By Emma Victoria Farr
FRANKFURT, May 15 (Reuters) – Sweden-based EQT said Monday it is launching a new strategy for retail wealth clients to broaden its investor base and give individuals the opportunity to invest.
EQT Nexus will be the private equity firm’s first offering for individual investors to make separate investments. EQT has not disclosed a target for assets under management for EQT Nexus.
KKR, Apollo Global Management and Partners Group are among rival private equity firms that have considered looking to family offices and private equity to close the fundraising gap as these financial investors face a bleak environment to raise money.
“Private markets are changing. Deal making is becoming more innovative, there are higher expectations from all stakeholders and sources of capital are evolving,” said Suzanne Donohoe, chief commercial officer at EQT.
The Nexus portfolio will invest in mature buyouts to early stage investments, with an emphasis on EQT’s private equity and infrastructure funds. In addition to the funds of the Swedish sponsor, it will also co-invest in companies.
Donohoe said a “sizable team” has been built with about 50 people working on private wealth.
EQT predicts that individual investor allocations to private markets are expected to grow at a rate of 12% per annum over the next ten years.
Partners Group established a private equity arm last November with $37 billion in assets under management, bringing its existing operations into a single unit.
The Nexus advisory team will be led by William Vettorato, who recently joined EQT from Partners Group.
EQT has EUR 119 billion ($131.00 billion) in fee-generating assets under management with EUR 216 billion ($237.77 billion) in total assets under management across two business segments: Private Equity and Real Assets. ($1 = 0.9084 euros) (reporting by Emma-Victoria Farr; editing by Mike Harrison)