FULLTEXT DEL 1 AV 4
Årsredovisning 2023
===== SIDA 1 =====
Annual and
Sustainability
Report 2023
===== SIDA 2 =====
Contents
01 Introduction to EQT
4 A differentiated leader in active ownership
5 EQT at a glance
6 EQT’s business model
7 EQT’s financial model
02 Reflections on 2023 and beyond
9 Letter from the Chairperson
10 Letter from the CEO
12 2023 in brief
13 Towards our targets
03 Private markets and EQT
16 The private ownership model
17 Private markets are set for structural growth
18 EQT and its clients
20 Strengthening relationships with the private wealth segment
04 EQT’s strategy
23 Creating the global leader in active ownership strategies
24 Strategic developments since the IPO
25 A diversified global platform
26 EQT’s long-term strategic priorities
05 EQT AB – the listed entity and
revenue model
28 EQT AB – the listed entity
29 Explaining management fees and carried interest
06 EQT Playbook
32 EQT Playbook
33 Thematic investment approach
36 Local-with-locals
36 House of Value Creation
37 Governance model
37 EQT Network
39 Digitalization
40 Sustainability
07 People
46 People at the core of EQT’s success
47 Developing people
48 Diversity, equity and inclusion as a value creation lever
49 EQT Foundation – guardian of EQT’s core values
08 Financial statements
52 Board of directors’ report
56 Consolidated financial statements with notes
91 Parent company financial statements with notes
100 Proposal for the distribution of net income
101 Signatures of the board of directors and the CEO
102 Managing risks
109 Auditor’s report
09 Sustainability notes
114 Sustainability notes
139 GRI content index
143 Auditor’s Limited Assurance Report
10 Corporate governance
145 Corporate governance report
145 Statement of Purpose
11 Additional information
159 The EQT AB share
162 Additional fund information for selected funds
164 Additional fund performance information
165 Alternative performance measures (APM)
168 Definitions
169 AGM-information
A global leader in active ownership
EQT Annual and Sustainability Report 2023 / Page 1
Contents
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About this report
EQT AB (publ) 556849-4180 reports
the Group’s financial and non-financial
information in a joint report. The formal
annual report consists of a Board of
directors’ report and financial statements
including notes and has been audited by
external auditors.
EQT’s sustainability reporting is found
in the following chapters and pages:
Reflections on 20223 and beyond (14),
Private Markets and EQT (19), EQT Play-
book (32-35, 40-44), People (46-48) and
in the Sustainability notes (114–142).
The Sustainability Report has been
prepared in accordance with the GRI 2021
Standards and a GRI content index has
been prepared. EQT’s sustainability
reporting further fulfills the requirement
for a statutory sustainability report found
in the Swedish Annual Accounts Act.
This report is also available in Swedish.
In the event of discrepancies, the Swedish
original will supersede the English version.
Data as of 31 December 2023, unless
otherwise stated.
===== SIDA 3 =====
Vision
What we strive for
To be the most reputable
investor and owner.
Our values
What we stand for
High performing
Respectful
Entrepreneurial
Informal
Transparent
Mission
What we do and how
With differentiated talent and the
best global network, EQT uses a
thematic investment strategy and
distinctive value creation approach
to create superior returns for EQT’s
investors.
Purpose
Why we exist
To future-proof
companies and make
a positive impact for all.
EQT Annual and Sustainability Report 2023 / Page 2
Contents
Download print optimized PDF
Introduction to EQT 3
A differentiated leader in
active ownership 4
EQT at a glance 5
EQT’s business model 6
EQT AB’s financial model 7
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 4 =====
BPEA VIII
IMG Academy (Nord Anglia)
EQT Private Equity Asia, in partnership with existing
portfolio company Nord Anglia Education, acquired IMG
Academy, a leading education institution supporting over
100,000 student-athletes. With a sports-led approach to
holistic education and empowering student-athletes,
IMG Academy benefits from strong secular tailwinds,
including growing focus on health and wellbeing within
academia and increased spending on education.
With Asia being IMG Academy’s largest source of
international students, EQT and Nord Anglia plan to
support its overseas expansion and leverage partnership
opportunities between the two institutions, including
integrating IMG Academy’s sports-focused education
services in Nord Anglia’s global platform spanning 33
countries.
01
Introduction to EQT
4 A differentiated leader in active ownership
5 EQT at a glance
6 EQT’s business model
7 EQT’s financial model
===== SIDA 5 =====
A differentiated leader in active ownership
EQT enters its fourth decade
as a leader in active owner-
ship. With a Nordic heritage
and focus on thematic invest-
ments, it is primed to build
on the first 30 years.
1) Source: PEI 300 list; Infrastructure Investor, top 100; PERE, top 100, by commitments raised during the past five years.
2) Average sales between entry and exit of realized portfolio companies, as per December 31, 2023. For EQT Private Capital EU&NA:
Refers to realized assets within EQT Mid Market strategy and EQT V-VIII. For EQT Infrastructure: Refers to realized assets within EQT Infrastructure I-III.
3) Weighted sales CAGR between entry and exit of realized portfolio companies, as per December 31, 2023. For BPEA Fund VI-VIII.
Value-based culture
Respectful
High-performing
Entreprenurial
Transparent
Informal
Local-with-locals
in countries
representing
80%
of global GDP
A global leader1)
EQT Private Equity
no.
3
EQT Infrastructure
no.
5
EQT Exeter
no.
10
Read more in
People
Read more in
Strategy
Read more in
Strategy
Future-proofing
companies
Average compounded annual sales growth
in the EQT funds’ portfolio companies:
17% 13% 12%
Private
Capital
EU & NA2)
Private
Capital
Asia3)
EQT
Infrastruc -
ture2)
Thematic and
sector based approach
World-class
capabilities in digitali -
zation and sustainability
32
portfolio companies with validated
science-based targets
Read more in
EQT Playbook
Read more in
EQT Playbook
Read more in
EQT Playbook
EQT
Playbook
EQT Annual and Sustainability Report 2023 / Page 4
Contents
Download print optimized PDF
Introduction to EQT 3
A differentiated leader in
active ownership 4
EQT at a glance 5
EQT’s business model 6
EQT AB’s financial model 7
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 6 =====
EQT funds
EQT has EUR 130bn in FAUM in more than 50
active EQT funds. The EQT Private Equity and
EQT Infrastructure funds target a gross return of 2.0–2.5x
and 1.7–2.2x respectively, on the invested capital over the
life of the funds.
EQT at a glance
EQT manages companies and assets worth more than EUR 232 billion, across Private Equity, Infrastructure and Real Estate.
EQT AB Group
The EQT AB Group manages, advises and invests in the
EQT funds. EQT’s revenues comprise management fees
from the EQT funds, a share of profits (carried interest)
and investment income from the EQT funds.
EBITDA1)
€1,226m
Employees
1,838
Offices in
26 countries
Revenue1)
€2,131m
EQT funds’ portfolio
companies and assets
EQT’s investment advisory teams advise the EQT funds
which, together with the management teams, deliver on
a comprehensive value creation plan for each portfolio
company and asset during the EQT funds’ ownership.
Clients
1,200
Total AUM
€232bn
Number of
portfolio companies
Employees in
portfolio companies
~300 ~700,000
1) Adjusted figures.
2) Includes funds since inception. For EQT Private Capital Asia, funds BPEA VI, BPEA VII
and BPEA VIII are included.
Private Capital
% of
FAUM
Realized
Gross MOIC
Net
IRR
Private Capital
Europe & North
America 43+57 2.7x 19%
Private Capital
Asia2) 13+87 2.4x 17%
Real Assets
% of
FAUM
Realized
Gross MOIC
Net
IRR
EQT
Infrastructure 28+72 2.5x 16%
EQT
Exeter 17+83 2.5x 20%
42%
28%
13%
17%
Portfolio companies
Current number
of buildings
Square meter
real estate
2,030 37m
Assets
EQT Annual and Sustainability Report 2023 / Page 5Introduction to EQT
Contents
Download print optimized PDF
Introduction to EQT 3
A differentiated leader in
active ownership 4
EQT at a glance 5
EQT’s business model 6
EQT AB’s financial model 7
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 7 =====
3
EQT’s business model
3 Future-proof and drive
performance
• The EQT investment advisory
team, together with the res-
pective portfolio company’s
management team and board,
executes on a comprehensive
value creation plan during the
EQT fund’s ownership.
• Companies and assets are
transformed through digitali-
zation, sustainable transfor-
mation, add-on acquisitions,
geographic expansion, and
investments in people.
The EQT funds are typically
invested and realized within ten
years. Through an active ownership
approach, companies and assets
are transformed to become more
relevant, more sustainable, more
efficient and more valuable. The
funds then return the capital to
clients as it realizes investments.
5
34
2
1
5
EQT’s clients commit
capital to EQT funds
Source and invest in
companies and assets
Future-proof and
drive performance
Realize investments
Return capital
to clients
1 EQT’s clients commit capital
to EQT funds
• EQT’s clients include pension
funds investing capital to
meet future pension obliga-
tions, sovereign wealth funds
responsible for its citizens’
savings, or families managing
wealth for future generations.
• To cater to its cli ents’ invest-
ments objectives, EQT has
raised larger funds and
added new investment
strategies.
2 Source and invest in
companies and assets
• The EQT funds invest in mar-
ket leading companies and
assets, supported by long-
term secular growth trends.
• The companies often play
a critical role in societies –
for example by catalyzing
transition to sustainable
energy sources, or providing
digital infrastructure.
4 Realize the investment
Having executed on its value
creation plan, EQT realizes the
investment, often to a strategic
investor, another fund man-
ager, or in some cases, via a
public market listing.
5 Return capital to clients
As the fund realizes its invest-
ments, capital is returned
to the clients and the fund is
typically terminated within
ten years.
A business
model based on a
commitment to invest
clients’ capital, drive value
creation, and generate
consistent, attractive
returns over five to ten
years.
EQT Annual and Sustainability Report 2023 / Page 6Introduction to EQT
Contents
Download print optimized PDF
Introduction to EQT 3
A differentiated leader in
active ownership 4
EQT at a glance 5
EQT’s business model 6
EQT AB’s financial model 7
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 8 =====
EQT’s financial model
… and a predictable and well
managed cost base
EQT’s operating expenses consist mostly
of direct personnel expenses or operating
expenses closely related to the personnel
base and size of operations, such as
external consultants.
