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EQT AB (publ) Year-end Report 2024

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STOCKHOLM, Jan. 23, 2025 /PRNewswire/ — Gearing up for long-term growth  

“Private markets are returning to their long-term growth trajectory. The global economy is growing, paced by Asia and the US, central banks have cut interest rates, and capital markets are robust albeit volatile. We live in times of rapid technological and societal shifts. At EQT we continuously adapt, while remaining focused on building resilient companies, infrastructure, and real estate. In 2024, we returned to record levels of investments, increased exit activity, drove significant value in our portfolios, and closed the largest private equity fund globally1. In recent years, we launched a number of new strategies and are now primed to hit the ground running as we embark on a new EUR 100 billion fundraising cycle.”

Christian Sinding,
CEO and Managing Partner

1) PEI 

Highlights for the period Jan-Dec 2024 (Jan-Dec 2023)

Strategic

  • EQT introduced two new strategies: EQT Healthcare Growth, a dedicated healthcare buyout strategy, and EQT Transition Infrastructure, investing in energy transition-related infrastructure
  • EQT enhanced its focus on private wealth through senior team hires, branding efforts, the addition of further distribution banks, and the launch of new products. In 2025, EQT expects to launch three additional evergreen vehicles, and thereby have five active vehicles available for private wealth, including three dedicated to the US, and two dedicated to Europe and Asia
  • EQT strengthened its central platform to enable continued scalable growth, as EQT expands its offering of vehicles for private wealth, enhances its capital raising efforts to attract new clients and increase cross-selling, launches new investment strategies, and expands its investment advisory teams and investment activities across North America and Asia
  • In recent years, EQT has launched ten strategies which are at an early stage of scalability and profitability, and is currently incurring costs associated with its recently launched and upcoming private wealth products, which had an impact on EQT’s margins
  • EQT continues to assess strategic opportunities, organically or through acquisitions to strengthen its platform

Adjusted Financials – reflecting EQT’s underlying performance1

  • Management fees increased primarily due to closed out commitments. Carried interest and investment income increased driven by value creation and higher realization activity, and the EBITDA margin was flat, reflecting the impact of long-term growth initiatives. EQT continues to expect to be at the upper end of its stated 55-65% EBITDA margin target range in years when substantial carried interest is recognized. As outlined at EQT’s capital markets day in March 2024, EQT furthermore expects to reach the 55-65% EBITDA margin target range also excluding carried interest and investment income during the next fundraising cycle
  • The US Multifamily fund initiative has been discontinued. The associated costs such as redundancies and the revaluations of certain investments made with the support of EQT’s balance sheet – totaling approximately EUR 80m net of tax – are treated as an item affecting comparability and are therefore excluded from EQT’s adjusted financials (see Note 1)
  • Total Revenue amounted to EUR 2,355m (EUR 2,131m), an increase of 11%. Management fees increased by 7%. Carried Interest and Investment Income amounted to EUR 251m (EUR 165m), an increase of 52%
  • EBITDA amounted to EUR 1,359m (EUR 1,226m), corresponding to an EBITDA margin of 58% (58%). Fee-related EBITDA amounted to EUR 1,108m (EUR 1,062m), corresponding to a Fee-related EBITDA margin of 53% (54%)
  • Net Income from continuing operations amounted to EUR 1,115m (EUR 1,019m)
  • Earnings Per Share for continuing operations before and after dilution amounted to EUR 0.942 (EUR 0.860) and EUR 0.942 (EUR 0.859), respectively

1) Adjusted Financials, which are alternative performance metrics for the EQT AB Group. For a full reconciliation, please refer to section “Alternative performance measures”

Reported Financials – IFRS1

  • Total Revenue amounted to EUR 2,653m (EUR 2,122m). Carried Interest and Investment Income amounted to EUR 549m (EUR 156m)
  • EBITDA amounted to EUR 1,324m (EUR 731m), corresponding to an EBITDA margin of 50% (34%)
  • Net Income from continuing operations amounted to EUR 776m (EUR 177m)
  • Earnings Per Share for continuing operations before and after dilution amounted to EUR 0.656 (EUR 0.149) and EUR 0.656 (EUR 0.149), respectively

1) As of Jan 1, 2024, EQT has, in accordance with IAS 8, changed accounting principles relating to carried interest, see Note 6. Adjusted Revenue is unchanged compared to prior periods

