Slide 1: Q1 Announcement 2023
Q1 Announcement 2023 Webcast presentation 20 April 2023
Slide 2: Thematic opportunities in volatile markets
Thematic opportunities in volatile markets The webcast will begin shortly
Slide 3: Thematic opportunities in volatile markets
Thematic opportunities in volatile markets
Slide 4: Q1 2023 in brief
Q1 2023 in brief Thematic opportunities in volatile markets Strategic FAUM Investment activity2 (EURbn) (EURbn) Q1 Private Wealth – Semi-liquid 119 21 Of which EUR structures 191 3 0.2bn from BPEA since closing 77 14 5 Ongoing fundraises 100 18 9 Performance Q1 2022 Q1 2023 Q2 ’21 - Q1 ’22 Q2 ’22 -
Slide 5: Private markets are set for long-term growth …
Private markets are set for long-term growth … Actively managed alternative AUM1 (USDtn) ~30 ~15 ~7 Today 2030 2040 Private Markets allocations are critical for our clients to achieve a well-diversified portfolio and meet long-term return targets 5 1) Bain analysis. Actively managed alternative AUM
Slide 6: … enabled by active ownership and performance
… enabled by active ownership and performance Performance Clients Individual Governance Clients seek Clients Companies Continuously investors model and to remain concentrate stay refined value to increase capital to invested in relationships private for creation allocations to catalyse high quality
Slide 7: We have four main avenues for future growth
We have four main avenues for future growth 1 2 3 4 Grow Launch Scale Launch recent initiatives Private Wealth flagship funds new initiatives and strategies products 7
Slide 8: Our continued growth builds on our differentiators
Our continued growth builds on our differentiators Focused on Repeatable Future- Local-with- Thematic Industrial active value creation proofing: locals with a investment advisors & ownership playbook per Sustainability global approach governance strategies sector & Motherbrain platform To future-pro
Slide 9: A diversified platform to seize opportunities on a global scale
A diversified platform to seize opportunities on a global scale Diversified across strategies … … clients … … regions EUR 119bn Commitments by client geography Invested capital per region 12% Private Equity 18% 38% Americas 32% 13% APAC 37% Europe EUR Europe North America 216bn Nordics 19% APAC 15%
Slide 10: Priorities for 2023
Priorities for 2023 Performance Drive value creation across strategies Execution Pursue new thematic investments and selective exits Build global cooperation and culture Recent combinations Share best practices Build on revenue synergies Execute on flagship fundraises Ongoing fundraises Scale recent
Slide 11: New structures to enable access to private markets for individual investors
New structures to enable access to private markets for individual investors Institutional allocations range from 0-30%+ ~2% ~8% Individual investors’ average Institutional investors’ average allocation to Private Markets1 allocation to Private Markets1 Semi-liquid funds address many of the historic
Slide 12: Fundraising continues in a more challenging environment
Fundraising continues in a more challenging environment Ongoing fundraises Recent fundraising progress FAUM EUR 70bn Private Capital EQT Future EQT X EUR 5bn of closed Private commitments in Q1 Capital EUR 5.9bn closed out in EQT Infrastructure VI EUR 17.2bn closed out in EQT Active Core EQT I
Slide 13: Thematic investment activity picked up in Q1, whilst keeping a patient approach to exits
Thematic investment activity picked up in Q1, whilst keeping a patient approach to exits Investments1 Exits1 (EURbn) (EURbn) 21 Of which EUR 29 0.2bn from BPEA 2 3 since closing 14 Of which EUR 1.0bn from BPEA 5 since closing 18 27 10 Q1 1 Q1 9 9 Q2 2021 - Q1 2022 Q2 2022 - Q1 2023 Q2 2021 - Q1 2022
Slide 14: Q1 FAUM increase mainly driven by EQT Infrastructure VI
Q1 FAUM increase mainly driven by EQT Infrastructure VI Incl. BPEA FAUM EUR 22bn1 (9) 119 (6) (2) FAUM 59 development 77 Q1 2023 LTM Mar-22 Gross inflows Step-downs Exits FX and other Mar-23 119 113 8 - (1) 0 FAUM development Q1 2023 Dec-22 Gross inflows Step-downs Exits FX and other Mar-23 14 1) Cl
Slide 15: Key fund valuations were flat to slightly up
Key fund valuations were flat to slightly up EQT VII EQT VIII EQT IX EQT X – Above plan – Above plan – On plan – On plan 2.8x 2.7x 2.7x 2.6x 2.7x 2.6x Private 2.4x 2.3x 2.3x 2.3x Capital 1.4x 1.4x 1.4x 1.3x 1.4x EU & NA 1.0x 1.0x 1.0x Private Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-22 Jun-22 Sep-22 D
Slide 16: Selective hiring in core growth areas
Selective hiring in core growth areas FTE+ (# of) 1,790 1,792 FTE+ split 1,471 1,538 ~310 FTE+ Private Capital from business 1,319 combinations Real Assets in 2022 1,160 Central Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Continued selective hiring primarily in strategic growth areas (e.g.,
Slide 17: Our business model is long-term with recurring revenue streams
Our business model is long-term with recurring revenue streams With a young portfolio and well-financed portfolio companies, we will time exits to maximize returns for clients EUR 8.5bn carry 97% of the portfolio remaining to be >50% of FAUM raised The average portfolio company debt recognized from
Slide 18: To summarize
To summarize We are diversified across strategies, geographies, clients and counterparties EQT funds are invested in market leading and resilient companies and assets with thematic tailwinds We continue to execute on semi-liquid structures to tap into sizeable potential in the Private Wealth segment
Slide 19: Questions?
4 Questions?
Slide 20: Appendix
Appendix
Slide 21: EQT is invested in resilient, market leading companies
EQT is invested in resilient, market leading companies Sector split, % invested Sector Example sub-sectors EQT IX investments • MedTech 11% Healthcare • Specialized Service Providers 20% 42% TMT • Specialty Pharma Private Capital Healthcare Services • Life Science Tools/Dx 27% Other • Pharma Service
Slide 22: EQT Exeter has a thematic portfolio with significant dry powder
EQT Exeter has a thematic portfolio with significant dry powder 26 4 6% No tenant represents Diversified lending Of which 11% 2% more than base with over 22 EUR 12bn is dry powder ~2% 80% of total global square of debt hedged1 81% units Logistics Committed Capital, not currently fee paying Multifami
Slide 23: EQT lock-up structure
EQT lock-up structure Number of shares released from lock-up (million)1 EQT’s shareholder structure 150 EQT employees and Partners 56% Free float 26% 100 Investor AB 15% Wallenberg Invest AB 50 2% EQT Foundation 1% 0 2022 2023 2024 2025 2026 2027 2028 23 1) Includes shares that are subject to lock-u