EQT raises $1.6 bn for Asia mid-market fund, keeps India in investment focus

India, Southeast Asia, Japan, and Australia will be the fund's primary target regions.

Swedish investment giant EQT's newest fund, BPEA EQT Mid-Market Growth Partnership (MMG Fund), has raised $1.6 billion, surpassing its target of $750 million.

India, South East Asia, Japan, and Australia will be the fund's primary target regions, EQT said in a press release.

MMG strategy makes investments in Asia's high-growth mid-market businesses. It is a continuation of the large-cap buyout strategy of EQT Private Capital Asia, which is focused on mid-market control buyouts. The investment approach is the same, with a focus on the technology, services, healthcare, and technology services sectors.

“We have been investing in Asia for the best part of three decades and now have a fully scaled and established large-cap platform. Following this growth, we found that we no longer had a dedicated pool of capital to invest in compelling mid-market companies,” said Jean Salata, chairman of EQT Asia and head of the EQT Private Capital Asia advisory team.

The fund's main objective is to make investments in fast-growing midmarket businesses across Asia. The region's private markets are still comparatively underdeveloped. In 2023, funds with an Asia-focused emphasis received just 9 percent of all money raised worldwide.

“This dedicated strategy aims to help address this financing gap. The region is the epicentre of global growth, expected to contribute 60 percent of global GDP by the end of 2024,” EQT said in a statement on May 27.

Present investors in EQT's Asian large-cap buyout funds provided more than 80 percent of the capital. Investors from other EQT funds that made their first allocation to the Asian platform made up the majority of the remaining significant commitments.

The company stated that a large percentage of the pledges were from its own staff members. EQT has raised around $29 billion in total through the fund's final closing, which includes $24 billion for EQT X in February and $3.3 billion for EQT Future in March.