful companies, in a variety of industries.

4 1


Growth and development

EQT funds invest in good companies across the world, with a mission to support their development into great and sustainable companies. By providing access to ownership skills, operational expertise and an international perspective, EQT can help acquired companies grow and prosper, both under EQT funds’ ownership and their future owners.

The portfolio companies develop and grow through the implementation of industrial strategies geared towards growth and operational excellence. These strategies are driven by the appointed CEO and board members, generally from EQT’s Industrial Network, and monitored by the investment advisory professionals. Development and growth are at the core of the value creation. Sales growth and margin expansion are achieved through multiple strategies, including geographic expansion, new product development, acquisitions and strategic reorientation. The most tangible result of the EQT model is that portfolio companies have on average, increased sales by 10%, the number of employees by 9% and EBITDA by 11% annually during EQT funds’ ownership. The largest part of the return on investments can be attributed to operational improvements, such as increased sales and efficiency gains. In total, more than EUR 3 billion was distributed to investors in EQT’s funds in 2016. Since EQT’s first fund was raised in 1995, a total of approximately EUR 24 billion has been distributed to investors.

GROWTH AND DEVELOPMENT STRATEGIES EQT’s model allows the portfolio companies to develop and grow with a high sense of urgency. Consensus around strategic direction for a company is a prerequisite, as the partnership between management and the board of directors is key when developing companies. Once a company has been acquired, EQT appoints a board of directors, which in turn applies EQT’s Corporate Governance Model and, when needed, the management team is strengthened. The strategy acts as a roadmap for value creation and progress is closely monitored. Key strategic measures typically include:

SALES GROWTH ■n Market and product expansion – targeting new customer groups or broadening the product offering, which could mean new products in existing categories or applying a proven technology to new product categories or uses.

■n Internationalization – a key benefit, given access to the extensive international network of Industrial Advisors and EQT’s global platform.

■n Add-on acquisitions – step-by-step expansion by acquiring competitors or companies with similar or complementary products, technologies or market pre-sence. The ambition is often to achieve economies of scale and drive internal efficiencies. It may also mean driving consolidation of a fragmented industry.

OPERATIONAL EXCELLENCE Access to broad expertise in management helps the portfolio companies to increase efficiency and profitability. State-of the-art benchmarking and assessment methods are installed. The ambition is typically to become “best-in-class” in such areas as production, customer relations, digitalization, sustainability and service.

STRATEGIC REPOSITIONING Utilizing changing industry dynamics, investing in future technologies and divesting non-core businesses, to create a base for rapid expansion.

OPTIMIZING CAPITAL STRUCTURE The EQT funds have access to the financial expertise that can be applied to create efficient capital structures and, ultimately, prepare the improved company for the transition to a new owner.

A LONG-TERM PERSPECTIVE EQT has a long-term ownership approach and stands by the portfolio companies in good times as well as bad. The decision to hand over the portfolio company to a new owner is only taken once the development plans have been accomplished. On average, EQT funds’ ownership period has been 4.5 years.

There are typically three ways to hand over a portfolio company to a new owner: ■n Initial public offering (IPO) – floating part or the whole of a portfolio company on a public stock exchange. EQT often stays on as a substantial owner for a period of time

■n Trade sale – selling a portfolio company to an industrial buyer

■n Secondary buyout – selling a portfolio company to a financial buyer

The core of EQT’s value creation strategy is to “future-proof” companies through growth and development. From sales growth to capital restructuring, the roadmap for value creation is closely monitored.

