The typical lifetime of an EQT fund is 10 years, with a possible extension of up to two years. Usually, investments are made within the first five years and exits within the last five years of the life of an EQT 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 injections. Correspondingly, capital will be returned to investors over time as portfolio companies are sold or refinanced.
The guidelines for the governance of the EQT funds are set out in the legal documentation entered into between the respective fund and its investors.
Each EQT fund has a General Partner or Manager with its own Board of Directors and Investment Advisory Committee. The General Partner invests alongside the fund investors and is the decision-making body for the fund. During the life of a fund, the General Partner is responsible for the decision making with respect to investments and divestments.
The Board of Directors of the fund’s General Partner makes investment and divestment decisions, based on recommendations from the Investment Advisory Committee and advice from the investment advisor. The Investment Advisory Committee evaluates and makes recommendations to the General Partner as to whether or not to follow the advice given by the investment advisor.
EQT funds raised until December 2011 are managed from Guernsey. EQT funds raised after January 2012 are managed from the Netherlands, Luxembourg or the UK.