… drive growth in FAUM
If the EQT funds create strong relative
returns, this will translate into investor
demand for successor funds, growth
in fee-generating assets under
management and, consequently,
growth in management fees.
With complementary
revenue streams …
Attractive returns in the EQT funds
increases the potential to generate
carried interest and investment
income.
Consistent and attractive
client returns …
EQT’s financial model is based on the
delivery of consistent and attractive
returns to fund investors.
Private Capital
Europe & North America 2.7x
Private Capital
Asia 2.4x
EQT Infrastructure 2.5x
EQT Exeter 2.5x
EQT’s financial model is simple and scalable. It is based on the delivery of consistent and attractive returns to fund investors.
EQT AB Group’s revenues consist of two complementary streams: management fees as well as carried interest and investment income.
20232022202120202019
Realized
Gross MOIC FAUM
Management fees
Revenues, illustrative
Carried interest and
investment income
Operating expenses, illustrative
Personnel expenses
70+30+I
Other operating
expenses
EQT Annual and Sustainability Report 2023 / Page 7Introduction to EQT
Contents
Download print optimized PDF
Introduction to EQT 3
A differentiated leader in
active ownership 4
EQT at a glance 5
EQT’s business model 6
EQT AB’s financial model 7
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 9 =====
EQT VIII
Schülke
EQT Private Equity sold Schülke, a leader in infection
prevention and treatment for the healthcare industry, to
a consortium of family offices. Having acquired Schülke
in 2020, EQT Private Equity helped drive Schülke to
double digit annual revenue growth and almost doubled
EBITDA in its core healthcare business in three years.
Schülke was repositioned to focus on the healthcare
and life science market, while expanding into new
geographies and sales channels. It also underwent a
sustainability transformation; launched a pioneering
green hospital-grade product line, transitioned to green
electricity, and signed up to the Science-Based Targets
initiative.
02
Reflections on 2023
and beyond
9 Letter from the Chairperson
10 Letter from the CEO
12 2023 in brief
13 Towards our targets
===== SIDA 10 =====
Since we founded EQT in 1994, the private mar-
kets industry has grown to be a major driver in
the global economy. It supports millions of jobs,
facilitates innovation across sectors, and is for
example a driving force behind the digitaliza-
tion and energy transition of societies. And yet,
it’s easy to forget that the industry is still rela-
tively young, with its history dating back just a
few decades. Now the industry is evolving and
maturing, and the largest players are pulling
further ahead. EQT is well placed to remain at
the forefront of this trend.
Performance is key
At EQT’s inception, the industry was nascent
and fragmented. Firms typically focused on a
single strategy in a specific geography. Over
time, the best performing managers built on
their early success to expand into new asset
classes or geographies. In EQT’s case, we
expanded out of Europe into the US and Asia,
and became one of the first to translate the
private equity ownership model into infra-
structure.
At EQT, we are active owners, not asset
managers. Strong governance is at the heart
of our approach to ownership. We transform
companies and assets based on long-term
perspectives, while enabling management
teams to be decisive in the moment.
EQT has developed rapidly over the past
30 years. However, the culture and long-term
mindset that the Wallenbergs once brought
to EQT has remained. We believe that being
informal, transparent, and respectful creates
a high-performing culture. We want to ensure
that all stakeholders have aligned incentives,
we aim to create win-win situations, and to
form long-term relationships.
It is also vital that we have the best talent
working at EQT. We like entrepreneurs, people
who push boundaries and strive for the best.
We also believe in the power of collaboration,
as many minds are always better than one.
At EQT we want to hire people that combine
the best of both these worlds.
With these ingredients in place, we believe
we put portfolio companies and assets in the
best position possible to focus on what ulti-
mately matters: driving performance. Anyone
can hope to benefit from an uptick in market
valuations. But if you apply an active owner-
ship approach, have the best talent, and work
closely with a management team to future-
proof a business, then company performance
will improve during and beyond ownership.
That way we can drive the portfolio compa-
nies and assets to have a positive impact on
the world in which they operate, while at the
same time delivering consistent returns to
our clients, whatever the market environment.
It’s a mutually reinforcing cycle. Doing good
is simply good business.
The future landscape
The number of private market firms boomed
in the period after the global financial crisis.
But in recent years we have seen market con-
ditions tighten, and the fundraising market has
turned more challenging. Firms with strong
performance track records, a proven ability
to generate returns across cycles, and the
resources to continuously be ahead of the
curve are winning.
As a result, industry consolidation is accelerat-
ing. We are seeing the best performing smaller
firms partnering with global platforms to secure
their long-term future. You can see this trend at
play in EQT’s history since our IPO in 2019. We
have identified gaps in our platform and selec-
tively addressed them, successfully executing
five strategic transactions that have built the
firm into a major player. Christian and the team
now have a proven playbook and we are an
attractive home for high-performing firms with
global ambitions and matched culture.
Staying true to the fundamentals
I’m pleased to say that we enter our fourth
decade in our strongest position ever. Our
teams are performance-driven, unafraid to
make ambitious but thoughtful decisions, and
bring diverse perspectives. We have a robust
global platform, with strengths in areas such
as AI, sustainability and digitalization, which
I believe will play a pivotal role in the future
of all businesses. And we have stayed true to
our original fundamentals: being a thematic
investor, an active owner, and a values-driven
and entrepreneurial firm.
The Board is united in its appreciation
of the dedication the Executive Committee and
the entire EQT organization have shown. Mar-
kets in 2023 were not easy to navigate and yet
performance remains strong. We would also
like to thank the senior leaders in our Industrial
Advisor Network for their constant support,
who all bring invaluable insight, experience
and networks to support the portfolio compa-
nies and investment advisory teams.
Letter from the Chairperson
At the forefront of an industry’s evolution
“I’m pleased to say
that we enter our fourth
decade in our strongest
position ever.”
Conni Jonsson
Founder and Chairperson
Most importantly, we would like to thank EQT’s
clients and shareholders for their trust. The
past 30 years would not have been a success
without your support and we look forward to
what is next to come.
Conni Jonsson
Founder and Chairperson
EQT Annual and Sustainability Report 2023 / Page 9Reflections on 2023 and beyond
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Letter from the Chairperson 9
Letter from the CEO 10
2023 in brief 12
Towards our targets 13
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 11 =====
Letter from the CEO
Forward thinking from the start
Exploring new strategic avenues
More than a decade ago, our infrastructure
strategy made its first investment along the
energy transition theme with the acquisition of
NORD. We continue to believe that the energy
transition is one of the most important issues
for society to solve in the coming decades,
reshaping all economies. Having long recog-
nized the role that private capital can play in
this journey, we intend to continue building on
our track record in the energy transition within
infrastructure.
We are also reinforcing our leadership in
healthcare, with the recent launch of EQT
Healthcare Growth, a buyout strategy focused
on scaling innovative, fast-growing European
companies in this space. When combined with
EQT Life Sciences and our flagship private
equity strategy, which has committed over 40%
of allocations to healthcare in recent vintages,
EQT can now support companies in every
stage of their development.
In Asia, we introduced the BPEA Mid-Mar-
ket Growth. This new strategy is the latest inno-
vation from our Asia team, which has fully
transitioned into EQT’s global platform and is
now known as EQT Private Capital Asia. EQT is
now one of few with a global approach and
local teams in every major Asian region.
“Being forward thinking from
the start does not just apply to
our investment strategies. It is
also at the core of how we
future-proof our group and
the portfolio.”
Christian Sinding
CEO and Managing Partner
Perhaps the most important step in our
expansion over the last year was launching
EQT Nexus and EQRT, our first products tai-
lored to individual investors. EQT has histori-
cally raised around eight percent of capital
from the private wealth segment. Through
these ever-green strategies, we are now
enabling a broader client base to access the
world of EQT and private markets investing.
EQT has always strived to be the best owner possible. We aim to make a positive
impact for all by actively transforming companies and assets that play a meaning-
ful part in tomorrow’s economy. As we enter our fourth decade, the goal remains
the same: to always be innovating, as we embrace opportunities like climate action
and AI. Its all about being forward thinking from the start.
EQT Annual and Sustainability Report 2023 / Page 10Reflections on 2023 and beyond
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Letter from the Chairperson 9
Letter from the CEO 10
2023 in brief 12
Towards our targets 13
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 12 =====
Harnessing innovation in dealmaking,
AI and sustainability
Being forward thinking from the start does not
just apply to our investment strategies. It is
also at the core of how we future-proof our
group and the portfolio.
Our investment teams, embedded in coun-
tries representing over 80 percent of global
GDP, are supported by top entrepreneurs and
global executives in our network of more than
600 Industrial Advisors. They help EQT to
source deals and help ensure we have the
insights needed to drive transformation. Part
of value creation is also ensuring we exit
investments at the best time. We have been
innovating to lengthen the runway for key
assets – such as with EQT Infrastructure’s lat-
est partnership with existing portfolio com -
pany EdgeConneX to develop data centers in
new markets – and exploring new ways to
capture liquidity, for example by setting in
motion a public conversation about alterna-
tive exit paths including “private IPOs”.
EQT is a pioneer in the application of AI in
the private markets industry. For the best part
of a decade we have been building Mother-
brain, our proprietary platform which now
encompasses around 30 employees. This team
is increasingly working directly with portfolio
companies to leverage the power of AI, for
instance by finding add-on targets. Under-
scoring our ambitious efforts in the realm of
AI, we were awarded EQT’s first ever patent on
automation and AI. Our digital capabilities
have been recognized as best-in-class and we
remain committed to growing this capability.
2023 was also an exciting year for us in
terms of decarbonization as our work with the
Science Based Targets initiative, one of EQT’s
flagship climate commitments, gained speed.
At year-end 32 portfolio companies had vali-
dated SBTs with another 28 in the process, sur-
passing our target of 40% coverage across our
funds’ portfolio companies, by invested equity.
Next, we will tackle the pathway to net zero for
our real estate assets. A recent achievement I
am excited about is the launch of the EQT
thinQ Client Academy which is designed to
help advance future-proofing the private
markets industry, with a focus on sustainability
and AI. A priority in the new year is to spark
debate on this platform amongst our commu-
nity of clients and sustainability experts.