4 2


EXITS BY TYPE

SOURCING OF INVESTMENTS

INVESTMENTS BY SIZE

INVESTMENTS BY INDUSTRY*

INVESTMENTS BY REGION*

HOLDING PERIOD

0 1 2 3 4 5 6 7 8 9 YEARS

24%

Industrials

21%17%15%

3%

15%

5%

Consumergoods

TMTHealth-care

Energy & Environ-

mental

Transport& o shore

Services

54%6%

SOUTH EAST ASIA 3%CEE1%BENELUX1%

NORTH AMERICA6%

REST OF WORLD 1%

EUROPE7%22%

NORDIC

DACHGREATER

CHINA

15–30<15 30–50 50–100 100–200 200–500 >500 €m

Secondary buyout 22%

Other 3%

Management buyout 1%

Privatization/Government 2%

Public 10%Private/Family 33%

Corporate 29%

10%11%24%31%11%13%

7%

15% 15%20% 19% 19%

5%

46%TRADE SALE

34%SECONDARY

BUYOUT

20%IPO

0 1 2 3 4 5 6 7 8 9 YEARS

24%

Industrials

21%17%15%

3%

15%

5%

Consumergoods

TMTHealth-care

Energy & Environ-

mental

Transport& o shore

Services

54%6%


NORTH AMERICA6%

REST OF WORLD 1%

EUROPE7%22%

NORDIC

DACHGREATER

CHINA

15–30<15 30–50 50–100 100–200 200–500 >500 €m


Other 3%




Corporate 29%

10%11%24%31%11%13%

7%

15% 15%20% 19% 19%

5%

46%TRADE SALE

34%SECONDARY

BUYOUT

20%IPO

0 1 2 3 4 5 6 7 8 9 YEARS

24%

Industrials

21%17%15%

3%

15%

5%

Consumergoods

TMTHealth-care

Energy & Environ-

mental

Transport& o shore

Services

54%6%


NORTH AMERICA6%

REST OF WORLD 1%

EUROPE7%22%

NORDIC

DACHGREATER

CHINA

15–30<15 30–50 50–100 100–200 200–500 >500 €m


Other 3%




Corporate 29%

10%11%24%31%11%13%

7%

15% 15%20% 19% 19%

5%

46%TRADE SALE

34%SECONDARY

BUYOUT

20%IPO

0 1 2 3 4 5 6 7 8 9 YEARS

24%

Industrials

21%17%15%

3%

15%

5%

Consumergoods

TMTHealth-care

Energy & Environ-

mental

Transport& o shore

Services

54%6%


NORTH AMERICA6%

REST OF WORLD 1%

EUROPE7%22%

NORDIC

DACHGREATER

CHINA

15–30<15 30–50 50–100 100–200 200–500 >500 €m


Other 3%




Corporate 29%

10%11%24%31%11%13%

7%

15% 15%20% 19% 19%

5%

46%TRADE SALE

34%SECONDARY

BUYOUT

20%IPO

0 1 2 3 4 5 6 7 8 9 YEARS

24%

Industrials

21%17%15%

3%

15%

5%

Consumergoods

TMTHealth-care

Energy & Environ-

mental

Transport& o shore

Services

54%6%


NORTH AMERICA6%

REST OF WORLD 1%

EUROPE7%22%

NORDIC

DACHGREATER

CHINA

15–30<15 30–50 50–100 100–200 200–500 >500 €m


Other 3%




Corporate 29%

10%11%24%31%11%13%

7%

15% 15%20% 19% 19%

5%

46%TRADE SALE

34%SECONDARY

BUYOUT

20%IPO

0 1 2 3 4 5 6 7 8 9 YEARS

24%

Industrials

21%17%15%

3%

15%

5%

Consumergoods

TMTHealth-care

Energy & Environ-

mental

Transport& o shore

Services

54%6%


NORTH AMERICA6%

REST OF WORLD 1%

EUROPE7%22%

NORDIC

DACHGREATER

CHINA

15–30<15 30–50 50–100 100–200 200–500 >500 €m


Other 3%




Corporate 29%

10%11%24%31%11%13%

7%

15% 15%20% 19% 19%

5%

46%TRADE SALE

34%SECONDARY

BUYOUT

20%IPO

A WIDE INVESTMENT SPECTRA EQT sources investments in various ways, for example via corporate spin-offs or public-to-private transactions. A priority is driving deal flow through proactive networking, both by the Industrial Advisors and by EQT Partners’

investment advisory professionals. The majority of the investments made by EQT funds during the past year have been in sectors perceived as attractive for generating long-term value, namely within Healthcare, TMT, Services, Consumer Goods, Industrials and Energy & Environmental.

The charts show aggregated statistics of investments made by EQT since inception. The EQT Credit funds’ and EQT Ventures fund’s investments are not included.

* The charts show total numbers of investments.

4 3


Genuine management of environmental, social and governance (ESG) factors is fundamental to business success and strong investment performance. By having ESG as an integral part of the business model, and by aspiring to apply best practice, EQT and portfolio companies capture opportunities and mitigate risks for long-term value creation and enhanced competitiveness.

STRATEGY, POLICY AND TEAM A sustainable approach to investment and ownership has been part of EQT’s DNA from the start. In 2010, to formalize what was already implicitly part of both the investment process and ownership model, EQT adopted a Responsible Investment (RI) policy. This policy describes what is expected of EQT as an investor, as well as what EQT expects from portfolio companies. In 2010, EQT became the first Nordic private equity firm to become a signatory to the United Nations-supported Principles for Responsible Investment (PRI) Initiative. EQT has a dedicated RI Team that reports to EQT’s Managing Partner and CEO. The RI Team supports the organization in its continuous integration of responsible investment and ownership practices. This includes supporting efforts within portfolio companies on sustainability matters, as well as engaging with external stakeholders.

INVESTMENT During the investment screening and due diligence process, EQT considers and evaluates ESG factors as an integral part of its overall assessment of potential targets. The outcome of this analysis is documented in the investment recommendation materials presented to the EQT funds’ board of directors, to ensure that RI Factors (environment, labor & human rights and ethics) are taken into account when making investment decisions.

OWNERSHIP EQT’s Corporate Governance Model provides the EQT funds with the ability to exercise ownership and to assist portfolio companies in building long-term sustainable value. During 2016, EQT further developed the EQT Sustainability Blueprint, a guidance document designed for portfolio companies as the primary target group to stimulate a holistic, innovative and strategic perspective on sustainability matters and support value creation. The updated guidance includes an introduction to the Sustainable Development Goals (SDGs) and strengthened expectations of portfolio companies to report on an EQT core set of sustainability key performance indicators (KPIs) as well as to over time identify, report and progress on sustainability-related KPIs specific to their business, in order to enhance value creation and portfolio companies’ contribution to society.

A responsible investor and ownerBeing sustainable is good business, which is why integrating environmental, social and governance factors into everyday activities is vital.

THE SIX PRINCIPLES AND EQT’S ACTIONS

The PRI is an international network of investors working together to ensure that ESG issues are given appropriate consideration in investment decision-making and ownership practices. The PRI was initiated in 2005, and by 2017 nearly 1,700 investment managers, asset owners and service providers across the globe have become signatories.

PRI PRINCIPLES EQT ACTIONSWe will incorporate ESG issues into investment analysis and decision-making processes. 1 Analysis of ESG factors included in investment-recommendation materials and considered in

the investment decision-making process.

We will be active owners and incorporate ESG issues into our ownership policies and practices. 2 The boards of directors of the portfolio companies are to address ESG factors at least

annually and are supported through access to best practice information and tools.

We will seek appropriate disclosure on ESG issues by the entities in which we invest. 3 Annual follow-up with the portfolio companies including ESG policies or similar.

We will promote acceptance and implementation of the principles within the investment industry. 4 Continuous promotion through stakeholder dialogues and participation in various events.

We will work together to enhance our effectiveness in implementing the Principles. 5 Active member of the Invest Europe Responsible Investment Roundtable.

We will report on our activities and progress towards implementing the Principles. 6

Annual publication of RI Transparency Report according to the PRI Reporting Framework. All EQT responses are publicly available.

