eQ Asset Management has a long and successful history from European private equity markets and has also been an active participant in the secondary markets. In May 2017, eQ established its first secondary fund with capital commitments totalling € 137.5 million. Investors in the fund include eQ PE VIII North L.P., eQ mandate clients and major Finnish institutions, including the State Pension Fund (VER). The portfolio comprises 17 private equity funds, all of which were acquired in a single portfolio transaction.

The acquired portfolio comprises 17 fully invested Western European midmarket buyout funds. eQ has an existing investment relationship with six of them. In aggregate, the funds comprise more than 100 portfolio companies, which have been acquired during 2006-2014. Value creation is well underway and the companies are increasingly positioned towards short to mid-term exits. The transaction was completed in two stages – the first closing was completed in the beginning of July when ten fund interests were transferred and the second closing took place at the end of August when another seven fund interests were transferred.

Staffan Jåfs, Head of Private Equity, comments:

“eQ has over the last five years completed over ten secondary market transactions on behalf of our own funds or client portfolios. This is the biggest transaction so far and comprises several funds that are very familiar to us, which is something we consider a key competitive advantage. Our team conducted a thorough portfolio analysis including detailed company-specific exit expectations.

The required capital was raised in a short time period while we simultaneously negotiated the transaction. We were especially attracted by the reasonable valuation and leverage levels together with the portfolio maturity enabling both efficient deployment and relatively short payback period.”

 Maarit Säynevirta, Head of alternative investments, the State Pension Fund, comments:

“This eQ-led transaction provided the State Pension Fund with an excellent opportunity to deploy capital in private equity quickly and efficiently.”

eQ Private Equity funds now comprise over 150 investors and the private equity assets under management totalled € 5 billion as of 30 June 2017. eQ establishes Europe and US focused lower midmarket buyout funds on alternate years. eQ has also established its first Private Credit Fund during the first half of 2017. In the beginning of 2018, fund raising for the next Northern European focused fund, eQ PE X North, will be launched.

 Helsinki 1 September 2017

 eQ Asset Management Ltd

 For additional information:

 Staffan Jåfs, Head of Private Equity, eQ Asset Management Ltd

+358 (9) 6817 8736, staffan.jafs(at)eQ.fi