Financial Investments comprise companies and holdings with the potential to generate significant value and cash flow. Cash flow is generated by optimizing leverage over time and returning surplus liquidity to owners through dividends and refinancing. We work with the unlisted partner-owned companies in the same way as we work with Core Investments. We tend to have a longer holding horizon than our partners. Over time, they will either be divested or become Core Investments, i.e. listed or subsidiaries.

Our subsidiary Investor Growth Capital takes minority positions in growth companies in the U.S. and Asia. These companies are often generating revenue or soon will be. Typically, these holdings have no or very low financial leverage. Returns are generated through divestments. Typical exits include initial public offering or trade sales to industrial or financial players, normally after a three to seven year holding period.

The independent EQT-funds, in which Investor is largest sponsor and investor, make leveraged investments in medium to large-sized companies in Northern and Eastern Europe, Asia and the U.S. EQT has raised 13 funds active in buy-outs, equity-related growth financing, credit and infrastructure.

Investment strategy

• Partner owned investments: Significant minority ownership for strategic influence.
• Investor Growth Capital (wholly-owned subsidiary): Leading minority ownership in expansion stage companies.
• EQT: Sponsor and largest investor in EQT’s independent funds.

Goal

• To generate a return significantly exceeding the market cost of capital over a business cycle, and appropriately reflecting the holdings’ liquidity as well as their financial and operating risk profiles. Currently, the return objective is to exceed 15 percent per year.

Strategy

• Develop existing holdings with a long-term ownership horizon.
• Creating value in the business area by active ownership of the companies. 

Information updated 2011-05-05 13:00:38