The complete EQT Responsible Investment Policy alongside EQT’s RI Transparency Reports are available on www.eqtpartners.com

4 4


In 2016, the world continued to experience extreme heatwaves, flooding, loss of biodiversity and other harmful impacts on the environment. These developments also present a risk to social stability. But where there are risks, there are also opportunities – opportunities to make a difference, to provide a solution and be rewarded for it. The climate change agenda concerns us all – investors and owners, corporates and individuals.

EQT recognizes it is through the portfolio companies that EQT has its greatest impact. Environmental aspects are addressed through various means, for example by investing in companies providing climate-solutions, supporting sustainable product/service innovation and engaging with portfolio companies on non-financial transparency. With its long-term view on investment, EQT can play an important role in the transition to a low-carbon economy.

EQT also recognizes that it is critical to lead by example and as such is committed to reduce its own environmental impact as an organization. In practice this

means that EQT measures, strives to reduce, offsets and communicates the organization’s greenhouse gas (GHG) emissions.

In 2016, EQT had total GHG emissions equaling 12,000 tons of CO2e, of which the majority, 95.5%, came from business travel. The other main emission source was energy usage, 3.4%. Measures taken to reduce emissions include further investing into new digital solutions, converting to LED light and choosing renewable energy to heat/cool offices. Business travel, however, is critical to EQT’s daily operations, given the importance of personal meetings and site visits. For 2016, EQT is therefore offsetting all its emissions through a combined approach – by supporting increased use and supply of sustainable biofuel for the aviation industry and a wind power plant.

For more information, please see the EQT GHG Emissions Report, publicly available on www.eqtpartners.com.

The climate change agenda concerns us all. In recent years, EQT has intensified its engagement through a number of initiatives.

Climate action

Total EQT emissions by scope 2016 (ton CO2e)

100% of reported emissions from EQT’s own operations have been o�set

80% of EQT o�ces use LED lightning

Sustainable travel initiatives – doubling video conferencing facilities

100%Scope 1: 0% Scope 2: 1.5% 2x

Scope 3:98.5%

Total EQT emissions by scope 2016 (ton CO2e)

100% of reported emissions from EQT’s own operations have been o�set

80% of EQT o�ces use LED lightning

Sustainable travel initiatives – doubling video conferencing facilities

100%Scope 1: 0% Scope 2: 1.5% 2x

Scope 3:98.5%

The GHG emitted by EQT’s offices and staff are calculated and reported in accordance with the GHG Protocol in collaboration with an external advisor. Through the GHG Protocol framework, EQT’s emissions are divided into three scopes:

Scope 1 No sources from direct emissions have been identified, i.e. no owned sources

Scope 2 Direct emissions from the generation of purchased electricity

Scope 3 Indirect emissions for heating/cooling, business travel, office consumables and waste.

GHG PROTOCOL AND SCOPES

4 5


EQT CONTINUES TO GROW EQT is a fast-growing international organization, with offices in 14 countries on three continents. 2016 was a busy year for our organization as we welcomed more than 120 new colleagues to join the firm. We are proud to state that EQT now employs approximately 480 people, of which 290 work in investment advisory teams. We are a truly international alternative investments firm, as our colleagues represent over 30 nationalities from around the world.

CULTURE AT EQTThe best way to describe EQT as an organization is through our strong culture, based on our corporate values, which we apply in our day-to-day business, regardless of team, function or country. EQT’s culture is essential to our organization, and in 2007 EQT formalized what was already a part of our DNA – our core values. For us, it is not enough that someone delivers results, they must also behave in accordance with our values. Given that our organization has grown substantially in recent years, this is even more important. We firmly believe that keeping our culture intact is the key to being successful.

CAREER AT EQT At EQT, everyone has clearly defined roles and responsibilities, and our culture gives employees a mandate to drive change. By being an integrated firm, tools and best practices can be shared across the investment strategies to support an entrepreneurial and high-performing environment. It also enables team members to gain experience from other investment strategies and work in new geographies and offices. EQT’s Career Development Committees have the role to oversee and manage the career development of each individual.

A HIGH PERFORMANCE CULTURE EQT applies a simple, but effective, Performance Management Process, which is shared across all parts of the organization. It consists of three steps during a calendar year: ■n Target setting and commitment ■n Execution and feedback ■n Performance assessment and reward

The performance process takes operational performance, leadership and the corporate values into account. Opportunities are offered for differentiated rewards, which means that top-level performance is rewarded throughout a career path at EQT.

THE EQT ACADEMY EQT acknowledges that tools are necessary for individual development, as well as effective on-boarding of new colleagues. The courses within the EQT Academy follow people throughout their career at EQT. This gives employees the opportunity to develop and expand knowledge of their functional expertise, leadership skills and EQT’s values.

On-boarding of new employees follows a systematic, but simple program that starts before joining EQT and lasts throughout the first 12 months. It includes e-Learning, structured introduction to key individuals, global introduction days with other newly joined colleagues, an individual “buddy”, and entry into the regular EQT Academy courses.

EQT’s most important asset is its people. EQT believes in developing people continuously in a systematic way, with the ambition of supporting each employee to perform to their full potential.

Working at EQT

Ambitious means believing that good enough is never good enough, there is always room for improvement

High performing means giving people responsibility and freedom to act and base evaluation on performance

Respectful means acting with integrity and having respect for each other and external stakeholders in everything we do

Industrial means having a long-term view on value creation by taking an industrial and operational approach to the business

Entrepreneurial means being innovative, action-oriented and having a sense of urgency about driving change

Informal means being non-hierarchical – everyone is encouraged and expected to speak their mind

Transparent means being open and honest, with each other as well as with external stakeholders

EQT’S VALUES

Tomas Lindén, Global Head of Talent

4 6


EQT fund facts

4 7


EQT’s investor base is truly global and comprises around 400 institutional investors. Among the investors are some of the leading institutions in the world. These include insurance companies, financial institutions, pension funds, sovereign wealth funds, fund-of-funds, endowments and foundations, as well as family offices. Family offices have been important for EQT since inception. In addition to being significant investors in various EQT funds, they also make valuable contributions to the Industrial Network, as they are often active in industries and businesses that may be of interest to EQT.

