EQT’s new private capital leader sees more private transactions

(Bloomberg) – According to the new leader in its private capital sector, EQT AB is seeking trading opportunities in public markets with increasingly volatile markets.

Bert Jansens said that when other buyout companies sell less assets, the private privateness of assets that companies are selling may be a source of opportunity for EQT.

Janssens said in an interview that some businesses currently have price errors, such as those listed in 2021 or 2022 with very low liquidity. He said these situations could lead to a majority of stakeholders willing to trade because they are “stuck”. According to data compiled by Bloomberg, transaction size weighted data show that the IPO that completed at least $500 million during this period fell by an average of 18% compared to its offer price.

Janssens added that great businesses with wrong ownership offer another potential area for transactions.

“In the age of free money, everyone piles up debts into companies and there are a lot of capital structures that are very messy,” he said. “We’re happy to clean up the capital structure of the company and operate better.”

EQT has been actively engaged in private transactions over the past year. In October, the acquisition company completed London-listed video game developer keyword studio PLC Private on a £2.1 billion contract after purchasing British veterinary drugmaker DeChra Pharmaceuticals plc. EQT also made a offer for Sweden’s commercial OEM International AB in 2024.

Janssens and Liu have worked with over 15 years, including Warburg Pincus. They took over the helm of EQT’s private capital operating EQT in Europe and North America, which manages 113 billion euros ($122 billion), after which Franzen joined the top position in the acquisition company.

Bankers initially predicted that the new U.S. government would create better conditions for purchases and sales, supercharged mergers and acquisitions that just got back on their feet after a break. But tariffs on countries like Canada and Mexico, as well as tensions with Ukraine on how to move towards peace with Russia, frightened the market and kept traders off the market.

“The system is always shocked by macro events – whether it’s interest rate changes, tariffs or pandemics, but companies that provide basic services to their customers tend to be profitable over time,” Liu said in an interview. “Our goal is to create returns for investors in any market.”

New York-based Liu also saw EQT expand its presence in the United States. EQT manages approximately 269 billion euros of assets worldwide.

“It is unusual for the lack of North American operations of large private equity organizations around the world,” he said. “We have a great track record in the United States and see a lot of growth opportunities here.”

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