Fundraising

  • In 2024, the global fundraising market saw lower volumes of completed fundraisings compared to 2023, extended fundraising timelines, and marginal improvements in liquidity dynamics as realization volumes across global private markets remained subdued
  • Larger managers with an established track-record attracted an outsized share of client commitments as clients consolidated their relationships with fewer managers, a trend which EQT benefited from. EQT strategies across the world completed fundraises in 2024 that combine to around EUR 30bn in total commitments1, including EQT X, the largest private equity fundraise to be completed globally in 20242
  • Gross inflows amounted to EUR 11bn (EUR 24bn), primarily driven by closed out commitments from EQT X and Infrastructure VI
  • FAUM increased to EUR 136bn (EUR 130bn). Total AUM was EUR 269bn (EUR 232bn)
  • EQT Infrastructure VI had fee-generating commitments of EUR 18.1bn. The fund is expected to reach its target size upon its final close in the first quarter of 2025
  • EQT set the hard cap for investor commitments of USD 14.5bn for EQT Private Capital Asia’s BPEA Private Equity Fund IX. The target fund size for BPEA IX is USD 12.5bn, and EQT expects commitments to approach the target fund size upon first close during the first half of 2025. BPEA IX is expected to be activated in the first half of 2025
  • EQT Nexus’ NAV amounted to approximately EUR 1bn, with inflows accelerating during the fourth quarter. EQRT, EQT’s semi-liquid strategy focusing on direct investments in commercial real estate, announced its first investments and is expected to gradually increase marketing and fund raising efforts when the real estate fund raising market improves

1) EQT X (EUR 22bn), EQT Future (EUR 3.6bn), BPEA Mid-Market Growth (EUR l.5bn), and EQT Active Core Infrastructure (EUR 2.9bn)
2) PEI

Investment and exit activity1

  • EQT had one of its most active investment years ever, with total investments by the EQT funds amounting to EUR 22bn, an increase of 27% compared to 2023. In addition, EQT provided co-investment opportunities of EUR 12bn for its clients
  • EQT announced new investments across focus themes including digitalisation, energy transition, cyber security, education, waste management, transportation, and logistics
  • EQT Exeter more than doubled investment volumes to almost EUR 4bn, to mark its most active investment year since the combination with EQT in 2021
  • EQT accelerated exit activity and announced total gross fund exits of EUR 11bn, a 72% increase on 2023
  • Exit events included complete sales, Initial Public Offerings (IPOs), monetizations of listed holdings, and minority stake sales making 2024 a record year in terms of the number of exit events for the EQT funds
  • EQT was the most active private markets firm globally in 2024 as it relates to IPOs and follow-on volumes2

1) Signed transactions, if not otherwise mentioned
2) Dealogic and Goldman Sachs

Investment performance

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  • All Key funds continued to perform On or Above plan. At the end of the period, EQT increased its expectation for BPEA VIII to perform Above plan, based on the fund’s strong value creation outlook
  • Value creation in key funds amounted to 18% during 2024, underpinned by strong underlying Sales and EBITDA developments, supportive valuation references, realizations and exit processes. In particular, the fourth quarter of 2024 marked a meaningful improvement, being the strongest quarter in three years in terms of value creation
  • Key funds in EQT Infrastructure, and more recent vintages in Private Capital EU & North America and Private Capital Asia saw the strongest performance. EQT IX performed particularly well towards the end of the year on the back of strong operational performance and supportive pies, including for companies being readied for exits

Balance sheet, realizations of carried interest and liquidity

  • At 31 December 2024, interest bearing liabilities amounted to EUR 2,000m1. Cash and cash equivalents amounted to EUR 1,024m. EQT’s EUR 1.5bn sustainability-linked revolving credit facility was undrawn and the facility was extended in July 2024 with a tenor of 5 years with two 1-year extension options. Net Debt (ND) amounted to EUR 976m. ND/ Adjusted EBITDA was 0.7x and ND/Adjusted Fee-related EBITDA 0.9x
  • Reported Carried Interest amounted to EUR 587m (EUR 134m)2. Adjusted Carried Interest amounted to EUR 176m (EUR 142m). Realized (cash) carried interest amounted to EUR 59m (EUR 115m)
  • EQT repurchased a total of 4.2 million shares (EUR 118m) to offset the potential dilution from EQT’s equity incentive programs
  • In addition to EQT’s A- (Stable) rating from Fitch, EQT obtained an A- (Stable) rating from S&P, underscoring EQT’s operational strength and robust financial position