Our commitment for 2024
Looking back on the last year, I’m proud of
what we have achieved. Guided by our Nordic,
industrialist heritage, we doubled down on
driving real, tangible improvements in the
portfolio by investing in expansion, driving
profitability, increasing resilience, and pursu -
ing innovation in sustainability, digitalization
and AI. We now have an eventful 12 months
ahead of us, with a healthy investment pipe-
line across geographies and asset classes.
I’m equally excited by our long-term vision.
While solidifying our leadership in our existing
strategies, we will selectively grow and fill
white space in the platform. Most importantly,
our focus will remain laser-focused on secur-
ing outstanding performance for an expanding
client base, while remaining true to our funda-
mental philosophy of active ownership. I am
confident that as we enter 2024 and EQT’s
fourth decade, we will remain forward-think-
ing – as we have been from the start.
Christian Sinding
CEO and Managing Partner
“Perhaps the most important
step in our expansion over
the last year was launching
EQT Nexus and EQRT, our
first strategies tailored to
individual investors.”
Christian Sinding
CEO and Managing Partner
EQT Annual and Sustainability Report 2023 / Page 11Reflections on 2023 and beyond
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Letter from the Chairperson 9
Letter from the CEO 10
2023 in brief 12
Towards our targets 13
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 13 =====
• EQT launched its first semi-liquid strategy, EQT Nexus, providing
access for individuals to a diversified portfolio of EQT’s funds.
Read more Private Markets
• During the year, work to integrate and optimize synergies with
BPEA (now Private Capital Asia) was completed.
• EQT opened an office in Seoul, and EQT Infrastructure made
its first investment in South Korea with SK Shieldus.
• EQT published its net zero guidelines.
Read more EQT’s website
• EQT was included in the Dow Jones Sustainability indicies for
the second consecutive year.
2023 in brief
• In 2023, EQT raised more than EUR
27bn1). EQT reached the target fund
size for EQT X, and finalized fund-
raising during the first quarter of
2024 with 21.7bn of fee-generating
AUM. Fundraising continued for EQT
Infrastructure VI, with EUR 13.7bn of
fee-generating commitments as of
year-end.
• EQT Exeter Industrial Value Fund VI
held its final close at USD 4.9bn
of fee-generating commitments,
exceeding its target size of USD 4.0bn.
While 2021 was an exceptionally strong
exit year, exit activity was muted in
2022 and 2023 due to broader market
uncertainties. Investment activity was
reaccelerated in 2023, increasing by
60% compared to 2022.
Fee-generating AUM (FAUM)
EUR bn
0
30
60
90
120
150
20232022202120202019
36
52
73
113
130
Investments by EQT funds
EUR bn
0
7
14
21
28
35
20232022202120202019
10
13
21
12
18
Gross EQT funds exits
0
7
14
21
28
35
20232022202120202019
EUR bn
7
3
31
11
6
All key EQT funds are on or above plan to meet Gross MOIC targets.
Investment performance
On plan Above plan
Private
Capital
EQT IX EQT VII
BPEA VIII EQT VIII
EQT X BPEA VII
Real
Assets
EQT Infrastructure IV EQT Infrastructure III
EQT Infrastructure V
EQT Infrastructure VI
1) Including co-investments.
Total AUM
€232bn
Key events
Value creation
Fundraising
Investment and exit activity for the EQT funds
EQT Annual and Sustainability Report 2023 / Page 12Reflections on 2023 and beyond
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Letter from the Chairperson 9
Letter from the CEO 10
2023 in brief 12
Towards our targets 13
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 14 =====
The Board has proposed an increased dividend per
share of SEK 3.60 (SEK 3.00) for the fiscal year 2023,
to be paid in two installments in 2024.
Towards our targets: Financial
The EQT AB Board has adopted the following medium to long-term financial targets over a fund cycle.
In 2023, adjusted total revenue amounted to EUR
2,131 m, an increase of 39%. Management fees
increased by 48% , driven by Private Capital and
Infrastructure, as well as the full-year contribution
of BPEA, now Private Capital Asia.
Revenue growth
Total revenue growth
over time to exceed the
long-term growth rate
of the private markets
industry.
EUR m
0
400
800
1,200
1,600
2,000
2,400
20232022202120202019
570
762
1,623 1,536
2,131
EUR m
0
100
200
300
400
20232022202120202019
197
234
270
316
384 2)
2.20
2.40
2.80
3.00
3.60
Adjusted EBITDA amounted to EUR 1,226 m,
corresponding to a margin of 58%.
EBITDA margin
Adjusted EBITDA margin
to be in the range of 55
percent to 65 percent.
Margin Dividend per share
Dividend policy
To generate a steadily
increasing dividend per
share.
1) Adjusted figures.
2) The Board has proposed a dividend of SEK 3.60 per share, corresponding to approximately EUR 384 million, using EUR/SEK
rate 11.096 as of 31 December 2023 and based on the total number of shares outstanding as of 31 December 2023.
EBITDA / EBITDA margin1)
EUR m
0
300
600
900
1,200
1,500
20232022202120202019
262
385
1,100
46%
51%
68%
829
54%
1,226
58%
Revenue1) Dividend
Management fees Carried interest & investment income
EQT Annual and Sustainability Report 2023 / Page 13Reflections on 2023 and beyond
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Letter from the Chairperson 9
Letter from the CEO 10
2023 in brief 12
Towards our targets 13
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 15 =====
Accountable
leadership
Integrate sustain -
ability into
decision- making,
linking incentives
and ensuring
transparency.
Sustainability governance
• EQT established a Sustainability Committee in 2022. In 2023, a new format for annual
sustainability training for the board was set and the first annual training was held in
March 2023.
• EQT submitted it s first Communication of Progress to United Nations Global Compact
for 2023, having become an official signatory to their principles the year before.
• To further drive accountable leadership, EQT has linked sustainability performance
to incentives, from 2023 also as part of the share program.
Sustainability governance
88%
of the EQT funds’ portfolio companies have appointed
board sustainability champions to ensure accountability
85%
EQT funds’ portfolio companies have identified a
transformational KPI
25%
of the EQT funds’ portfolio companies are formal
signatories of the United Nations Global Compact
Regenerative
processes
Respecting and
restoring nature
and adapting
to climate change.
Equitable
business
Ensuring equal
rights and oppor-
tunities across
all aspects of
the business.
Path to Net Zero1)
Gender diversity
EQT AB EQT funds2)
Employee
engagement
8.0
employee
engagement score
Employee
engagement
82%
of the EQT funds’
portfolio companies
have conducted an
employee engage -
ment survey
Reducing Scope 3 emissions from
business travel by 30% by 2030
Reducing Scope 1 & 2 emissions
by 50% by 20302)
2030
target
2023202220212019
baseline
406
253
339 387
203
Metric tons CO2e
2030
target
2023202220212019
baseline
12,593
5,142
15,392
17,386
8,815
Metric tons CO2e
Path to net zero3)
60
of EQT funds’ portfolio companies
have been set on path to net zero4)
32
of these have received validated
science-based targets (SBTs), this
equals 44% portfolio coverage 5)
94%
floor area for real estate assets
acquired within the reporting
year with a decarbonization plan 6)
Towards our targets: Sustainability
EQT’s long-term sustainability ambitions and current performance of operational KPIs.
1) Current science-based target scope, excluding EQT Exeter and EQT Private Capital Asia.
2) The metrics cover EQT funds’ portfolio companies within EQT Private Equity, EQT Future, EQT Infrastructure and BPEA VII-VIII, i.e. the investment strategies where EQT funds typically have control or co-control. Data as per 31 December 2022 unless otherwise stated.
3) Data as per 31 December 2023.
4) Defined as EQT funds’ portfolio companies with commitments or submissions of targets to SBTi (28) or with validated SBTs (32), including portfolio companies exited during the year.
5) Based on % invested equity, according to SBTi’s guidelines for private equity firms.
6) Percentage floor area of acquisitions with 1.5 degree-aligned decarbonization plans divided by the total floor area of acquisition since Jan 1, 2023, excluding land acquisitions.
Gender distribution
among top 20% earners
22%
women
78%
men
Gender distribution
among top 20% earners,
average share
29%
women
71%
men
Gender diversity
average share
Wo men Men Wo men Men
29+71
Board of
Directors
33+67
Management Board of
Directors3)
Management
22+78 22+78
Renewable electricity
50%
average share renewable
electricity in portfolio companies
16
megawatts (MW) of installed and
operational renewable energy
capacity at properties owned by
EQT Exeter3)
Renewable
electricity
100%
share renewable
electricity in EQT’s
offices
33% 22%22%29%
67% 78%78%71%
EQT Annual and Sustainability Report 2023 / Page 14Reflections on 2023 and beyond
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Letter from the Chairperson 9
Letter from the CEO 10
2023 in brief 12
Towards our targets 13
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
22%
78%
===== SIDA 16 =====
EQT Infrastructure VI
Lazer Logistics
EQT Infrastructure acquired Lazer Logistics, the largest
provider of outsourced yard management and trailer
spotting services in North America. Outsourced yard
management is a mission-critical service, facilitating
the safe, efficient, and low-carbon movement of goods
throughout the supply chain. The sector is growing,
supported by tailwinds including: precision logistics
becoming a source of differentiation for companies,
domestic manufacturing and eCommerce penetration
growing, and supply chain decarbonization proliferating.
EQT will help position Lazer for long-term success by
leveraging its track record of investing in North American
Transportation and Logistics assets and its expertise in
fleet electrification and digital acceleration initiatives.
03
Private markets and EQT
16 The private ownership model
17 Private markets are set for structural growth
18 EQT and its clients
19 In practice: Launch of EQT thinQ Client Academy
20 Strengthening relationships with the private wealth segment
21 In practice: Introducing EQT Nexus
===== SIDA 17 =====
The private ownership model
Private markets, with its
investment universe, pres-
ents attractive investment
oppor tunities. The oppor-
tunity is growing as access
to long-term capital and a
superior governance model
means that companies are
increasingly staying private
for longer.
The private ownership model
Private ownership provides a superior ownership model for
many companies and assets. Access to capital, deep sector
and operational expertise, and global insights allow for rapid
scaling and transformation of companies and assets, based on
strong governance and aligned incentives.
