Swedish private equity powerhouse EQT has reported a significant increase in net profit for the first half of the year, driven by growth in its fee-generating assets under management. The firm also indicated that its fundraising momentum is expected to remain strong in the latter half of the year.
The group disclosed on Friday a net profit of €663 million (approximately $758.8 million) for the first six months, a substantial rise from the €346 million profit recorded in the same period last year.
Revenue climbed to €1.61 billion from €1.27 billion a year earlier. This increase was supported by a significant rise in interest and investment income, which more than offset a decline in management fee revenue.
As of June 30th, the firm's assets under management that generate fees reached €155.4 billion, up from €141.2 billion at the end of December. This figure exceeded Visible Alpha analyst consensus expectations of €144.7 billion.
EQT stated that its various funds deployed €19 billion in investments during the first half, a sharp increase from the €7 billion invested in the prior-year period. Total divestment proceeds from fund investments amounted to €7 billion, lower than the €13 billion generated in the first half of last year.
Per Franzén, Chief Executive Officer and Managing Partner of EQT, commented that all of the firm's core funds performed at or above target. He added that the company has a substantial pipeline of high-quality new investment opportunities for the second half of the year.
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