Real Assets

Seeks to identify investment opportunities in medium-sized infrastructure businesses with potential for operational value creation in the Nordic region, Continental Europe and North America.

The EQT Real Assets team

The EQT Real Assets team consists of around 50 Investment Advisory Professionals based in Helsinki, London, Madrid, Munich, New York, Stockholm and Zurich.

The EQT Real Assets Investment Advisory team has vast investment expertise and knowledge within the infrastructure and real estate sector, as well as established networks in the local business communities and societies. By maintaining a "local-with-locals" presence, the Investment Advisory Professionals are uniquely positioned to analyze infrastructure companies and the markets in which they operate, to develop proprietary investment opportunities. The teams’ industrial approach, combined with an ability to see what is "beyond the obvious" in terms of operational value creation potential, are key advantages when scanning investment opportunities and monitoring portfolio company development.

Exploring investment opportunities

The team, in collaboration with the EQT Industrial Advisors, seeks to identify control or co-control equity investments in medium-sized infrastructure companies that have, or have the prospect of, strong, reliable, protected cash flows and significant opportunities for value creation. Smaller commitments are also reviewed for the potential to use such companies as platforms for subsequent transformative add-on acquisitions. On unique but rare occasions, pre-revenue investments are investigated where major permits are in place and there is substantial visibility to reliable protected cash flow generation. The typical equity investment opportunity ranges between EUR 50 million and EUR 250 million.

Several types of opportunities, including stand-alone operating infrastructure companies, infrastructure assets that have evolved into corporate orphans and government privatizations are evaluated by the team. Ideal investment targets are operating companies in industries with regulated infrastructure, concession based infrastructure, market-driven infrastructure or infrastructure-related services.

When it comes to themes and sectors, focus is on companies within power generation, electricity and gas networks, airports, rail transportation, ports, storage, waste, parking facilities, telecommunication towers and infrastructure-related services.

Joining forces for development

Once a portfolio company has been acquired, EQT appoints a Board of Directors with a Chairman (an EQT Industrial Advisor with relevant management background), supported by other sector/industry specialists from the EQT Industrial Network and an EQT Real Assets partner. The Board of Directors defines and monitors strategic plans and ensures that management gets the appropriate support and resources to run the portfolio company in an efficient, responsible and accountable manner.

There is also the more informal forum called the TROIKA, consisting of the Chairman, the EQT Infrastructure partner and the portfolio company CEO. The TROIKA works closely together on an informal and continuous basis and is a sparring partner to the CEO. He or she can address and get advice and support on different topics such as operational or strategic issues. The TROIKA offers the portfolio company an extra supportive forum and keeps the owners updated on the business and progress. The TROIKA does not have decision-making powers and is in no way a substitute for the portfolio company Board of Directors.

All parties involved – owners, board and management – invest and contribute skills and expertise, striving towards the same goal of making the company stronger, more sustainable and well-positioned to continue to prosper also after EQT’s ownership has concluded.

The team also monitors and analyzes the position of the portfolio company during EQT’s ownership with respect to recommending an exit. EQT is highly focused on securing a professional hand over of a strong and sustainable company to the new owner.