Large investment universe
and attractive opportunities
Over the past 25 years, value creation has gradually shifted
to private markets, where companies and assets can be
developed, without the requirements and costs associated
with a public listing. At the same time, privately held compa-
nies, spanning ventures to large caps, offer increased port folio
diversification and unique risk/return combinations.
Public vs. private equity-backed companies1)
US Private Equity-backed companies
US public companies
0
2,000
4,000
6,000
8,000
10,000
20162012200820042000
Governance
• Direct ownership
and control
Systematic value
creation model
• Sector and operational
expertise
Capital
• Access to equity
and debt
• Flexible capital
structures
Reporting obligations
• Transparent reporting to fund investors
• Lower costs and requirements than those imposed on
listed companies
Aligned incentives
• Management
ownership
1) WorldBank and Pitchbook M&A Report.
EQT Annual and Sustainability Report 2023 / Page 16Private markets and EQT
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
The private ownership model 16
Private markets are set for
structural growth 17
EQT and its clients 18
Strengthening relationships with
the private wealth segment 20
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 18 =====
Private markets are set for structural growth
Private markets have
provided higher returns
compared to public mar-
kets, and offer diversifica-
tion benefits to investors,
with low correlation to
other asset classes.
Higher returns compared to public markets1)
Private markets have historically achieved high returns
compared to public markets, even when accounting for the
impact of fees2). EQT’s outperformance has been driven by
its active ownership and thematic investment approach.
1) EQT EQT Private Capital key funds
performance.
2) Source: Cambridge Associates.
3) Source: Cambridge Associates, “Ex US
Developed Markets Private Equity & Venture
Capital” , September 2023. The index (public
market equivalent) is a horizon calculation
based on data compiled from private equity
and venture capital funds. Annualized net
returns.
4) Source: Capital IQ.
5) Sources: BCG (Sep 2023).
Low relative correlation with other asset classes
Private market investments, influenced by distinct factors
and dynamics, offer diversification and risk mitigation.
5 years
15%
+14%
21%
10 years
14%
+13%
21%
Outlook for the private markets industry
Private markets have experienced strong growth in AUM
in recent years. The market is expected to grow further,
supported by increased investment allocations as institutional
and individual investors seek to invest in private markets.
0
3
6
9
12
15
2030E2026E2023E
~$8T
~$10T
~$14T
+9%
EQT Private Equity1)
Private Equity Index3)
MSCI World Index
(Equities)4)
8%7%
Annualized returns comparison Private markets AUM development5)
excl. credit and hedge funds
EQT Annual and Sustainability Report 2023 / Page 17Private markets and EQT
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
The private ownership model 16
Private markets are set for
structural growth 17
EQT and its clients 18
Strengthening relationships with
the private wealth segment 20
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 19 =====
EQT and its clients
EQT is dedicated to being a long-term partner for its clients. It is focused on strengthening its
client relationships, presenting compelling investment opportunities, and expanding access to
its funds. Additionally, EQT is committed to introducing new strategies and successor funds.
Clients invest to meet long-term return targets
EQT’s clients include pension funds investing capital to meet
future pension obligations, sovereign wealth funds responsi -
ble for its citizens’ savings, and families managing wealth for
future generations. EQT is also growing its partnership with
private clients, families, insurance companies, endowments,
and foundations.
A diversified client base
EQT has over 1,200 clients invested in active EQT funds. Since
2019, the number of clients has tripled. No individual client
represents more than 5 percent of EQT’s committed capital.
Commitments by client geography
Middle East
Nordics
Rest of Europe
APAC
Americas
Commitments by client type
Other
Private wealth
Insurance companies
Asset managers
Sovereign wealth funds
Pension funds
20232019
38% 41%
13%
20%
15%
11%
8%
15%
11%
8%
9%
11%
20232019
25%
32%
23%
20%
23%
26%
6%
20%
12%
13%
1) Prequin, Future of Alternatives 2028, October 2023. Excludes Private Debt.
2) Capital weighted based on commitments in EQT IX.
In 2023, the fund-
raising environment
con tinued to face
headwinds. In this
competitive environ-
ment – with global fundraising volumes1)
being down more than 25% from peak
levels in 2021 – we successfully raised
EUR 27bn, including co-investments.
Suzanne Donohoe
Chief Commercial Officer
Fundraising highlights
85%
re-ups in EQT X 2)
EUR 27bn
raised during 2023, including
co-investments
EQT Annual and Sustainability Report 2023 / Page 18Private markets and EQT
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
The private ownership model 16
Private markets are set for
structural growth 17
EQT and its clients 18
Strengthening relationships with
the private wealth segment 20
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 20 =====
In 2023, EQT leveraged its robust sustainability ambitions and
extensive global investor network to launch the EQT thinQ
Client Academy. The Academy is designed to spearhead
sustainable transformation across the private markets. Open
to all clients, the Academy aims to enhance understanding of
future-proofing topics, such as Sustainability and AI. It caters
to a wide range of investment advisory professionals, including
senior capital allocators and sustainability experts, fostering
an environment of mutual learning and leadership in sustain-
ability practices. The Academy successfully hosted its first
three events in the fall of 2023.
Successfully navigating major
thematic shifts, such as the energy
transition, demands rigorous disci-
pline to ensure these changes work
in our favor. It’s about more than just
adapting; it’s about leading and
actively shaping the change.
I firmly believe there are such
incredible opportunities for driving
lasting change. If the investor com-
munity makes a conscious choice to
discard what you might call business
as usual and embrace a new path
forward – there’s no better moment
to do that than now.
Launch of EQT thinQ Client Academy
Collaborating with clients to drive sustainable transformation
In practice
EQT thinQ Client Academy is a newly established
platform for knowledge-sharing and collabora-
tion to drive sustainable transformation in the
industry and beyond.
EQT thinQ Client Academy events 2023
Energy transition – the investment
opportunity of the century
Keynote speaker:
Francesco Starace
Lifting private markets
leadership in sustainability
Keynote speaker:
Paul Polman
Francesco Starace joined EQT Infrastructure as Partner in
2023, bringing deep experience and expertise in energy and
transition related industries. In 2023, he was also appointed
chair of the Science-Based Targets initiative.
Paul Polman is the Co-chair of EQT Future’s Mission Board
and the former CEO of Unilever. He works to mobilise busi-
ness around the UN Sustainable Development Goals and is
co-author of ‘Net Positive’.
“Impact at Scale” dinner during
the annual GIIN Impact summit
During this year’s Impact Summit organized by The
Global Impact Investing Network (GIIN), EQT hosted
its inaugural ‘Impact at Scale’ dinner, gathering 85
individuals from across the impact investing ecosystem.
During the evening, speakers and guests shared learn-
ings and insights on the pathways and friction points
for private equity in advancing impact investing. All
agreed that they are seeing asset owners increasingly
allocating pools of capital for impact products.
EQT Annual and Sustainability Report 2023 / Page 19Private markets and EQT
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
The private ownership model 16
Private markets are set for
structural growth 17
EQT and its clients 18
Strengthening relationships with
the private wealth segment 20
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 21 =====
Accelerating EQT’s
private wealth efforts
EQT has historically raised ~8% from the
private wealth segment. During 2023,
EQT accelerated its efforts with private
wealth. Both through its close-ended
funds and through the launch of two
semi-liquid funds, EQT Nexus and EQRT.
EQT Nexus provides access to a diversi-
fied portfolio of EQT’s funds, and EQRT
focuses on direct investments in commer-
cial real estate.
Strengthening relationships with
the private wealth segment
Private wealth represents half of all global wealth, but the segment is currently under allocated to private markets.
During the coming decade, private wealth’s share of global alternatives AUM is expected to grow with a CAGR of 12%.
Private markets investing aligns with the
demands of the private wealth segment
Private investors increasingly seek asset
classes like private equity for diversification
and risk reduction, given its lower correlation
with public markets. Many private wealth
investors also have longer investment hori-
zons, often spanning multiple generations.
The private markets industry, with its longer
investment timeframes, aligns well with
these objectives.
Individual investors have historically
faced difficulties investing in the private
markets industry, due to:
• Limited access
• Large minimum investment sizes
• Longer holding periods of more than
ten years
• Cash distributions over time, and the need
to regularly make new commitments to funds.
Increasing allocations from private investors
Bain (2023) projects that institutional capital
allocated to alternative investments will grow
8% annually over the next decade. Individual
wealth invested in alternatives, meanwhile,
is expected to grow 12% annually over that
period, albeit from a much smaller base. The
~USD 9T of new capital is expected to come
primarily from high-net-worth individuals.
Source: Bain: Why private equity is targeting individual investors (2023).
0
10
20
30
40
50
60
70
80
Private wealth investors
12%
Institutional investors
8%
All investors
9%
$26T
$61T
$22T
$47T
$4T
$13T
Estimated global alternatives AUM by investor type
2022 2023 2022–32 CAGR
+9%
+8%
+12%
Read more about EQT Nexus
EQT Annual and Sustainability Report 2023 / Page 20Private markets and EQT
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
The private ownership model 16
Private markets are set for
structural growth 17
EQT and its clients 18
Strengthening relationships with
the private wealth segment 20
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 22 =====
In May 2023, EQT launched its first fund for private investors
– EQT Nexus. With this fund, EQT broadens its investor base,
and for the first time offers individuals the opportunity to access
EQT’s wide range of strategies through one single investment.
EQT Nexus is an open-ended and
semi-liquid fund that seeks to invest in
EQT’s high-performing private markets
funds and make direct co-investments
in companies alongside these funds.
Through one single investment,
investors in EQT Nexus will get access to
a diversified EQT portfolio managed by
the same teams that have been deliver-
ing consistent returns to institutional
investors for nearly 30 years1).
EQT Nexus benefits
Easy access
A door just opened to EQT’s funds and
direct co-investments alongside EQT
funds through one single investment.
Diverse investment universe
Diversify your portfolio with invest-
ments in a wide range of growth
areas across the globe.
Long-term value
We aim to invest in and support good
companies in selected sectors with
strong future potential.
Invest with the experts
Benefit from EQT’s local approach
and expert network that select
investments.
