EQT’s New Private Capital Chiefs See More Take-Private Deals

(Bloomberg) — EQT AB is seeking dealmaking opportunities in the public markets at a time of heightened market volatility, according to the newly-minted leaders of its private capital arm.

Take-privates of listed companies or investing in assets that corporates are selling could be a source of opportunity for EQT at a time when there are fewer asset sales by other buyout firms, said Bert Janssens, who became co-head of EQT’s private capital business for Europe and North America alongside Eric Liu earlier this month.

Some businesses are currently mispriced, such as those listed in 2021 or 2022 with very low liquidity, Janssens said in an interview. Those situations may lead to majority stakeholders who are willing to transact because they are “stuck,” he said. Companies that completed IPOs of at least $500 million during that time period have fallen an average 18% from their offer prices, according to data compiled by Bloomberg weighted by deal size.

Great businesses with the wrong ownership provide another potential area for dealmaking, Janssens added.

“In the era of free money, everybody was piling debt into companies and there are many with very messy capital structures,” he said. “We are happy to clean up the capital structure of a company and run it better.”

EQT has been active in take-private transactions in the past year. The buyout firm in October completed taking London-listed video game developer Keywords Studios Plc private in a £2.1 billion deal, following the purchase of UK veterinary drugmaker Dechra Pharmaceuticals Plc. EQT also made an offer for Swedish component business OEM International AB in 2024.

Janssens and Liu have worked together for more than 15 years, including at Warburg Pincus previously. They took over the helm of running EQT’s private capital in Europe and North America, which manages €113 billion ($122 billion), following Per Franzen’s accession to the top role at the buyout firm.

Bankers had initially predicted that the new US administration would create better conditions for buying and selling, supercharging mergers and acquisitions that just got back on their feet after a lull. However, the on-and-off tariffs against countries including Canada and Mexico, as well as tensions with Ukraine on how to move toward peace with Russia, have spooked markets and kept dealmakers on the sidelines.

“There is always gonna be a shock to the system from macro events — be it interest rate changes, tariffs, or pandemics, but the companies that are performing essential services for customers will tend to be profitable over time,” Liu said in the interview. “Our aim is to generate returns for our investors in any market.”

New York-based Liu also sees room for EQT to scale its presence in the US. EQT manages about €269 billion in assets globally.

“It’s unusual for a global, large private equity organization to have a North American business that is under-penetrated,” he said. “We have a great track record in the US and see a lot of opportunities for growth here.”

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