IN CLOSE DIALOGUE EQT strives to foster a close relationship with its investors, and providing timely, transparent and accurate information is an important part of this. In addition to a continuous dialogue, EQT gathers investors, Industrial Advisors, portfolio company CEOs and investment advisory professionals once a year for the EQT Annual

Investors’ Meeting, where all current portfolio companies of the various EQT funds are reviewed in detail. The aim of this meeting is to provide investors with a comprehensive update on current trading, the state of the markets in which the EQT funds invest, and a general market outlook. It also offers an opportunity to network and ask questions.

HIGH-QUALITY INSTITUTIONAL INVESTORS The EQT funds are backed by high-quality institutional investors such as pension funds, insurance companies and sovereign wealth funds, as well as family offices and entrepreneurs. EQT funds’ investor base is also diversified in terms of geographies. The industrial holding company, Investor AB, is a sponsor and anchor investor in a vast majority of the EQT funds. Investor AB’s investments in each fund varies, but is typically around 10%.

InvestorsEQT has a broad set of blue chip investors from all over the world, many of which have invested in the EQT funds since inception. A continuous dialogue is an important part of building and maintaining these long-term relationships.

10%

39%4%

30%17%NORDIC

REST OF EUROPE

REST OF WORLD ASIA PACIFIC

AMERICAS

INSURANCE/OTHER FINACIAL

ENDOWMENTS/FAMILY OFFICES/

FOUNDATIONS

PENSION FUNDSFUND-OF-FUNDS/GATEKEEPERS

SOVEREIGNWEALTHFUNDS

32%19% 26%12%11%The charts show commitments in current EQT funds.

COMMITMENTS BY REGION

COMMITMENTS BY TYPE

4 8


Fund structure

EQT has several investment strategies. Each investment strategy focuses on assets with certain characteristics. For instance, the Equity investment strategy typically seeks market-leading, larger companies, whereas the Credit investment strategy typically seeks opportunities in corporate debt. In addition, a fund typically also has a mandate to invest primarily within a certain geographical area (for example Northern Europe or the US). This overview is intended as an introduction to closed-end EQT funds in general, but is not necessarily representative of all EQT branded funds.

The term of an EQT fund is typically 7–10 years, with a possible extension of up to two years. Usually, investments are made within the first half and divestments during the second half of the life of the fund. A long-term perspective and the ability to meet commitments over time are essential for an investor in an EQT fund, as the commitment will only be drawn when needed in connection with an investment or capital injection. Correspondingly, capital will be returned to investors over time as assets are divested or refinanced.

The guidelines for the governance and specific terms of the EQT funds are set out in the legal documentation

entered into between the respective fund and its investors. Currently, each EQT fund has a Fund Manager and/or General Partner, with its own board of directors and in most cases also an Investment Advisory Committee. The Fund Manager/General Partner is the decision-making body for the fund. Consequently, the Fund Manager/General Partner is responsible for the decision-making with respect to investments and divestments.

The board of directors of the fund’s Fund Manager/General Partner are advised by the investment advisor. The Investment Advisory Committee evaluates and makes recommendations to the Fund Manager/General Partner regarding whether to follow the advice given by the Investment Advisor in relation to investment and divestment decisions. Existing EQT funds raised until December 2011 are managed from Guernsey. EQT funds raised after January 2012 are managed from the Netherlands, Luxembourg and the UK, where EQT Fund Managers are licensed under the AIFMD. Future EQT funds will be domiciled in Luxembourg.

EQT has raised 22 funds with approximately EUR 35 billion in committed capital. More than EUR 22 billion has been invested in around 170 companies since EQT’s inception.

INVESTMENTS

FUND MANAGERS

INVES

TMEN

T ADV

ISO

RSINVESTORS

FUND

CAPIT

AL RETURN

CAPITAL

FEE

FEE

ADVICE

MANAGEMENT

RETURN

4 9


EQT FUNDS RAISED SINCE 1995

Each EQT fund has a General Partner and/or Fund Manager with its own board of directors and Investment Advisory Committee. For information about the funds’ board of directors and Investment Advisory Committees, please visit www.eqtpartners.com

FUND INV STRATEGY VINTAGE SIZE (EUR M) STATUSEQT I EQUITY 1995 349 Closed for new investmentsEQT II EQUITY 1998 676 Closed for new investmentsEQT DANMARK EQUITY 1998 135 Closed for new investmentsEQT FINLAND EQUITY 1999 138 Closed for new investmentsEQT III EQUITY 2001 2,000 Closed for new investmentsEQT EXPANSION CAPITAL I MID MARKET 2003 189 Closed for new investmentsEQT IV EQUITY 2004 2,500 Closed for new investmentsEQT OPPORTUNITY SPECIAL SITUATIONS 2006 372 Closed for new investmentsEQT GREATER CHINA II MID MARKET 2006 535* Closed for new investmentsEQT V EQUITY 2006 4,250 Closed for new investmentsEQT EXPANSION CAPITAL II MID MARKET 2007 474 Closed for new investmentsEQT INFRASTRUCTURE I INFRASTRUCTURE 2008 1,167 Closed for new investmentsEQT CREDIT I CREDIT 2010 321 Closed for new investmentsEQT VI EQUITY 2011 4,815 Closed for new investmentsEQT INFRASTRUCTURE II INFRASTRUCTURE 2013 1,938 Closed for new investmentsEQT CREDIT II CREDIT 2013 845 Closed for new investmentsEQT MID MARKET MID MARKET 2013 1,054 Closed for new investmentsEQT VII EQUITY 2015 6,750EQT MID MARKET US MID MARKET 2015 726* EQT MID-MARKET CREDIT CREDIT 2016 530EQT VENTURES VENTURES 2016 566EQT INFRASTRUCTURE III INFRASTRUCTURE 2017 4,000*USD MFunds that have had their final closing are listed above.