Read more
Go private to seize new opportunities Learn more
Ready to diversify your portfolio? Our fund EQT
Nexus has a compelling strategy, spreading your
assets across various sectors and regions.…
Introducing EQT Nexus
In practice
1) Past performance of EQT funds or any underlying portfolio company is not representative of the return any investor in EQT Nexus might expect to receive.
To read more about EQT Nexus, please visit nexus.eqtgroup.com
With the launch of EQT Nexus, EQT has doubled down
on building increased brand awareness, with on-going
marketing activities to address a new client group.
EQT Annual and Sustainability Report 2023 / Page 21Private markets and EQT
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
The private ownership model 16
Private markets are set for
structural growth 17
EQT and its clients 18
Strengthening relationships with
the private wealth segment 20
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 23 =====
EQT X
Dechra
EQT Private Equity launched a recommended cash acqui-
sition for Dechra Pharmaceuticals, a UK-based global
developer, manufacturer and supplier of animal health
products. Founded 25 years ago, today Dechra has
operations in 26 countries and nearly 2,500 employees.
With medical innovation accelerating and pet owner-
ship increasing, the animal health sector is expected
to benefit from long-term growth and Dechra is well
positioned to participate in this opportunity. EQT
Private Equity plans to support Dechra by leveraging its
experience in the animal health value chain, investing in
the company’s innovative pipeline, and driving global
expansion.
04
EQT’s strategy
23 Creating the global leader in active ownership strategies
24 Strategic developments since the IPO
25 A diversified global platform
26 EQT’s long-term strategic priorities
===== SIDA 24 =====
EQT Exeter
56+28+16
17% of FAUM
Creating the global leader in active ownership strategies
EQT aims to continue to deliver strong risk-adjusted returns to further solidify its position in its existing strategies.
It is also selectively moving into adjacent complementary strategies where EQT has a clear path to success.
Private Capital
5656+20+24+20+24
55% of FAUM
Infrastructure
56+28+1
28% of FAUM
Top
3
Top
5
Top
10
The
Global
Leader
Top
3
Global position today1) Long-term ambition2)
1) Refers to USD bn raised during the past five years
- PEI 300 list.
- Infrastructure Investor, top 100. Refers to Value-add Infrastructure.
- PERE, top 100. Refers to Private Real Estate.
2) Based on capital raised.
Focus and action
To reach the long-term ambition, EQT Private Capital EU & NA
and EQT Private Capital Asia will aim to scale their strategies to
their full potential through industry leading performance and
collaboration across the global platform.
EQT Infrastruture’s ambition is to deepen its sector expertise and
value creation approach to secure infrastructure thought leader -
ship. This will enable it to scale existing and recently launched
strategies, as well as develop new strategies that serve clients
further.
EQT Exeter’s focus will be to continue fund series in the US and
Europe, achieving best-in-class performance through vertical
integration and a locals-with-locals approach, while simultane -
ously building out Asia.
Top
3
EQT Annual and Sustainability Report 2023 / Page 23Strategy
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
Creating the global leader in active
ownership strategies 23
Strategic developments
since the IPO 24
A diversified global platform 25
EQT’s key long-term strategic
priorities 26
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 25 =====
Strategic M&A
EQT is evaluating potential growth opportuni -
ties to fill white space, but the bar for M&A is
high, with cultural fit and focus on performance
being uncompromisable.
New strategies
Over time, EQT could expand its strategies
with strategies focused on specific investment
themes, geographies, or expand its ability
to support companies from early stage to
maturity.
Scale flagship funds
Based on strong performance, EQT has
continued to scale it’s flagship funds.
2018 2019 2020 2021 2022 2023
Strategic developments since the IPO
Since its IPO in 2019, EQT has developed into a firm entirely focused on active ownership strategies.
EQT has acchieved this through three main avenues.
1) Includes EQT X with fee-generating assets under
management of 21.7bn (as announced on 27 Feb 2024)
and EQT Infrastructure VI at its target fund size of EUR 20bn.
Exeter BPEA
Exited Credit
EQT Growth
Healthcare
GrowthEQT Future
EQT Active Core
Infrastructure
BPEA Mid
Market
Growth
Life Sciences
Partners
Bear Logi
Redwood
IPO
EQT VIII
Infra IV
≈ €20 bn
EQT IX
Infra IV
≈ €30 bn
EQT X
Infra IV
≈ €40 bn1)
EQT Annual and Sustainability Report 2023 / Page 24Strategy
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
Creating the global leader in active
ownership strategies 23
Strategic developments
since the IPO 24
A diversified global platform 25
EQT’s key long-term strategic
priorities 26
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 26 =====
A diversified global platform
With the combination with Exeter and BPEA (now Private Capital Asia), EQT is now a global
leader in active ownership strategies, diversified cross sectors and geographies.
Real AssetsPrivate Capital
Asia Infrastructure Real Estate
Europe and North America
13+87
EUR 17bn EUR 55bn
43+57
Growth
Private Equity
Future
Active Core
Industrial & Logistics
Value-Add
Office & Life Sciences
Residential
EUR 36bn
28+72
EUR 22bn
17+83
FAUM
EUR 130 bn
Total AUM
EUR 232 bn
Mature
Companies
Emerging
Companies
Early Stage
Technology
Early Stage
Healthcare
EQT Annual and Sustainability Report 2023 / Page 25Strategy
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
Creating the global leader in active
ownership strategies 23
Strategic developments
since the IPO 24
A diversified global platform 25
EQT’s key long-term strategic
priorities 26
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 27 =====
EQT’s long-term strategic priorities
As EQT enters its fourth decade, the focus for the next decade centers on four key areas: performance, investment strategies,
clients, and the development of a unified EQT platform. EQT remains dedicated to delivering strong performance, prioritizing
clients’ objectives, future-proofing portfolio companies, and ensuring long-term success as one EQT.
By applying all the tools in the
EQT Playbook, EQT will aim to secure
performance for its clients through
focus on thematic investing, using
functional experts, global sector
collaboration and sub-sector
expertise.
EQT will focus on growing its
flagship funds, its current and recently
launched initiatives, while selectively
launching new initiatives.
Continue to build strong and new
client relationships and distribution
partnerships, across institutional
clients and Private Wealth.
Build a world-class scalable organiza-
tion to enable EQT’s growth. Build the
most AI- literate investment organiza-
tion and retain leadership in sustain-
ability while building the EQT brand.
EQT will maintain its leadership position in Europe, grow its presence
in North America and aim to become the number one player in Asia.
EQT will selectively pursue M&A expansion to fill white space.
Performance Investment
strategies Clients One EQT
platform
EQT Annual and Sustainability Report 2023 / Page 26Strategy
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
Creating the global leader in active
ownership strategies 23
Strategic developments
since the IPO 24
A diversified global platform 25
EQT’s key long-term strategic
priorities 26
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 28 =====
BPEA VII
Coforge
EQT Private Equity Asia’s strategy exited Coforge,
a multinational Digital IT Solutions & Technology
Consulting Services provider headquarted in India.
The Company’s proprietary platforms power critical
business processes for companies in 21 countries, with
26 delivery centers across nine countries.
Ideally positioned in one of EQT’s core sectors, Tech
Services, under the ownership tenure Coforge doubled
its revenue and EBITDA, crossing USD 1 billion of revenue
in April 2023.
EQT helped strengthen Coforge’s organic growth
through enhancing its sales organization and re-aligning
its go-to-market strategy, while supporting the recruit-
ment of industry leading leadership, and executing on an
ambitious M&A agenda.
05
EQT AB – the listed entity
and revenue model
28 EQT AB – the listed entity
29 Explaining management fees and carried interest
===== SIDA 29 =====
EQT AB – the listed entity
Portfolio companies and assets
~300
portfolio
companies
2,030
current number
of buildings
Shareholders
55,000 shareholders own EQT AB,
which is listed on Nasdaq Stockholm
Board and Executive
Committee
23%
Other EQT Partners and
employees1)
29%
Other free float2)
31%
Investor AB
15%
Wallenberg Invest AB
2%
EQT Foundation
1%
EQT funds
€130bn FAUM
51 active funds
EQT AB Group
EQT’s
shareholders
own EQT AB.
Dividends
from EQT AB
to its
shareholders.
… and is allo-
cated manage-
ment fees and a
share of profits.
EQT AB Group
manages,
advises and
invests in the
EQT funds …
Fund investors,
via the funds,
provide capital
to acquire and
develop the port-
folio companies …
… and receive
returns from their
investments.
Investment management
Investment Advisory
Professionals provide
advice to the fund man-
agers with respect to
the EQT funds’ portfolio
companies as part of
EQT’s governance model.
Investment advisory
Private Capital
Real Assets
1) Lock-ups expiring 2024-2028 (not held by the Board and EQT Executive Committee).
2) Including shares held by Partners and Employees which are not subject to lock-ups.
EQT Annual and Sustainability Report 2023 / Page 28EQT AB – the listed entity and revenue model
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT AB Group – the listed entity 28
Explaining management fees and
carried interest 29
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 30 =====
FAUM drives contractual management fees with good visibility Illustrative split of revenues during the life of a fund
Explaining management fees
A typical EQT fund life can be divided into two phases, a com-
mitment period and a post-commitment period. The commit-
ment period for a fund represents the time when the relevant
EQT fund sources investments and calls on capital contributions
from the fund investors to finance the acquisition of the fund
investments. During the commitment period, the management
fee is normally calculated as a percentage of commitments to
the fund.
An EQT fund normally enters the post-commitment period at
the end of a set period of time, or once approximately 80–90
percent of total commitments are invested and a successor
fund is activated. During the post-commitment period, man-
agement fees are normally calculated on the invested capital.
As an EQT fund realizes investments, the fund’s invested capital
will decline and the management fees will therefore decline in
absolute terms, as more and more of the fund’s investments
are realized.
When fundraising has been completed, no further commit-
ments are accepted, meaning the majority of EQT funds are
normally closed-ended. Management fees typically do not
depend on underlying market valuations.
Management fee generation is supported by increasing the
size of successor funds, as well as developing and scaling new
business lines.
EQT AB Group is typically also entitled to a share of fund
profits, so-called carried interest (see next page).
• Management fees are typically based on committed capital when a fund sources new
investments and calls on capital contributions.
• During the post-commitment period, fees are typically based on invested capital, which
gradually decreases as fund investments are realized.