Note: The adjusted metrics are alternative performance metrics for the EQT AB Group. For a full reconciliation, please refer to section “Alternative performance measures’
1) Nominal amount
2) As of Jan 1, 2024, EQT has, in accordance with IAS 8, changed accounting principles relating to carried interest, see Note 6. Adjusted Revenue is unchanged compared to prior periods

People and future-proofing

  • The number of full-time equivalent employees and on-site consultants (FTE+) amounted to 1,941 (1,838), of which 1,886 (1,777) were FTEs. New hires in 2024 were made to strengthen the capital raising platform as well as the investment teams to enable scalable future growth
  • Masoud Homayoun was appointed Head of EQT Infrastructure
  • Henry Steinberg was named Global Head of EQT Exeter, after Ward Fitzgerald decided to step down
  • During 2024, the number of portfolio companies with validated science-based targets increased by 28, taking the total number of portfolio companies with validated targets to 52, or more than 60% of invested capital, at the end of the period. This is about three times higher than the median alternative asset manager1. In addition, 14 companies are in the process of setting targets

1) BCG, May 2024

Other

  • EQT Exeter, which will operate under the EQT Real Estate brand going forward, will continue to focus primarily on industrial (logistics) real estate. The US Multifamily fund initiative has been discontinued, and the associated costs such as redundancies and the revaluations of certain investments made with the support of EQTs balance sheet – totaling approximately EUR 80m net of tax – are reported in the period as an item affecting comparability (see Note 1). EQT Real Estate has also decided not to pursue further investments in the office and life sciences property sector for the time being
  • EQT established offices in Warsaw, Poland and Bengaluru, India. The Warsaw office is expected to become a significant tech development hub for EQT, and the Bengaluru office will host junior investment advisory professionals working with our global teams
  • During 2023 and 2024, lock-ups related to 20% of EQT’s share capital expired (including 12% in September 2024). Current and former employees subject to lock-up expiries during 2023 and 2024 continue to own a majority of those shares. Liquidity in the EQT share increased by approximately 33% following the 2024 lock-up expiry in September, compared to the 12 month period prior (source: Bloomberg), and EQT’s weight in certain indexes increased during the fourth quarter
  • In December, EQT was included in the Dow Jones Sustainability Index (DJSI) for the third consecutive year, and is the only private market firm globally to be part of DJSI World

Events after the reporting period

  • The Board proposes a dividend per share of SEK 4.30 (3.60), to be paid in two installments, SEK 2.15 (1.80) in June 2025 and SEK 2.15 (1.80) in December 2025
  • Investment levels in EQT Key funds as of 23 January 2025 were 45-50% in EQT X, 45-50% in EQT Infrastructure VI and 80-90% in BPEA VIII
  • Anna Wahlstrom, Leadership Strategy and Culture Enabler, stepped down from EQT’s Executive Committee. Anna’s role and scope remains unchanged
  • Alex Lowen was appointed Global Head of Human Resources

Presentation of EQT AB’s Year-end Report 2024

Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CET.

The presentation and a link to follow the webcast and conference call live can be found here and a recording will be available afterwards.

To participate by phone, please register here. You will then receive your personal dial-in details, to be able to ask questions during the Q&A.

Information on EQT AB’s financial reporting

The EQT AB Group has a long-term business model founded on a promise to its fund investors to invest capital, drive value creation and create consistent attractive returns over a 5 to 10-year horizon. The Group’s financial model is primarily affected by the size of its fee-generating assets under management, the performance of the EQT funds and its ability to recruit and retain top talent.

The Group operates in a market driven by long-term trends and thus believes quarterly financial statements are less relevant for investors. However, in order to provide the market with relevant and suitable information about the Group’s development, EQT publishes quarterly announcements with key operating numbers that are relevant for the business performance (taking Nasdaq’s guidance note for preparing interim management statements into consideration). In addition, a half-year report and a year-end report including financial statements and further information relevant for investors is published. Finally, EQT also publishes an annual report including sustainability reporting.

Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Shareholder Relations, [email protected] 
Rickard Buch, Head of Corporate Communications, +46 72 989 09 11
EQT Press Office, [email protected] , +46 8 506 55 334

This is information that EQT AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:00 CET on 23 January 2025.

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CGTN: China’s booming ice and snow industry fuels its economic growth

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BEIJING, Feb. 7, 2025 /PRNewswire/ — Harbin, capital of northeast China’s Heilongjiang Province, exemplifies the country’s thriving ice and snow economy.

During the eight-day 2025 Spring Festival holiday from January 28 to February 4, the city has seen booming snow tourism. As an ice-themed park known for its dazzling ice sculptures, Harbin Ice-Snow World attracted over 610,000 visits. In particular, more than 100,000 visits were made on February 1, setting a new record for single-day attendance.

The increasing popularity of the park is partly attributed to the city’s upcoming role as the host of the 9th Asian Winter Games, which will be held from February 7 to 14, marking China’s second major winter sports event following the Beijing 2022 Winter Olympics.

Chinese President Xi Jinping will attend the opening ceremony of the 9th Asian Winter Games and host a welcome banquet for foreign leaders in attendance.

Ice and snow economy enters ‘fast lane’

Xi has paid close attention to the development of China’s ice and snow sports and industries, urging efforts to consider ice and snow economy as a new growth point to promote the development of the whole industrial chain involving winter sports and culture, snow-and-ice equipment and tourism.

In recent years, as winter sports and tourism surged in popularity across China, the ice and snow economy has witnessed significant growth.

According to the General Administration of Sport of China, the number of people participating in various ice and snow sports such as skating, skiing, curling and ice hockey nationwide reached 57.35 million in the 2023-2024 snow season. Over 385 million winter leisure visits nationwide were recorded, marking a 38 percent increase from the previous year.

During the last snow season, Harbin alone welcomed over 87 million visitors, marking a 300 percent year-on-year increase and generating 124.8 billion yuan (about $17.4 billion) in tourism revenue – a staggering 500 percent growth.

Meanwhile, the ice and snow consumption is becoming an important growth point to expand domestic demand, transforming the “cold” resources into “hot” engine for economic development.

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According to online shopping and tourism platforms, orders for ice and snow equipment surged, while searches and bookings for ice and snow tours saw rapid growth during the “Double 11” shopping festival last year.

On China’s leading e-commerce platform, Tmall, sales of categories such as down jackets, thermal wear and skiing equipment surged by over 200 percent year on year during the “Double 11” shopping festival.

Broad prospects

To harness its abundant ice and snow resources for economic development, China is intensifying efforts to expand its winter economy, encompassing sports, culture, equipment, and tourism.

According to the guidelines issued by the General Office of the State Council, the country aims to promote its ice and snow economy as a new growth point, with the goal of reaching an economic scale of 1.2 trillion yuan (about $169 billion) by 2027, and 1.5 trillion yuan by 2030.

To achieve these goals, various cities and regions are integrating winter sports and tourism into their development plans.

The Heilongjiang Province is promoting the establishment of a China-Shanghai Cooperation Organization winter sports demonstration zone, expediting the development of ice-and-snow equipment and digital industry parks.

In Beijing, the city has launched an action plan, proposing 24 specific measures in areas such as expanding the ice and snow sports and consumption, and advancing the construction of ice and snow venue facilities.

The vigorous growth of the ice and snow economy has also drawn global attention. A slew of measures, including optimizing the visa-free policy and opening new international flight routes, have attracted a number of foreign tourists to start their “China Travel” and enjoy the winter season in the country.

China’s thriving ice and snow economy has also injected new momentum into the global tourism market, Chinese Foreign Ministry spokesperson Guo Jiakun said on Thursday, extending a warm invitation to friends from around the world to participate in ice and snow events, fostering friendship and cooperation.

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SM Investments Recognized for Landmark Capital Market Deal

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PASAY CITY, Philippines, Feb. 7, 2025 /PRNewswire/ — SM Investments Corporation (SM Investments), the parent company of the SM Group, has been awarded the “Philippine Capital Market Deal of the Year” by International Financing Review Asia (IFR Asia) for its successful issuance of a USD500 million five-year bond in 2024. This recognition underscores SM Investments’ leadership in the capital markets and the strong confidence of global investors in the company’s financial strength.