Funds and governance

THE PRIVATE EQUITY FUND LIFE CYCLE

Year 1 2 3 4 5 6 7 8 9 10 11 12

FUNDRAISING

SOURCING AND ENTRY

OWNERSHIP PERIOD

DIVESTMENT

5 0


People and contacts

5 1


Andreas Aschenbrenner Equity

Munich, GermanyJoined 2014

Alex DardenInfrastructureNew York, USJoined 2008

Stefan GlevénInfrastructure

Stockholm, SwedenJoined 2004

Jerry HeMid Market

Shanghai, ChinaJoined 2016

Michael BauerEquity

Zurich, SwitzerlandJoined 2009

Matthias FacklerInfrastructure


Lennart BlecherDeputy Managing

Partner Head of EQT Real Assets

Zurich, Switzerland Joined 2007

Edouard Fernandez Real EstateLondon, UKJoined 2015

Andreas HuberInfrastructure


Masoud Homayoun Infrastructure


Marcus BrenneckeDeputy Head of EQT Equity


Andreas Fischer Mid Market


Morten HummelmoseEquity

Copenhagen/New YorkJoined 2006

Caspar CallerströmCOO


Tak Wai CHUNGMid MarketSingapore

Joined 2009

Per FranzénEquity


Conni JonssonChairman


Mads DitlevsenEquity

Copenhagen, DenmarkJoined 2004

Lars Jörnow Ventures


Albert GustafssonEquity


Florian FunkMid Market


Johan DettelMid Market


Paul JohnsonCredit

London, UKJoined 2007

Rikke Kjær NielsenMid Market


PARTNERS

5 2


Eric Liu Equity

New York, USJoined 2014

Jan StåhlbergVice ChairmanNew York, USJoined 1995

Harry KlagsbrunEquity


Rob Rackind Real EstateLondon, UKJoined 2015

Cyril TergimanCredit


Stephan LeithnerEquity


Thomas von KochManaging Partner

CEOStockholm, Sweden

Joined 1994

Anders MisundEquity

Oslo, NorwayJoined 2007

Åsa RiisbergEquity


Hjalmar Winbladh Head of EQT Ventures Stockholm, Sweden

Joined 2015

Andrew KonopelskiHead of EQT Credit

StrategiesLondon, UKJoined 2008

Martin MokMid MarketHong KongJoined 2001

Paul de RomeCredit


James YuEquity


Daniel PerezInfrastructureMadrid, Spain

Joined 2008

Kees Koolen Ventures


Kristiaan NieuwenburgEquity


Christian SindingDeputy Managing

PartnerHead of EQT EquityZurich, Switzerland

Joined 1998

Dominik SteinEquity


Fredrik ÅttingMunich, Germany

Joined 1994

Erwin ThompsonInfrastructureNew York, USJoined 2009

Jannik Kruse PetersenMid Market


Matthew Levine Mid Market


Marcus WallinderDeputy Head

of Investor Relations Stockholm, Sweden

Joined 2009

Vesa KoskinenMid Market

Helsinki, FinlandJoined 2004

Jussi SaarinenHead of Investor

RelationsStockholm, Sweden

Joined 2008

Brendan ScollansMid Market


5 3


Carlota Sanchez-MarcoManaging Director


Johan ByggeChairman of EQT Asia

Pacific

Jussi SaarinenHead of Investor

RelationsPartner


Paola MalehManaging Director


Marcus WallinderDeputy Head

of Investor Relations Partner


Adil HaqueManaging Director


Darlene SammonManaging Director


Nina NornholmHead of

CommunicationsStockholm, Sweden

Joined 2007

Therése LennehagHead of Responsible

InvestmentStockholm, Sweden

Joined 2009

Olof HernellCDO


Tomas LindénGlobal Head of TalentStockholm, Sweden

Joined 2012

Lena AlmefeltGeneral Counsel


Caspar CallerströmCOO

Stockholm, Sweden Joined 1996

Jim ArrolManaging Director

St Peter PortGuernsey

Joined 2012

Peter VeldmanHead of Fund ManagementLuxembourgJoined 2014

Adam LarssonManaging Director

AmsterdamThe Netherlands

Joined 2007

Jason HowardManaging Director


INVESTOR RELATIO

NS

FUND M

ANAGERS

LOC

AL CH

AIRMEN

OPERATIO

NS

Morten HummelmoseEquity

Copenhagen/New YorkJoined 2006

5 4


BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

Executive Committee from left: Tomas Lindén, Global Head of Talent Hjalmar Winbladh, Partner and Head of EQT Ventures Thomas von Koch, Managing Partner and CEO Lennart Blecher, Partner, Deputy Managing Partner and Head of EQT Real Assets Christian Sinding, Partner, Deputy Managing Partner and Head of EQT Equity Jussi Saarinen, Partner and Head of Investor Relations Caspar Callerström, Partner and COO Andrew Konopelski, Partner and Head of EQT Credit Strategies

Board of directors from top left: Peter Wallenberg Jr., board member Johan Forsell, board member Conni Jonsson, Chairman, Partner Finn Rausing, board member Jan Ståhlberg, Vice Chairman, Partner Leif Östling, board member Thomas von Koch, Managing Partner and CEO

5 5


EQT’s General Partner/Fund Manager offices are based in Guernsey, Luxembourg, the Netherlands and the UK. For full address details please visit www.eqtpartners.com