• Management fees grow with the capital committed in successor funds.
• Management fees are based on FAUM.
• All of EQT’s FAUM is fee-generating AUM.
• Recognition of carried interest under IFRS depends on fund profits and is only
recognized when minimum return requirements have been met.
10987654321
Management fees Carried interest
Year10987654321
Committed capital Invested capitalFund 1
Committed capitalI nvested capitalFund 2
Year
FAUM
Committed capitalFund 3
10987654321
Committed capitalI nvested capitalFund 1
Committed capital Invested capitalFund 2
Year
FAUM
Committed capitalFund 3
EQT Annual and Sustainability Report 2023 / Page 29EQT AB – the listed entity and revenue model
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT AB Group – the listed entity 28
Explaining management fees and
carried interest 29
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 31 =====
Total value at
Gross MOIC of 2.0x
200
Explaining carried interest
Carried interest aligns interests between EQT
AB Group, the Group’s Investment Advisory
Professionals and the fund investors through
profit-sharing.
EQT AB Group, the Investment Advisory
Professionals and other potential Carried
Interest Participants invest in the EQT funds
through a Special Limited Partner (SLP).
In return, the carried interest participants
are entitled to receive carried interest and
investment income.
Subject to the relevant fund’s profits
exceeding a certain minimum return to fund
investors (“hurdle rate”), typically between
6–8 percent annual return, profits are nor-
mally split 80 percent to fund investors and
20 percent to Carried Interest Recipients as
of which EQT AB Group would normally be
entitled to 35 percent of the carried interest.
The amount is variable and fully dependent
on the performance of the relevant EQT fund.
Drawn commitments
incl. fees and expenses
=112
Invested capital
100
Management fees
and expenses
Fund profits
88
Fund investors
70 (80%)
Carried interest
18 (20%)
EQT AB
EQT professionals and
certain advisors
Carried interest distribution
Split in
a typical
fund
An illustrative fund
realizes a gross return of
2.0x on invested capital.
Tested against
the hurdle
(typically 6–8%
annual return)
12
EQT AB Group to receive
35% of carried interest in
a typical fund.
6 (35%)
12 (65%)
Total value and invested capital
Management fees and expenses
Distribution of profits
If fund profits exceed
the hurdle, carried
interest is earned on
all profits.
EQT Annual and Sustainability Report 2023 / Page 30EQT AB – the listed entity and revenue model
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT AB Group – the listed entity 28
Explaining management fees and
carried interest 29
EQT Playbook 31
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 32 =====
EQT Dementia Fund
QurAlis
EQT Life Sciences, investing from the EQT Dementia Fund,
co-led an oversubscribed $88 million Series B financing
into QurAlis in December 2022.
QurAlis is a clinical-stage biotechnology company
developing breakthrough medicines for neurodegenera-
tive diseases. The company is advancing a deep pipeline
of therapeutic candidates, with its two most advanced
programs in clinical development for amyotrophic lateral
sclerosis (ALS).
QurAlis’ proprietary technologies enable them to
directly target the molecular mechanisms that underly
neurodegeneration in precisely defined patient popula-
tions. The company is pioneering this ‘precision neurol-
ogy’ approach with the aim to deliver new treatments for
patients.
06
EQT Playbook
32 EQT Playbook
Thematic investment approach:
33 Private Capital
34 EQT Infrastructure
35 EQT Exeter
36 Local-with-locals
36 House of Value Creation
37 Governance model
37 EQT Network
38 In practice: Building a connected community for
investment excellence
39 Digitalization & AI with Motherbrain
40 Sustainability
41 In practice: Net zero pathway
42 In practice: Diversity, equity and inclusion (DE&I) as a driver
of employee recruitment, engagement and retention
43 In practice: Powering cleaner mobility solutions
44 In practice: Contributing to solutions to address today’s
challenges, creating winners in tomorrow’s economy
===== SIDA 33 =====
EQT Playbook
With a thematic investment approach,
EQT funds seek to invest in high-quality
companies with growth potential in
attractive industries.
Value creation
EQT funds’ portfolio companiesSources of value creation
EQT Playbook
Guided by underlying macro trends, the EQT funds invest in good companies and
assets with a mission to help them develop into great and sustainable companies
that can prosper, under EQT funds’ ownership and beyond.
The investments develop through the implementation of strategies geared towards growth and opera-
tional excellence. Sales growth and margin expansion are achieved through geographic expansion,
new products, acquisitions and strategic re-orientation and more.
1) Average sales and EBITDA CAGR between entry and exit of realized portfolio companies, as per December 31, 2023. For EQT Private Capital EU&NA: Refers to realized assets within EQT Mid Market strategy and EQT V-VIII.
For EQT Infrastructure: Refers to realized assets within EQT Infrastructure I-III
2) Weighted sales and EBITDA CAGR between entry and exit of realized portfolio companies, as per December 31, 2023. For BPEA Fund VI-VIII
EQT
Playbook
1
2
3
45
6
7
Private Capital
EU & NA
Private Capital
EU & NA1)
Private Capital
Asia
Private Capital
Asia2)
Net IRR
Sales
CAGR
Realized
Gross MOIC
EBITDA
CAGR
EQT
Infrastructure
EQT
Infrastructure1)
EQT Exeter
16%12%
20%
19%17%
17%13%
2.5x16%
2.5x
2.7x19%
2.4x18%
Fund performance
Private Capital EQT Infrastructure
40%
55%
15%
–10%
56%
22%
17%
4%
Sales expansion
Multiple expansion
Margin expansion
Debt pay-down
EQT Annual and Sustainability Report 2023 / Page 32EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 34 =====
1 Thematic investment approach – Private Capital
EQT’s business segment Private Capital invests with a thematic approach combined with deep
sector expertise, focused on leading non-cyclical companies.
Themes
Climate & Nature
Health & Wellbeing
Access & Equality
Resilience &
Transparency
Our Connected World
Modularization
of Technology
Distributed ownership
& Decentralization
Digitalization Sustainability
Sectors and sub-sectors
Healthcare
• MedTech
• Life Science Tools/
Diagnostics
• Pharma & rel. services
• Healthcare IT
Services
• Critical capability
outsourcing
• Network Services
• Tech Services
Industrial Tech
• Automation/
Internet of Things
• Sustainability Tech
• Food Tech
Technology
• Software
• Fintech
• Consumer internet
• Digital media
Private Capital Europe
& North America
5+18+29+48+E
Industrial technology, 5%
Services, 18%
Technology, 29%
Healthcare, 48%
Private Capital Asia
7+43+8+18+24++E
Industrial technology, 7%
Services, 43%
Technology, 8%
Healthcare, 18%
Tech services, 24%
Sector split of the portfolio, by percent
invested for the active portfolio
EQT
Playbook
1
2
3
45
6
7
BPEA VIII
Indira IVF
In 2023, EQT acquired a majority stake in Indira IVF, the
largest provider of fertility services in India, having facili -
tated more than 125,000 successful pregnancies to date.
Indira IVF operates in one of the fastest growing markets
globally for assisted reproductive technology services,
driven by India’s large addressable population, low market
penetration, rising marriage age, and declining fertility
rates.
EQT will invest in Indira IVF’s R&D capabilities and technol-
ogy, while further broadening its footprint across India and
exploring expansion into neighboring markets, to make
fertility services and reproductive health more accessible
to couples.
EQT Annual and Sustainability Report 2023 / Page 33EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 35 =====
1 Thematic investment approach – EQT Infrastructure
EQT Infrastructure seeks to identify infrastructure companies that provide an essential service to society,
have long-term stable or growing underlying demand, predictable cash flows and a stable business model.
Sectors and sub-sectors
Sector split of the portfolio,
by percent invested for the
active portfolio
EQT Infrastructure
40+25+20+15+E
Digital, 40%
Energy and environment, 25%
Social, 20%
Transport, 15%
EQT
Playbook
1
2
3
45
6
7
Digital
• Fast & Reliable Connectivity
• Edge & Latency- Limitations
• Internet of Things
• Network Sharing
• Cloud Adoption
Energy & Environment
• Resource Efficiency
• Circular Economy
• Energy Transition
• Decarbonization
• Decentralization
• Electrification
Transport & Logistics
• Sustainable Supply Chains
• Accessible Mobility
• E-Commerce
• Connectivity
• Automation
Social
• Healthcare Consumerization
• Global Population
Growth
• Changing Demographics
• Health & Wellbeing
EQT Infrastructure VI
Statera
Statera is a UK-based battery
storage and flexible generation
infrastructure developer and oper-
ator with 1 gigawatt (GW) of flexible
generation in operation and under
construction, enough to power
around 750,000 homes.
Demand for stability services
and dispatchable generation from
batteries is expected to grow at
speed as a result of rapid deploy-
ment of intermittent renewable
generation and the gradual decom-
missioning of thermal capacity.
EQT Infrastructure is committed
to further investing in Statera’s
ongoing development of battery
storage and other flexible energy
projects, which is expected to play
an integral part in helping the UK
reach its net zero targets.
EQT Annual and Sustainability Report 2023 / Page 34EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 36 =====
1 Thematic investment approach – EQT Exeter
EQT Exeter acquires, develops, and manages logistics, office, life science, and residential real estate properties
that meet the changing needs of tenants based on logistical, commercial, and demographic trends.
EQT
Playbook
1
2
3
45
6
7
Sectors
EQT Exeter Industrial Value Fund VI & EQT Exeter Industrial Core-Plus Fund IV
Tripoint Logistics Center
In December 2023, EQT Exeter acquired a strategically located industrial portfolio along Interstate 5 in
the Central Valley, California. This acquisition includes four buildings, totaling 1.48 million square feet,
and boasts tenancy from Fortune 500 companies.
The portfolio’s Core-Plus component features three buildings: a cross-docked facility leased to Tesla,
and two others with blue-chip tenants. These buildings have a staggered lease rollover schedule, ensur-
ing stable occupancy.
In the Value-Add segment, there’s an opportunity to attract new tenants to the remaining building. EQT
Exeter plans immediate upgrades, such as a speculative office build-out, dock door packages, electrical
enhancements, and LED lighting, to make the property near move-in ready and boost its leasing appeal.
Industrial & Logistics
Consumption and e-commerce
growth in combination with global
supply chain expansion.