IFR Asia cited SM Investments’ return to the US dollar bond market after a decade-long absence as a significant development for the Philippine corporate sector. The transaction, which was the largest five-year deal by a Philippine corporate in 2024, reopened the market amid volatile conditions and achieved competitive pricing at 35 basis points.

“This landmark transaction represents a major milestone for both SM Investments and the Philippine capital markets. The strong demand from investors reflects confidence in Philippine corporate issuers and underscores SM’s reputation as a stable and well-managed investment option,” said Erwin G. Pato, Executive Vice President for Treasury, Finance, and Planning at SM Investments Corporation.

IFR Asia noted that SM Investments’ bond issuance attracted significant investor interest, given the relative scarcity of corporate issuances from the Philippines in recent years. The transaction also marked SM Investments’ first bond issuance since its USD350 million 10-year note in June 2014.

The deal was arranged by leading global financial institutions, with HSBC, JP Morgan, Standard Chartered, and UBS acting as joint lead managers and joint bookrunners. BDO Capital and Chinabank Capital also participated as joint lead managers.

International Financing Review Asia is a respected source of news and analysis on capital markets and investment banking, reinforcing the credibility of this recognition.

SM Investments’ achievement highlights its commitment to financial excellence and its role in strengthening investor confidence in the Philippine market.

About SM Investments Corporation

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.

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BRI UMKM EXPO(RT) 2025 Officially Concludes, Attracting Over 63,000 Visitors and Securing USD 90.6 Million in Export Contracts

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JAKARTA, Indonesia, Feb. 7, 2025 /PRNewswire/ — PT Bank Rakyat Indonesia (Persero) Tbk. (IDX: BBRI) successfully concluded BRI UMKM EXPO(RT) 2025, reinforcing its commitment to empowering MSMEs and expanding their global market reach. Held from January 30 to February 2, 2025, at ICE BSD City, the event attracted over 63,000 visitors, generated IDR 38.9 billion in transactions, and secured USD 90.6 million in export contracts through business matching. The closing ceremony was led by BRI President Director Sunarso.

A Platform for Global MSME Expansion

With the theme “Broadening MSME’s Global Outreach”, the event showcased 1,000 top Indonesian MSMEs ready for the international market. The closing ceremony was attended by BRI Vice President Director Catur Budi Harto. BRI President Director Sunarso highlighted the expo’s success in raising awareness of local MSME products, exceeding its initial target of 50,000 visitors.

By February 1, 2025, transactions hit IDR 38.9 billion, exceeding expectations. Sunarso reaffirmed BRI’s commitment to MSMEs, with business matching continuing through 2025 in partnership with the Ministry of Trade, holding twice-monthly sessions to boost exports.

This year’s BRI UMKM EXPO(RT) 2025 saw the participation of 506 registered buyers from 34 countries, significantly exceeding the initial target of 94 buyers from 33 countries.

So far, 166 MSMEs have engaged in 270 business meetings, one of the standout success stories is PT Siger Jaya Abadi, which secured a USD 13.05 million export deal with Bluestar Food Corporation, USA.

BRI UMKM Awards: Honoring Top MSMEs

BRI recognized outstanding businesses in three categories:

1. Top Deals on Business Matching

For MSMEs achieving the highest potential transactions in business matching sessions:

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  • Bintang Kita Kemuliaan (Food & Beverage)
  • Albasi Karang Layung (Home Décor & Craft)
  • Gula Aren Temon (Food & Beverage)

2. Newcomers on Business Matching

For first-time exporters who successfully secured international buyers:

  • Rumah Atsiri Indonesia (Healthcare & Wellness)
  • Minyak Sacha Inchi (Food & Beverage)
  • Organic Center (Food & Beverage)

3. Best Expo

For MSMEs demonstrating outstanding export readiness and digital adoption:

  • Sila Agri Inovasi (Food & Beverage)
  • Pelita Lumpang Mas (Food & Beverage)
  • Restu Mande (Food & Beverage)

These awards highlight BRI’s commitment to empowering MSMEs globally while advancing financial literacy and inclusion.

For more details on BRI UMKM EXPO(RT) 2025, visit briumkmexport.com.

For more information about BANK BRI, visit www.bri.co.id.

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