EQT PARTNERS ASIA LTD1708 Hutchison House

10 Harcourt RoadCentral, Hong Kong

China+852 2801 6823

EQT PARTNERS SHANGHAI LTDUnit 1507-08 CITIC Square

1168 Nanjing Road West Shanghai, 200041

China+86 21 6113 5868

EQT PARTNERS DENMARKStrandvejen 58, 5th floor

DK-2900 HellerupDenmark

+45 33 12 12 36

EQT PARTNERS OYEteläesplanadi 20FI-00130 Helsinki

Finland+358 9 6962 470

EQT PARTNERS GMBHLeopoldstraße 8D-80802 Munich

Germany+49 89 25 54 99 00

EQT FUNDS MANAGEMENT LTDLevel 4 North

St Julian’s Court St Julian’s Avenue

St Peter Port Guernsey GY1 1 WA

+44 1481 722 278

EQT FUND MANAGEMENT S.À R.L.23, Rue AldringenL-1118 Luxembourg

Grand Duchy of Luxembourg+352 26 73 26 26

CBTJ FINANICAL SERVICES B.V.World Trade Center Schiphol

H-Tower, Floor 4Schiphol Boulevard 355

1118 BJ SchipholThe Netherlands +31 20 577 6670

EQT PARTNERS AB DUTCH BRANCH World Trade Center Schiphol

H-Tower, Floor 4Schiphol Boulevard 355

1118 BJ SchipholThe Netherlands +31 20 262 4000

EQT PARTNERS AS Dronning Mauds gate 1

0250 OsloNorway

+47 23 23 75 50

EQT PARTNERS SINGAPORE PTE LTD 1 Raffles Place #31-61

One Raffles Place Tower 2Singapore 048616

+65 6595 1830

EQT PARTNERS AB SPANISH BRANCHTorre Serrano

Calle Marques de Villamagna, 3 Planta 1128001 Madrid

Spain + 34 629 186 930

EQT ABHovslagargatan 3111 48 Stockholm

Sweden+46 8 506 55 300

EQT PARTNERS AGBahnhofstrasse 20

CH-8001 ZürichSwitzerland

+41 44 266 6800

EQT PARTNERS UK ADVISORS LLP30 Broadwick Street, 3rd Floor

London, W1F 8JB UK

+44 20 7430 5510

EQT PARTNERS UK ADVISORS II LLP30 Broadwick Street, 3rd Floor

London, W1F 8JB UK

+ 44 208 432 5400

EQT SERVICES (UK) LTD30 Broadwick Street, 3rd Floor

London, W1F 8JB UK

+44 20 7430 5510

EQT PARTNERS INC Grace Building

1114 Avenue of the Americas, 45th FloorNew York, NY 10036

+1 917 281 0850

Contact information

5 6


EQT EQT AB (previously EQT Holdings AB) and its subsidiaries, save with respect to any historical statement of fact when it shall mean the General Partners and/or Managers of certain EQT funds together with their affiliates, as the context requires.

On page 22 to 36 references to EQT refer to the relevant fund mentioned in the fact box.

EQT PARTNERS EQT Partners AB and its subsidiaries appointed as Investment Advisor (or sub advisors) to the General Partners and/or Managers of EQT funds.

PARTNER An individual partner at EQT Partners.

EQT FUNDS Various EQT-branded funds and any successor funds to such funds, together with any other EQT branded fund. An overview of EQT funds can be found on page 50.

INVESTMENT STRATEGY The investment strategy of the respective EQT fund.

EQT CREDIT As the context requires, one or more of the EQT funds investing under the Credit investment strategies or the team of EQT Partners investment advisory professionals who advise the General Partners and/or Managers of the EQT Credit funds.

EQT EQUITY As the context requires, one or more of the EQT funds investing under the Equity investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or Managers of the EQT Equity funds.

EQT INFRASTRUCTURE As the context requires, one or more of the EQT funds investing under the Infrastructure investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or Managers of the EQT Infrastructure funds.

EQT MID MARKET As the context requires, one or more of the EQT funds investing under the Mid Market investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or Managers of the EQT Mid Market funds (including EQT Greater China II, EQT Expansion Capital I and II funds).

EQT VENTURESAs the context requires, one or more of the EQT funds investing under the Ventures investment strategy or the team of EQT Partners investment advisory professionals who advise the General Partners and/or Managers of the EQT Ventures funds.

DEVELOPING COMPANIES As used in this document, the term “developing companies” (and other similar terms used herein) are references to the overall commitment of EQT funds to supporting the development of the portfolio companies under their ownership.

EQT funds invest in portfolio companies with a desire to see those entities develop under EQT’s portfolio company corporate governance model, via the appointment of strong industrial boards who work with their management teams to determine, drive and execute value creation strategies; leveraging financial backing, experience and networks as appropriate.

This ongoing development process is monitored with the advice and assistance of EQT Partners.

Definitions

5 7


5 8


EQT portfolio

ANTICIMEXFund EQT VI

Entry July 2012Country Sweden

Anticimex is a leading international specialist within preventive pest control.

ADAMOEntry February 2017

Country SpainAdamo is a Spanish fiber-based service provider delivering high-speed internet services via its own fiber-based access network in Spain.

APLEONAFund EQT VII

Entry September 2016Country Germany

Apleona is the no. 1 integrated Real Estate service provider in the DACH region with a particular stronghold in technical facility services.

ACADEMEDIAFund EQT V

Entry June 2010Country Sweden

AcadeMedia is the largest education company in Europe with operations spanning pre- and compulsory school, upper secondary school and adult education.

AUTOSTOREFund EQT VII

Entry January 2017Country Norway

AutoStore is an automated storage and retrieval system which uses robotics for collecting stored goods in warehouses in more than 20 countries.

BUREAU VAN DIJKFund EQT VI

Entry September 2014Country Netherlands

Bureau van Dijk is a leading global provider of private company information and business intelligence.

