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EQT mulls growth options
Posted on Tuesday, 11 September 2018 13:57
EQT Partners is reviewing options to further strengthen its balance sheet to support continued growth globally on a long-term sustainable basis, the managing partner and chief executive of the private equity house said in a statement.
While Thomas von Koch did not reveal further information about the options, it is believed the review will look into a potential initial public offering (IPO), though discussions are still at an early stage.
Another possibility could be the introduction of an external investor, though a sale of the entire company is not on the cards, a source told Bloomberg.
The person added the buyout house does not intend to make a formal decision on ways to bolster its balance sheet, which it views as a necessary requirement for ongoing growth, before the second half of 2019.
EQT has expanded significantly since 2014 by entering three new investment areas, namely venture, real estate and public value, and established strategies have brought total capital raised since inception in 1994 to about EUR 50.00 billion.
According to its website, the company has average annual sales and earnings before interest, tax, depreciation and amortisation growth of 10.0 per cent and 11.0 per cent, respectively.
EQT has offices in 14 countries on three continents, “with a strong trajectory for further international expansion”, which will be directed through two recent senior board appointments.
Former Goldman Sachs head of human capital Edith Cooper and the ex-chairman of McKinsey, Gordon Orr, are expected to support global growth and “ongoing strategic development”.
Zephyr, the M&A database published by Bureau van Dijk, shows there have only been 155 IPOs globally by a private equity firm, of which 72 listings were by those based in Western Europe, including Partners Group Holding of Switzerland.
© Zephus Ltd