Through substantial ownership and Board representation, we work in the same way with all holdings. Our business teams develop value-creation plans, benchmark our investments and provide them with support to maintain or achieve best-in-class positions in their respective industries.
Key going forward
To stay competitive in today’s fast-changing environment, our companies must continue to future-proof themselves by investing in innovation, digitalization and sustainability, focusing on secular trends to drive long-term profitable growth. Developing and launching energy efficient, environmentally friendly solutions, with focus on total cost of ownership for the customers, is prioritized.
It is also important that our companies continue to reduce their operational climate footprint. At the same time, they must never lose focus on efficiency in order to perform successfully, regardless of market environment.
Regarding capital allocation, we continue to prioritize investments in selected portfolio companies when we find it attractive from a valuation perspective and when we are not restricted.
Key going forward
Our top priority is to support profitable growth in our existing companies. With a challenging macro environment, many companies are focused on ensuring efficiency in operations, while growing.
This creates room to reinvest for the future, both in organic and non-organic initiatives. Increased digitalization, automation and sustainability, are all examples of future-proofing efforts that the companies are engaged in. In particular, we believe there are
opportunities for both additional growth and efficiency improvement from leveraging new technology, including software.
While focusing on our existing companies, we are also open to add new subsidiaries, provided we find attractive opportunities in prioritized industry segments.
Key going forward
Key for EQT is to continue to generate attractive returns for fund investors and to continue to develop its successful business model, built on industrial value creation.
Our investments in EQT’s funds have been successful over time. Net cash flow to Investor is lumpy by nature and depends on whether the funds are in an investment or exit phase. We expect continued strong net cash flow over time, and we will continue to selectively invest in future funds.
