EQT targets record EUR 23 billion for new fund

Swedish investment firm EQT AB has set a target of 23 billion euros for its latest flagship private equity fund, EQT XI.

The target for the new fund is larger than its predecessor, EQT X, which had a target of 20 billion euros.

The final size of the fund will depend on the outcome of the fundraising process and could be higher or lower than the target, the company said in a statement.

A hard cap, or maximum size, for the fund will be set at a later date.

EQT said the investment strategy for EQT XI is expected to be materially in line with the predecessor fund.

The company noted that its capital raisings typically follow a cycle where a successor fund can begin investing when the prior fund is approximately 80% to 90% invested.

Management fees for the new fund will begin upon its first investment or when the commitment period for EQT X concludes, at which point fees for EQT X will be based on net invested capital, according to the company.