CHARLESTONFund EQT Infrastructure II

Entry April 2014Country Germany

Charleston pursues a buy-and-build strategy in the German nursing home market.

AVENSOFund EQT Mid Market

Entry October 2013Country Germany

Avenso is dedicated to bringing affordable high-quality photographic art and digital photo development services to a wider audience through innovative multi-channel store concepts.

CBR Fund EQT V

Entry April 2007Country Germany

CBR is one of the major players in the German womenswear apparel market with its two established brands, Street One and Cecil.

DATAFLOWFund EQT Mid Market

Entry July 2014Country China

Dataflow offers its clients tailored primary source verification services, with high integrity and quality that are scalable, cost efficient and provide a quick turnaround time.

BACKWERKFund EQT Mid Market

Entry January 2014Country Germany

BackWerk is Germany’s leading franchise system in the self-service bakery and quick service food market.

CHINA F&BFund EQT Mid Market

Entry August 2013Country China

China F&B operates two renowned international restaurant chains, Dairy Queen (DQ) and Papa John’s Pizza (PPJ) in China.

BROADNETFund EQT V and EQT VI

Entry February 2012Country Norway

Broadnet is a leading Norwegian telecom operator.

COROMATIC GROUPFund EQT Expansion Capital II


Coromatic is the leading provider of critical facility solutions, safeguarding the availability of mission-critical power and data communications.

The section excludes the Credit funds’ and the Venture fund’s investments

CONTANDAFund EQT Infrastructure II

Entry February 2013Country US

Contanda is a premier provider of storage and logistics services to owners of bulk liquid products in North America.

For more information, please visit www.eqtpartners.com

DIRECT CHASSISLINKFund Infrastructure II

Entry May 2016Country US

Direct ChassisLink (DCLI) is a leading provider of marine chassis and asset management services to the U.S. intermodal industry.

DORNERFund EQT Mid Market US

Entry March 2017Country US

Dorner provides high-quality precision conveyor systems utilized in process automation operations.

DELTAFund Infrastructure IIIEntry February 2017Country Netherlands

DELTA is a leading telecom infrastructure owner and operator, provider of multimedia services and supplier of energy.

E.I.S. AIRCRAFTFund EQT Mid Market Entry February 2015Country Germany

With over 60 years in the aviation industry, E.I.S. is a well-established and innovative product and service provider for the high-growth segments of the aerospace market.

ELEVATEFund EQT Mid MarketEntry February 2016

Country ChinaELEVATE is one of the world’s leading social compliance assessment and improvement service providers.

ETONFund EQT VII

Entry January 2016Country Sweden

Eton is a leading global premium men’s shirt brand, offering shirts and directly linked accessories.

GLOBALCONNECTFund Infra III

Entry February 2017Country Denmark

GlobalConnect is Denmark’s leading alternative provider of B2B data communication services.

GPA GLOBAL Entry March 2017

Country ChinaGPA Global is a one-stop-shop, premium packaging and display solutions provider

FERTIN PHARMAEntry January 2017Country Denmark

Fertin Pharma is the world’s largest independent developer and manufacturer of medicated chewing gum.

HECTOR RAILFund EQT Infrastructure II

Entry October 2014Country Sweden

Hector Rail was founded in 2004 and has grown to become the leading private rail freight company in Sweden.

EVIDENSIA Fund EQT VI

Entry October 2014Country Sweden

Evidensia is today the largest veterinarian services provider in Northern Europe, with approximately 160 clinics and hospitals across Sweden, Norway, Denmark, Finland, Germany, Netherlands, and Switzerland.

GETECFund Infrastructure IIIEntry February 2017Country Germany

GETEC was founded in 1993 and today it is one of the market leaders in energy services in Germany.

FOCUSVISIONFund EQT Mid MarketEntry December 2015

Country USFocusVision is a global leader in technology-enabled services within the marketing research and intelligence market.

FÆRCH PLASTFund EQT VI

Entry March 2014Country Denmark

Færch Plast is a European leader in the production of thermoformed plastic trays.

FLYING TIGER COPENHAGENFund EQT VI

Entry January 2013Country Denmark

Tiger is a “variety retailer” of value-for-money products with approximately 600 stores across 26 European countries, Japan and US.


IFSFund EQT VII

Entry Ongoing public bidCountry Sweden

IFS is active in the development, sale and implementation of enterprise software.

HTL-STREFAFund EQT V

Entry December 2009Country Poland

HTL-Strefa is the globally unrivalled, leading developer and provider of blood micro-sampling medical devices.

HUSCOMPAGNIETFund EQT VI

Entry August 2015Country Denmark

HusCompagniet is a value-for-money brick-house retailer with a market-leading position in Denmark.

INDEPENDENT VETCAREFund EQT VI, EQT VIIEntry January 2017

Country UKIndependent Vetcare is the largest privately owned vetcare services platform in the UK with more than 290 sites and an online pet pharmacy.

IN.CORP GROUPFund EQT Mid Market

Entry April 2016Country Singapore

In.Corp Group operates as a leading corporate services provider offering customers core services that span the entire lifecycle of a corporation.

I-MEDFund EQT Mid Market

Entry April 2014Country Australia

I-MED is one of the world’s leading diagnostic imaging (”DI”) providers.

IP-ONLYFund EQT Mid Market


IP-Only is a leading provider of high-capacity fiber based data communication and datacenter services in Sweden.

ISLALINKFund EQT Infrastructure II

Entry November 2014Country Spain

IslaLink is an independent and neutral telecom infrastructure company focusing on submarine fiber optic cables.

ITSLEARNINGFund EQT Expansion Capital II

Entry April 2013Country Norway

itslearning is a leading international provider of a pedagogy focused cloud-based Learning Management System (LMS).

