EQT shares fall as fund inflows miss estimates despite €2 bln in Q3 exits

Investing.com -- Shares of Swedish private equity group EQT AB (ST:EQTAB) fell on Thursday after the firm reported third-quarter fund inflows and fee-generating assets under management below market expectations, even as realizations and investments remained strong.

EQT said gross fund exits totaled €2 billion in the third quarter and €19 billion over the past 12 months, maintaining one of the highest realization levels in private markets. 

Chief Executive Per Franzen said the company continued to stay disciplined in its investment pacing and focused on accelerating value creation in portfolio companies.

Jefferies said in a note that exits over the past year equaled about 30% of the value of EQT’s equity funds 12 months earlier, nearly three times the industry average, and confirmed that EQT remained the most active private-markets participant in equity capital markets so far this year. 

The bank said EQT is on track to deliver about 30 exit events in 2025, with 25 completed to date.

EQT reported fee-generating assets under management (FAUM) of €138.7 billion as of Sept. 30, compared with Visible Alpha consensus of €142.2 billion. 

Gross inflows reached €2.1 billion, below consensus expectations of €4.6 billion and close to Jefferies’ forecast of €2.5 billion. 

Total assets under management rose to €267 billion, up from €246 billion a year earlier.

According to Jefferies, most inflows came from BPEA Private Equity Fund IX, which has raised $12 billion with pending commitments exceeding $12.5 billion. 

The fund is expected to reach its $14.5 billion hard cap at final close in early 2026. EQT XI, launched in June with a €23 billion target, is progressing toward activation in the first half of 2026.

During the quarter, EQT invested €5 billion, nearly double the previous quarter, across Europe, the United States and Asia.

In Japan, the firm announced the take-private of Fujitec, its largest buyout in the country since entering the market nearly 20 years ago. 

In Europe, EQT acquired Adevinta Spain, while in the United States it purchased HR and compliance software provider NeoGov.

EQT said all key funds were on or above plan, with average portfolio valuations rising 3% in the quarter. 

Jefferies noted that Infrastructure Fund IV increased its multiple of invested capital to 1.9 times from 1.8, Infrastructure Fund V to 1.6 times from 1.5, and EQT VII declined to 2.4 times from 2.6. Jefferies said EQT VII, EQT VIII, BPEA VII, BPEA VIII and Infrastructure III remained above plan, while other flagship funds were on plan.

EQT said it expects about €500 million in carried interest from EQT VIII in the short term. 

The company completed a €171 million share buyback during the quarter, bringing 12-month repurchases to €298 million, alongside €416 million in dividends.

EQT reported a headcount of 1,941 and said staffing is expected to normalize by year-end. 

Jefferies said an efficiency plan in the second half will keep full-time employees flat year over year and reduce in-house consultant roles by about 75%, or roughly 80 positions.