84+16
Office & Life Sciences
Repriced assets from paradigm
shifts in demand patterns and R&D
economic drivers.
2+98
Multifamily
Meds, Eds, and Tech investments in
target markets and reconfiguration
of housing demand.
3+97
Diversified
EQT Exeter’s presence in Asia
and BPEA’s Real Estate funds.
10+90
of invested capital of invested capital of invested capital of invested capital
84% 2% 3% 10%
EQT Annual and Sustainability Report 2023 / Page 35EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 37 =====
3 House of Value Creation 3
2 Local-with-locals
DigitalizationSustainability
Functional excellence
Full potential plan
Sector and sub-sector playbooks
Thematic and tailored value-creation
Talent
management G&A Fitness Best-in-class
finance
Indirect
procurement
Crisis
management
CAPEX
efficiency
EQT believes that local knowledge, local busi-
ness relationships, local presence and access
to local deal flow are all critical to securing a
competitive edge in private markets. This
approach has resulted in close, long-term
relationships between EQT, private owners
and companies.
EQT’s value creation framework includes value
creation levers, such as revenue enhancements,
management changes, pricing, cost improve-
ments and more transformational levers such as
strategic realignment and add-on acquisitions.
Since the combination with BPEA, now EQT
Private Capital Asia, the house of value creation
has now integrated learnings and best prac-
tices from across the business lines.
EQT
Playbook 3
45
6
7 2
1
EQT
Playbook 3
45
6
7 2
1
Offices in
26
countries 74
nationalities represented
EQT Annual and Sustainability Report 2023 / Page 36EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 38 =====
4 Governance model
EQT’s governance model is designed to enable
accountability, promote fast decision- making
and empower EQT funds’ portfolio companies’
CEOs, while allowing for informal free-thinking.
The model is built upon clear roles and
responsibilities for the management of the
portfolio company, its board and the EQT AB
Group. It is underpinned by a TROIKA forum
consisting of the portfolio company’s Chair-
person (typically appointed from the EQT
Network), a responsible advisory partner at
EQT and the portfolio company’s CEO. The
TROIKA is a sparring partner to the CEO and
keeps EQT well-informed of the performance
in the portfolio company.
EQT
Playbook 3
45
6
7 2
1
5 EQT Network
Since its foundation, EQT has built a global
network of advisors with a variety of back-
grounds, including entrepreneurs and current
or former executives of major international
corporations. Many of these relationships
have evolved from EQT’s connection to the
Wallenberg sphere and its global network
that spans across industries and sectors. The
advisors in the EQT Network add operational
and strategic expertise and experience to the
EQT funds’ portfolio companies.
EQT
Playbook 3
45
6
7 2
1
TROIKA
Portfolio
company
CEO
Chair-
person of
the Board
EQT
Advisory
represen -
tative
Read more
Unlocking value through the EQT Network
Conni Jonsson, EQT's founder & Chairperson, and Jean
Salata, Founder & Head of BPEA (now EQT Private Capital
Asia) and Chairperson of EQT Asia, discuss the role of the
chair during a panel debate hosted at the EQT Asia
Pacific Chairperson & Senior Advisor Conference.
EQT Annual and Sustainability Report 2023 / Page 37EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 39 =====
Unlocking value through the EQT Network
Building a connected community for investment excellence
The EQT Network keeps EQT ahead of the curve by ensuring that the investment advisory teams and portfolio
ompanies have access to the best talent, both during due diligence, as well as during the value creation phase.
In practice
EQT
Playbook 3
45
6
7 2
1
Digitalizing the EQT Network
The selection of Advisors for the EQT Network is guided
by EQT’s fundamental investing principles; a local-with-
locals approach, investing thematically into future-
proofed sectors. The Network is composed of Advisors
with a wide array of functional, geographic and sub-sec-
tor expertise. To maximize the impact of the Network, EQT
has built bespoke internal systems and processes, partic-
ularly in Motherbrain, to connect the right investment
advisory professional to the right Advisor.
Further embedding portfolio talent support
EQT continues to emphasize the importance of high-
performing and well-aligned management teams and
boards. External studies consistently demonstrate that the
quality of leadership talent is key to executing successful
value creation plans.
With the aim to ensure EQT has a market-leading posi-
tion in this area, EQT has built the capability to support
investment advisory professionals and portfolio compa-
nies in the setting up and running of both C-suite and
Board Member search mandates, as well as management
and board assessment processes.
Developing the wider Network during 2023
Introduced in 2021, the virtual EQT Network Forums are
further being developed as the key platform for portfolio
companies to connect and share knowledge and experi-
ences. The Forums are often co-hosted by leading indus-
try experts and in 2023, the Forums were attended by
more than 350 participants spanning Tech, Digital and
Sustainability leaders, CFOs, CHROs, and EQT Industrial
Advisors, from across the portfolio.
In 2023, EQT introduced three new topical themes:
• EQT AI Forums
• EQT Procurement Forum
• EQT Troika Forum
Advisors per region
16+56+28+E
Asia, 16%
Europe, 56%
Americas, 28%
A picture from the
client event BPEA EQT
APAC Investor Day
2023, held on 16
November 2023
in Hong Kong.
EQT Annual and Sustainability Report 2023 / Page 38EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 40 =====
6 Digitalization & AI with Motherbrain
Motherbrain – From sourcing and
due diligence to value creation
Revolutionizing the private markets industry with digital innovation,
Motherbrain stands at the forefront of a transformative era.
Launched in 2016, Motherbrain has
revolutionized early-stage tech invest-
ment sourcing. Originally a tool for
EQT Ventures, it now plays a key role in
EQT’s thematic investment approach,
enriching the entire investment pro-
cess, from sourcing to value creation,
with machine learning and AI.
Beyond tracking traditional deal
life-cycles, Motherbrain offers an
in-depth, analysis of a company’s
journey, merging data with EQT’s cor-
porate memory and advanced algo-
rithms. This innovation enables swifter,
more strategic decision-making.
In 2023, Motherbrain expanded
across EQT’s business lines, broaden-
ing access to its insights and capabili-
ties, and enhancing our portfolio
approach. This expansion democra-
tized access to critical insights and the
platform’s robust capabilities, facili -
tating a more integrated and informed
approach across the entire portfolio.
The year also saw Motherbrain Labs
develop an AI-powered M&A sourcing
tool, demonstrating EQT’s ability to
leverage technology for investment
strategy.
The Motherbrain team at EQT isn’t
just using digital tools; they are pio-
neers, reshaping the digital mindset
in private equity. By leveraging the
immense power of Big Data and
Machine Learning, they’re not just
staying ahead of the curve — they
are defining it, giving EQT a cutting -
edge advantage in a rapidly evolving
industry.
Motherbrain has identified
17
investments to
EQT Ventures
EQT
Playbook 3
45
6
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1
EQT’s aim is to support the EQT
funds’ portfolio companies in
driving digital transformation and
developing them into world-class
digital leaders in their respective
industries.
To achieve this, EQT has made significant
investments in its own digital teams, infra-
structure and capabilities. One of EQT’s
prioritized digital missions is to continu-
ously make each EQT fund an ever-smarter
buyer, owner and seller. EQT looks to apply
industry-specific and best-in-class digital
approaches and tools throughout every
stage of an EQT fund’s investment cycle,
from the sourcing of deals to the due dili-
gence of potential opportunities and the
support in improvement of the portfolio
companies.
From sourcing … ... to due diligence … ... to value creation
EQT Annual and Sustainability Report 2023 / Page 39EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 41 =====
7 Sustainability EQT
Playbook 3
45
6
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1
EQT believes that doing good is good business. This means investing in a way that aims
to maximize returns for clients while also benefiting society and the planet.
In 2023, EQT adopted a new sustainability strategy
which accelerates EQT’s commitment to future-proof-
ing EQT funds’ portfolio companies and assets, thereby
making a positive impact. The strategy is twofold, build-
ing on a set of value creation levers aiming to improve
operational sustainability and focusing on growing
revenues from sustainable products and services. In
pursuing both factors, EQT aims to make the EQT funds’
investments more resilient and, ultimately, valuable for
the long term.
Improving operational sustainability
With its nine firmwide value creation levers EQT aims to
drive operational sustainability through initiatives pro -
moting accountable leadership, equitable business prac -
tices and regenerative processes across the EQT funds’
portfolio companies and assets. EQT’s active ownership
approach enables EQT to scale successes and learnings
across the portfolio, creating impact at scale across the
EQT funds. For current status Towards our targets
The nine value creation levers1)
Improving
operational
sustainability
Growing
sustainable
revenue
streams
Future-
proofed with
premium
valuation
Growing sustainable revenue
streams
Guided by EQT’s thematic investment approach,
EQT funds invest behind sustainability trends and
target high-quality companies, aiming to grow
sustainable revenue streams such as promoting
products and services that contribute to a green
economy or improve health and well-being.
EQT recognizes the increasing expectations of
transparency while regulators sharpen their defini-
tions of what is to be considered sustainable. EQT is
piloting a methodology to enable the identification
and growth of sustainable revenue streams, initially
targeting the sustainability themes below:
• Climate and nature
• Health and well-being
Read more about the integration of sustainability the investment and value creation process in
Sustainability notes EQT’s Responsible Investment & Ownership Policy
1) Performance against these levers is currently monitored for EQT funds’ portfolio companies within EQT Private Equity, EQT Future, EQT Infrastructure and BPEA VII-VIII, i.e. the investment strategies where EQT funds typically have control or co-control.
For EQT Exeter’s assets, only lever 8 and 9 are applicable. The baseline was developed in 2023, and some KPIs still remain to be included, see ‘Towards our targets’ for current status. Tracking and measuring will continue to be a work in progress.
1 Business specific transforma -
tional KPIs
2 Sustainability champion in the
Board
3 Signatory to the UN Global
Compact principles
4 Sustainability incentives to
Board or management
Accountable leadership
5 Diversity in the Boards and
C-suite with maximum 60%
of the same gender, cultural
background, and socio-
economic origin
6 Gender balance in the top 20%
earners
7 Employee engagement
Equitable business practices
8 Path to net zero
9 Renewable electricity
consumption
Regenerative processes
EQT Annual and Sustainability Report 2023 / Page 40EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 42 =====
Improving operational sustainability
Net zero pathway
EQT
Playbook 3
45
6
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1
Climate change is a global issue impacting all economies. EQT is commited to supporting the
decarbonization agenda and recognizes it’s importance to driving long-term financial performance.