LIMAFund EQT VII

Entry March 2016Country Italy

Lima is a leading orthopaedic implant manufacturer based in Italy.

KFZTEILE24Fund EQT Mid Market Entry December 2015

Country GermanyKfzteile24 is one of the leading full-range online retailers for automotive spare parts and accessories in Germany.

MONGSTAD SUPPLY BASEFund EQT Infrastructure II

Entry August 2015Country Norway

Mongstad Administrasjon AS (”Mongstad Supply Base”) is a leading oil and gas port in Norway, strategically located close to an area with high offshore activity.

LE DOUBLONEntry July 2016

Country FranceLe Doublon is a 30,000 square metre office investment, comprising a two building office campus with a communal restaurant, substantial landscaped gardens and 740 parking spaces.

KUONI GROUPFund EQT VII

Entry May 2016Country Switzerland

Kuoni Group, founded in 1906, is a leading service provider to the global travel industry.

LAOBAIXINGFund EQT Greater China II

Entry September 2008Country China

LaoBaiXing is China’s first discount pharmacy superstore chain.

For more information, please visit www.eqtpartners.com

MUSTI JA MIRRIFund EQT Mid MarketEntry December 2014

Country FinlandMusti ja Mirri Group is the leading pet specialty retailer in the Nordic countries.

NORDIC AVIATION CAPITALFund EQT VI

Entry October 2015Country Denmark

Nordic Aviation Capital is the world’s leading regional aircraft trading and leasing company.

PIABFund EQT VII

Entry Jan 2016Country Sweden

Piab is the global technology leader within industrial vacuum automation components and material handling solutions.

PRESS GANEYFund EQT VII

Entry October 2016Country US

Press Ganey is the leading U.S. provider of patient experience measurement, performance analytics and strategic advisory solutions for healthcare organizations.

PEREGRINE MIDSTREAM PARTNERSFund EQT Infrastructure

Entry August 2011Country US

Peregrine Midstream Partners is a midstream oil and gas company that owns and operates Ryckman Creek.

PSM INTERNATIONALFund EQT Greater China II

Entry May 2007Country China

PSM International is a multinational full-service provider of fastening solutions to a diverse customer base.

QINTERRAFund EQT VI

Entry January 2014Country Norway

Qinterra is a leading provider of well intervention services and wireline tractor technology to the Oil & Gas industry.

ROESER GROUPFund EQT Expansion Capital II

Entry August 2010Country Germany

Roeser Group is the leading German value-add, manufacturer-neutral distributor of medical supplies to hospitals.

SIVANTOSFund EQT VI

Entry January 2015Country Germany

Sivantos is a leading global pure play producer of hearing aids and accessories with more than 100 years of experience.

STORMGEOFund EQT Mid Market

Entry April 2014Country Norway

StormGeo is a leading global provider of software-based decision-support for weather-sensitive operations.

RUE LAURISTONEntry July 2016

Country FranceRue Lauriston is a 5,700 square metre office refurbishment project, permitted to create high-quality office space in the central business district of Paris.

SPORTRADARFund EQT VI

Entry June 2014Country Switzerland

Sportradar is a market-leading provider of live sports information and services, operating at the interface between sports and entertainment.

SITECOREFund EQT VII

Entry May 2016Country Denmark

Sitecore is a global leading provider of customer experience management software.

SWISS SMILEFund EQT Mid Market

Entry August 2013Country Switzerland

Swiss Smile is a leading quality dental chain in Switzerland.

SYNAGROFund EQT Infrastructure II

Entry August 2013Country US

Synagro is the leading US provider of residuals management solutions and land application services.

UNILODE AVIATION SOLUTIONS Fund EQT Infrastructure II

Entry November 2016Country Switzerland

Unilode Aviation Solutions is the global leader in services related to unit load devices (ULDs) used for transportation of cargo and baggage in the aviation industry.


TÄBY TERRASSEntry November 2016

Country SwedenTäby Terrass indirectly owns a site in the suburbs of Stockholm residentially permitted to build 146 studio apartments.

TAMPNETFund EQT Infrastructure and

EQT Infrastructure IIEntry November 2012

Country NorwayTampnet is the only independent supplier of high-capacity and low-latency communication to offshore oil and gas installations in the Gulf of Mexico and the North Sea.

TIA TECHNOLOGYFund EQT Mid Market

Entry June 2014Country Denmark

TIA Technology is the leading supplier of standard software systems for the insurance industry in Europe.

TERVEYSTALOFund EQT VI

Entry December 2013Country Finland

Terveystalo is the leading private healthcare service provider in Finland.

TECHNOLOGIEPARKEntry September 2016

Country GermanyTechnologiepark is a 116,155 square metre office park comprising seven office buildings located within the park and 2,863 parking spaces.

TOP-TOYFund EQT VII

Entry January 2016Country Denmark

TOP-TOY is the leading toys retailer in the Nordic region.

TOUHULAFund EQT Mid Market

Entry April 2016Country Finland

Touhula operates around 100 pre-schools and day-care centers across Finland.

XP SOLUTIONSFund EQT Mid Market US

Entry September 2016Country US

XP Solutions, founded in 1974, is a leading provider of water infrastructure and flood control software for civil engineering and environmental sectors.

UNITED DIGITAL GROUPFund EQT Expansion Capital II

Entry June 2011Country Germany

UDG is an agency group for digital marketing services and communication.

TRANSIPFund EQT Mid Market

Entry August 2016Country Netherlands

TransIP, founded in 2003, is the largest independent domain name, hosting and Virtual Private Server (“VPS”) provider in the Benelux.

UTIMACOEntry January 2017Country Germany

Utimaco is a leading global provider of specialist professional cyber security and compliance solutions.

WASHFund EQT Infrastructure II

Entry May 2015Country US

WASH is a leading North American route-based laundry services company.

www.eqtpartners.com

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