EQT enters $3.2bn deal to acquire Coller Capital

Core Viewpoint - EQT has agreed to acquire Coller Capital, a secondaries investment firm with nearly $50 billion in assets under management, for $3.2 billion, enhancing EQT's capabilities in private equity and secondary markets [1][3]. Group 1: Acquisition Details - The acquisition values Coller Capital at $3.2 billion on a cash and debt-free basis, with payment made through the issuance of approximately 81 million EQT shares, representing about 7% of EQT's outstanding shares at a price of Skr 355 each [1]. - Coller Capital manages close to $50 billion in assets, including $33 billion classified as fee-generating [1][2]. Group 2: Company Background - Established in 1990 and headquartered in the UK, Coller Capital specializes in liquidity solutions within private equity and private credit secondary markets, employing 330 people across 11 global offices [2]. - The firm serves institutional investors, private wealth clients, and insurance entities [2]. Group 3: Strategic Integration - The integration aims to combine Coller Capital's secondary market expertise and data analytics with EQT's international investment platform, broadening capabilities across private equity, infrastructure, real estate, and secondary investments [3]. - EQT's CEO highlighted that entering the secondaries space with Coller is a significant step in EQT's strategic development [3]. Group 4: Growth Potential - The transaction is expected to unlock growth opportunities, with the potential to double Coller's business size in less than four years [4]. - Both firms plan to expand into new areas of the secondary market, particularly in Asia, where growth potential is identified [4]. Group 5: New Business Platform - EQT will establish a new Secondaries business platform named "Coller EQT," which will include four evergreen products from Coller Capital's portfolio with a net asset value of $4.1 billion [5]. - Jeremy Coller will lead this new division and join EQT's executive committee, operating alongside EQT's Private Capital and Real Assets divisions [5]. Group 6: Operational Structure - Investment decision processes at Coller EQT will remain separate from other EQT units [6]. - State Street, holding a minority stake in Coller Capital, will receive shares in EQT as part of the arrangement, and EQT will have rights to invest in 35% of carried interest from future closed-ended funds managed by Coller Capital [6].