India is a key focus for EQT’s mid-market growth fund

Swedish firm EQT expects India to be “one of the largest markets” for its new mid-market growth fund, which closed at $1.6 billion on Monday.

“EQT has not set deployment targets by geography, but expects India to be one of the largest markets for the fund. The fund has made four investments to date, two of which have been in Indian companies,” an EQT spokesperson said. 

The two Indian companies it invested in via its mid-market strategy are Securonix and Chennai-based Indium Software. In December 2023, it said it was acquiring a majority stake in Indium, which said it would use the funds to expand into “generative AI and Advanced Analytics.”

On Monday, EQT said that the Asia-focused mid-market buyout fund, which had an initial target size of $750 million, closed with $1.6 billion in total fund commitments, of which $1.4 billion will generate fees for EQT.

“Sectors of interest within mid-market segments in India would be technology, healthcare and technology, business and financial services,” the EQT spokesperson said.

Also Read: Why this Swedish PE firm is willing to bet $5 billion in India this year

The Mid-Market Growth strategy—which focuses on the technology, services, and healthcare sectors across Asia, will make investments in South East Asia, Japan and Australia, in addition to India, the firm said. EQT said this strategy “is a natural extension” of its established large-cap buyout platform in Asia. 

‘Have been investing in Asia and now have a fully-scaled and established large-cap platform’

“We have been investing in Asia for the best part of three decades and now have a fully-scaled and established large-cap platform," said Jean Salata, chairman of EQT Asia and Head of the EQT Private Capital Asia advisory team. "Following this growth, we found that we no longer had a dedicated pool of capital to invest in compelling mid-market companies. With EQT Private Capital Asia Mid-Market Growth we return to our roots. We already had the track record, local expertise and global capabilities to identify the champions of tomorrow while they are still mid-sized. Now we have the capital to execute.” 

Through its buyout fund, EQT made a $1.15-billion buyout of HDFC Credila last year and also acquired a majority stake in Indira IVF, valuing the company at $1.1 billion.

In April, Salata told Mint that the firm had lined up $5 billion worth of deals in its pipeline for 2024. “At the moment, I have to say that our pipeline is as active as I've ever seen it," Salata said in an interview with Mint in April.

“We currently have $5 billion worth of pipeline in advanced stages of final negotiation for investment (in India) this year. That shows the kind of activity level we are seeing," added Salata, who had started UK-based Baring’s Asia PE investment before leading a management buyout of the programme in 2000.

EQT’s Private Capital strategy across the world has raised nearly $29 billion in total commitments in 2024, the firm said.