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Hej Asia! EQT targets private wealth channel with Nordic twist on PE

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EQT is bringing a Nordic twist to private equity in Asia. The EUR246 billion in AUM alternatives firm is taking a long-term view and aiming to be the most reputable shareholder of portfolio companies rather than just the most profitable, the firm’s chief commercial officer told Asian Private Banker.

Suzanne Donohoe, EQT

EQT has invested significantly in its private wealth business in Asia and is looking to grow this channel further, as investors in the region, in particular family offices, increase allocations to alternatives.

“EQT is Swedish by heritage. This Nordic heritage means that, in our DNA, we care a lot about portfolio companies and their long-term sustainability,” Suzanne Donohoe, EQT’s chief commercial officer, told APB during her recent visit to Hong Kong.

“One of our mottos is actually to be the most reputable owner of the companies that we own, instead of being the most profitable or the largest. This means we take a long-term approach when owning companies and invest in companies that will deliver lasting value to our investors, through a combination of performance and informal, approachable engagement,” she said.

Asia heritage

EQT’s owner, the Wallenberg family, is a prominent investor in Sweden, backing other major businesses including Ericsson and Saab. The family also has a legacy of investing in Asia.

“The Wallenberg family has a holding company called Investor AB, which entered Hong Kong in 2006. This heritage instils in us a long-term ownership mindset and a strong focus on governance, which guides our approach to owning and managing companies across all our activities and in every region where we invest,” Donohoe said.

“The network of Wallenberg companies is pretty vast, and the family has been doing business in places like Japan, Hong Kong and China for decades – for generations. So EQT has the strength of that network as it goes deeper in specific markets.

“We want to leave every investment that we have in better shape than when we found it. So, there’s a long-term orientation about how we approach adding value in the company,” she said.

Source: EQT 1H2024 earnings

Growth strategy

For its Asia strategy, EQT combined with Baring Private Equity Asia (BPEA) two years ago, and the pair have become a significant pan-Asia buyout manager. The firm focuses on three pillars for growth in Asia: a robust private equity capacity, a presence in multiple Asia markets and strong sourcing power.

“As an organisation, we’re pretty open to new ideas [for growing the business]. And if we found a great opportunity to grow the private wealth business, we would definitely consider it. For now, as we have been making very significant investments in building our private wealth sales and client servicing capability, we are sticking to organic growth instead of new acquisitions,” Donohoe explained.

“We currently have a team of 10 sales and distribution seniors across Japan, Australia, Southeast Asia and Hong Kong,” she added.

Private equity focus

“There are three main sectors that we focus on: technology, services and healthcare. India has been a sizable portion of our allocation. Japan, Australia and Southeast Asia are on our focus list. China is an interesting market that we have invested into, but considering the backdrop today, we are investing less compared to a few years ago,” Sueann Yeo, head of Asia Pacific Wealth, told APB.

Sueann Yeo, EQT

Most recently, EQT’s BPEA Mid-Market Growth Partnership agreed to acquire a 100% stake in Indostar Home Finance for INR 17.5 billion (US$210 million), marking its latest investment in India.

“In terms of wealth solutions, we’re sourcing the same investments that we source for institutional clients. We have secured leading private banks in the region for distribution and are looking at more players for future partnerships,” Yeo said.

Ex-JPM, KKR

Based in Singapore, Yeo joined in April 2022 to lead the private wealth management and family office coverage across Asia Pacific. She reports to Peter Beske Nielsen, Global Head of Private Wealth.

Yeo joined from J.P. Morgan Private Bank, where she spent about nine years in various alternative investment roles. She was most recently head of alternative investments for Southeast Asia.

Donohoe joined EQT in 2023. Before that, she was a partner at rival KKR from 2009 to 2022. Her experience prior to KKR includes  Goldman Sachs, where she worked from 1992 to 2009. During this period, she worked in both the investment banking and investment management divisions in New York and London.

Deep Dive: How global PE giants unlock private wealth opportunities in Asia

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