The EQT Mid Market advisory team
The EQT Mid Market Asia advisory team consists of almost 20 Investment Advisory Professionals based in Hong Kong, Shanghai and Singapore.
The EQT Mid Market Asia team has significant investment expertise, industry and sector knowledge, and established networks in the local business communities and societies. Whilst having a strong sector approach and by maintaining a “local-with-locals“ presence, the team is uniquely positioned to analyze companies and the markets in which they operate, and to develop proprietary investment opportunities. The teams’ industrial and thematic 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 portfolio company development.
Exploring investment opportunities
The team, in close collaboration with EQT’s broad network of Industrial Advisors, which are selected and retained along the sectors, seek to identify potential control or co-control investments in medium-sized companies with attractive value creation opportunities. Focus is on buyouts and growth equity in family- and entrepreneur owned businesses, corporate orphans and public-to-private transactions. The typical equity investment opportunity ranges between USD 40 million and USD 100 million in Greater China and Southeast Asia.
The focus is on finding companies with ambitious owners and managers that can benefit from EQT’s industrial approach, international expertise and network as well as from the EQT corporate governance model. The team only investigates investment opportunities where there is a clear potential to support the further development of the company in question. Other investment themes of interest are cross-border expansion and ties between Europe and Asia.
EQT’s expertise in supporting business development and growth as well as the internationalization expertise are often decisive factors for company owners when selecting EQT as partner or new owner.
Joining forces for development
Once a portfolio company has been acquired, EQT typically appoints a Board of Directors with a Chairman (an EQT Industrial Advisor with relevant management background, or in a co-control deal, the founder of the business who rolls over share into the next phase of growth) supported by other sector/industry specialists from the EQT Industrial Network and an EQT Mid Market Asia 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 a dynamic, efficient and responsible manner.
There is also the more informal forum called the TROIKA consisting of the Chairman, the portfolio company CEO and the EQT Mid Market Asia Partner. The TROIKA works closely together on an informal and continuous basis, which provides a sounding board to the CEO. He or she can address and get advice and support on different topics such as operational or strategic issues. 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. EQT’s in-house digital team also supports the portfolio companies to accelerate expertise and capabilities within tech and the digital space in order to future-proof the companies for the long-run.
The team 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.