The Private Equity business makes venture capital investments in young growth-oriented companies and loan-financed investments (buyouts) in medium to large size companies that are more mature and have development potential. Venture capital activities are conducted by Investor Growth Capital (IGC), a wholly owned Investor subsidiary. Buyout activities are conducted indirectly through EQT’s funds, which are operated by their own independent organization.

Private equity investments involve higher risk but also have higher return potential. By investing in young growth companies, we can also discover important new technologies and business trends early. When developing the holdings, Investor Growth Capital and EQT utilize the industrial expertise of Investor’s network and our experience from building companies during different stages of development. Both organizations assume an active ownership role. This involvement may range from supporting holdings in the development of their business, strategy and vision, to providing access to representatives in Investor’s network and legal and financial expertise.

To balance the risk profile in the business area, Investor and EQT have a large number of holdings in their portfolios. The higher risk in the business area is reflected in a higher return objective.

Returns for the business area are evaluated and generated mainly when exits are implemented, since value creation is realized either through initial public offerings or by selling a holding to an industrial company or financial player. The business area’s return objective is to achieve an average annualized return (IRR) of at least 20 percent on realized investments, before administrative expenses.

Information updated 2008-03-26 10:21:44