EQT, Europe's largest buyout fund, has announced the acquisition of Coller Capital, a global giant in the private equity secondary market (S transactions), for a total consideration of up to $3.7 billion. This is not only the most eye-catching deal in the global private equity market in early 2026 but is also poised to reshape the competitive landscape of the entire industry. Upon completion of the transaction, Coller Capital will form a new business platform named "Coller EQT" within EQT, becoming the third major business segment alongside EQT's existing private capital and real assets divisions. This structural arrangement preserves Coller Capital's independence and brand value while simultaneously opening up a fast-growing, high-margin market for EQT. The private equity secondary market is undergoing unprecedented growth. Data provided by EQT shows the market grew by 41% in 2025, reaching a staggering transaction volume of $226 billion. In stark contrast to this growth, most large private equity firms have a notably insufficient presence in this arena. Until now, the secondary market has been primarily dominated by specialized firms, while comprehensive asset management platforms have lagged significantly. This is not EQT's first attempt to enter the secondary market. As early as October 2025, public reports indicated that EQT was exploring acquisitions of several secondary market specialists, including Coller Capital. The market did not anticipate at the time that EQT would conclude this industry-watched deal so swiftly. As a pioneer in the secondary market, Coller Capital has developed into a global leader in the field since its founding in 1990. It manages total assets of $50 billion and recently completed the final close of its historically largest fund, Coller International Partners IX, which reached a size of $14.2 billion. For EQT, acquiring Coller Capital is not merely a simple business expansion but a crucial step in completing the puzzle of its asset management platform. EQT's CEO, Per Franzén, explicitly stated in a declaration that this acquisition is a "natural and important step in EQT's strategic development." This "natural" aspect is reflected in the S transaction market having become an increasingly vital platform for clients to manage liquidity and construct portfolios. The "importance" lies in this enabling EQT to offer comprehensive solutions spanning both primary and secondary markets, meeting the increasingly complex needs of institutional clients. The EQT-Coller Capital deal is not an isolated case but a typical example within the broader trend of consolidation in the private equity industry. In recent years, it has become an industry consensus for large multi-strategy platforms to "complete" their secondary market puzzle through mergers and acquisitions. While the secondary market is growing rapidly, market concentration is also increasing. According to the "2026 Global Secondary Market Report" jointly released by Preqin and Campbell Lutyens, the top 20 firms already command 62% of the market share. This data reveals a harsh reality: expand rapidly through M&A or face the risk of eroding market share. Coller Capital's choice to be acquired by EQT is precisely based on a profound insight into this industry trend. From a transaction structure perspective, EQT's acquisition also embodies typical characteristics of current private equity deals. The base consideration of $3.2 billion is paid entirely through the issuance of new shares, while the maximum contingent consideration of $500 million is tied to Coller Capital's future performance. This "cash + stock + performance-linked" payment method helps control upfront cash outlays while incentivizing the acquired management team to continue creating value post-transaction. Notably, 64% of the contingent consideration will be received by Coller's core management, who have committed to "reinvesting the full net amount after tax into EQT shares," locked in for three years. This arrangement ensures management stability, reducing the common risk of talent drain following an acquisition. Coller Capital founder Jeremy Coller will lead his team into EQT and continue to head "Coller EQT." From a regulatory perspective, the deal still faces some hurdles. It requires regulatory approvals and consent from Coller Capital's fund investors. Given the deal's size and the multiple jurisdictions involved, regulatory scrutiny is likely to be stringent. However, it is noteworthy that the transaction structure maintains Coller Capital's independence in its investment process, which may alleviate some regulatory concerns. According to the announcement, Coller EQT's deal sourcing and investment processes will remain independent. Coller Capital manages approximately $50 billion in assets, employs about 200 people, and operates three major offices in London, New York, and Hong Kong. This global network provides EQT with a ready-made international platform, particularly strengthening its influence in the Asian market. Post-transaction, EQT plans to double the scale of Coller's business in less than four years. To achieve this goal, EQT has already scheduled the launch of the first "Coller EQT" branded continuation fund in the first half of 2027, targeting a size of $6-8 billion. This ambition is not mere talk. EQT currently manages a substantial €267 billion in assets, boasting strong fundraising capabilities and an institutional client network. Combining these resources with Coller Capital's secondary market expertise holds genuine promise for creating powerful synergies. For Coller Capital, joining the EQT platform means access to a broader investor base and deal flow. Particularly in the private wealth management sector, where EQT has been actively expanding in recent years, Coller's secondary market solutions can enrich EQT's product offerings for this client segment. From a competitive standpoint, the deal will directly alter the balance of power in the private equity secondary market. Upon completion, EQT will immediately join the global top tier of S transaction players. This may trigger a new wave of industry consolidation, prompting other large private equity firms to accelerate their search for acquisition targets to avoid falling behind in the rapidly growing secondary market. In fact, while considering Coller Capital, EQT also held preliminary discussions with HarbourVest Partners and Pantheon. From an investor's perspective, the deal also offers more liquidity options. The core value of the secondary market lies in providing liquidity solutions for private equity investors. As more large platforms enter this space, investors will have more diversified exit options, potentially further promoting the healthy development of the entire private equity market. The initial surge on the Stockholm stock exchange has subsided, but the industry tremors triggered by this deal are just beginning. EQT's acquisition of Coller Capital is not merely a $3.7 billion M&A case; it is a significant milestone in the evolution of the private equity industry. The blue logo of Coller Capital will now bear the "EQT" mark, and the once-fragmented private equity landscape is being redrawn by large platforms. Asset managers still on the sidelines are suddenly realizing that the secondary market is no longer a supplementary business but a critical battlefield that will determine future competitiveness. With the launch of the Coller EQT brand, the future form of private equity is beginning to take shape—an all-in-one platform integrating primary market investing, secondary market liquidity, and diversified asset classes.
Comments