EQT intends to support the EQT funds’ portfolio
companies on their net zero pathways. In prac-
tice, this means supporting the EQT funds’ port-
folio companies to develop decarbonization
targets and plans and supporting them in deliv-
ering on the plan during the ownership period.
EQT also acknowledges the importance of
addressing climate change’s physical and
transition risks and recognizes its potential to
severely impact humans, ecosystems, and the
global economy; read more in Sustainability notes.
EQT’s science-based targets (SBTs), encom-
passing both corporate operations and the
EQT funds’ portfolio companies and real estate
assets. During 2023, EQT published its Net Zero
Guidelines, describing EQT’s carbon emission
reduction plan to achieve net zero alignment
by 2040.
Read more about SBTs for EQT’s corporate operations
Towards our targets
Sustainability notes
Net zero guidelines
EQT funds’ portfolio companies1) EQT funds’ real estate assets3)
Targets 2030
100% of portfolio companies owned for at least
24 months to have own SBTs validated.
50% of portfolio companies owned for at least
24 months to be on track with their SBT plan.
2040
100% of portfolio companies owned for at least
24 months to be on track to achieve their 1.5°C
aligned decarbonization plans.
Status By the end of 2023, 60 of the EQT funds’
portfolio companies had started their SBT
journey2), wherof 32 had received validated
targets.
Targets 2030
50% of assets owned for at least 24 months to
be on track with their 1.5°C aligned decarbon-
ization plan.
2040
100% of assets owned for at least 24 months
to be on track with their 1.5°C aligned decar-
bonization plans.
Status By the end of 2023, 94%4) of the floor area of
real estate assets acquired within the reporting
year had developed decarbonization plans.
EQT targets achieving the below by 2030 and 2040:
1) Where the EQT funds’ owns at least 25% of fully diluted shares and excluding venture capital.
2) Defined as EQT funds’ portfolio companies with commitments or submissions of targets to SBTi (28) or with validated SBTs (32), including portfolio companies exited during the year. In addition, 14 portfolio companies had initiated the process to set SBTs.
3) Including floor are of real estate assets where EQT Exeter funds holds direct asset ownership, and held for at least 24 months.
4) Percentage floor area of acquisitions with 1.5 degree-aligned decarbonization plans divided by the total floor area of acquisition since Jan 1, 2023, excluding land acquisitions.In practice
EQT Annual and Sustainability Report 2023 / Page 41EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 43 =====
Improving operational sustainability
Diversity, equity and inclusion (DE&I) as a driver of
employee recruitment, engagement and retention
The technology sector typically sees high attrition rates, often leading to increased
operational costs, loss of talent, and innovation disruption. To innovate around talent
retention, EQT joined forces with six portfolio companies in India, owned by the EQT
Private Capital Asia funds, with a combined base of over 70,000 employees.
EQT
Playbook 3
45
6
7 2
1
Key insights from the study
An analysis of the portfolio company data showed
that 30-50% of women left their jobs due to family -
related reasons. Notably, the study revealed that
companies that believed they had high maternity
return rates actually saw many returning employees
leave within nine months of their return. This indi-
cated a gap in support for women transitioning
back to work. Furthermore, 5-8% of attrition was
attributed to the prolonged duration of promotions
compared to the expected timelines at the middle
management level. This disparity can impact em-
ployee motivation and a sense of fairness. Another
significant finding was a 35% reduction in women
working shifts in the 31–40 age group, underscoring
a distinct challenge in retaining female employees
within this demographic.
Driving employee value proposition through DE&I
Throughout this study, EQT Private Capital Asia has
actively supported the development of various tal-
ent retention initiatives. These include reevaluating
work-life balance policies, parental policies, career
advancement opportunities, and overall organiza-
tional culture to support diversity at all levels. The
initiatives are expected to reduce attrition, with
“The data demonstrated that
men and women stay and leave
for different reasons. Leveraging
these insights, we have rolled
out a revamped version of our
women’s leadership program
and introduced a management
growth initiative catering to top
talents across all genders.”
Chief People Officer at Straive
In practice
potential annual savings of USD 20–30m for the
portfolio companies.
These insights also point to the need for more
tailored practices that address the specific needs
of different employee groups, especially women.
In adressing these challenges at scale, EQT can
contribute to fostering a more inclusive and equi-
table workplace in the EQT funds’ portfolio com-
panies and enhance their overall organizational
effectiveness and attractiveness as an employer.
EQT Annual and Sustainability Report 2023 / Page 42EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 44 =====
Growing sustainable revenue streams
Powering cleaner mobility solutions
EQT
Playbook 3
45
6
7 2
1
In practice
Nordic Ferry Infrastructure, headquartered
in Oslo, Norway was formed in February 2022
through the combination of the two local ferry
and express boat operators, Molslinjen and
Torghatten, as well as the addition of Öre-
sundslinjen (former ForSea) in January 2023.
It is the leading pan-Nordic floating bridge oper-
ator with a well-diversified portfolio of 70 routes.
The maritime industry shifts towards sus-
tainability mandates replacing fossil-fueled
ferries with vessels powered by green energy
and electricity. In this transformation, EQT sees
good opportunities for value creation and
growth. As such, EQT Infrastructure is on a
transformation journey to create the leading
sustainable floating bridge operator. Today,
30% of the Nordic Ferry Infrastructure group
revenue is generated by low emissions con-
tracts with 50% expected to be low/zero by
2026. Going forward, EQT Infrastructure will
continue supporting the electrification and
progress fleet decarbonization plan based on
contract re-tendering in Norway and explore
new technologies in Denmark.
Additionally, EQT will continue exploring new
technologies and investing in hydrogen with a
Landmark hydrogen fuelled ferry route to be
launched end of 2025.
Read more about EQT Infrastructure Thematic investment approach
1) Compared to 2022-baseline.
Energy & Environment
Energy Transition
–40%
Reduction target in CO 2
emissions by 2030 1)
#1
Operator of the world’s
largest electric ferry
Transport & Logistics
Accessible Mobility
+110 ferries
Running across 70 routes
+25 million
Passengers transported annually
Nordic Ferry Infrastructure connects to the following EQT Infrastructure thematic themes:
EQT Annual and Sustainability Report 2023 / Page 43EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 45 =====
Growing sustainable revenue streams
Contributing to solutions to address today’s challenges,
creating winners in tomorrow’s economy
EQT
Playbook 3
45
6
7 2
1
1) Classified as an Article 9-fund under the SFDR (Sustainable Finance Disclosure Regulation). Article 9 Funds are those that have sustainable investment as its objective.
2) EQT VI first invested in Anticimex in 2012, and EQT Future invested in 2021. EQT VIII invested in SHL Medical in 2020, and EQT Future invested in 2022. EQT Future invested in Bloom in 2023.
EQT Future investments2)
SHL Medical designs and develops auto-
injector mechanisms enabling patients
to treat chronic diseases in their homes.
EQT Future invested with the aim to
enable patient autonomy, leading to a
greater adherence to treatment plans,
better overall outcomes, and a decre-
ased burden on the healthcare system.
Since the investment, SHL has reached
more than 2 million patients with its inno-
vative devices and is quickly becoming a
sustainability leader in the industry, with a
dedicated sustainability team that drives
circularity, decarbonization, and innova-
tion across SHL’s operations.
Bloom Fresh International innovates in
table grape to enhance resilience with
varieties that require fewer fungicides
and less water, reducing the agricul-
tural system’s stress and promoting
soil health. EQT Future’s impact case
focuses on promoting regenerative
agriculture practices in this sector by
planting new, more sustainable seed-
lings, reducing fungicide use,and sup-
porting soil research, using techniques
like environmental DNA testing.
Anticimex is a leading global specialist
in pest control. EQT Future invested in
2021, in order to expedite the roll-out
of a new, digital biocide-free product
called SMART by introducing a com-
prehensive employee incentive pro-
gram. EQT and Anticimex are now
actively demonstrating the benefits of
eco-friendly pest control to customers
and the wider market to promote and
accelerate the adoption of similar
nature-positive solutions across the
industry.
Launched in 2021, EQT Future1)
is a lighthouse, impact-driven
strategy that focuses on mature
companies with market-shaping
impact potential. EQT Future
combines EQT’s private equity
expertise with rigorious impact
measurement and management
tools, including impact-linked
incentives and impact accelera-
tion plans to drive performance
and transform industries for the
better.
In practice
“With each investment, we underwrite a core impact
case that is colinear with the commercial case and then
actively support our boards and management teams to
deliver real-world results, and to evidence their impact
performance with innovative measurement techniques.”
Jen Braswell
Head of Impact, Private Capital Europe & North America
“With EQT Future, we are investing in market leaders across two themes –
Climate & Nature and Health & Well-Being - where we support them either
to scale impactful products and services, or to pivot towards those. By doing
this, we not only create more valuable companies, but we also act as a cata-
lyst for transforming their entire industry, and delivering impact at scale.”
Simon Griffiths
Partner, Head of EQT Future Advisory Team
EQT Annual and Sustainability Report 2023 / Page 44EQT Playbook
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
EQT Playbook 32
Thematic investment approach –
Private Capital 33
Thematic investment approach –
EQT Infrastructure 34
Thematic investment approach –
EQT Exeter 35
Local-with-locals 36
House of Value Creation 36
Governance model 37
EQT Network 37
Digitalization & AI with Motherbrain 39
Sustainability 40
People 45
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 46 =====
EQT Infrastructure VI
SK Shieldus
In 2023, EQT Infrastructure acquired SK Shieldus, a leading
South Korean integrated security operator. The Company
provides central monitoring and dispatch services to
680,000 commercial customers, and provides Managed
Security Service for cybersecurity monitoring.
SK Shieldus, which was EQT Infrastructure’s first invest-
ment in South Korea, leverages digital and connected
infrastructure to deliver services that make South Korean
society safer from both physical and cyber threats. SK
Shieldus will be able to leverage EQT’s sector experience
within physical and cyber security, and strong digitaliza-
tion capabilities to enable more tailored and digitized
security service offerings for its customers.
07
People
46 People at the core of EQT’s success
47 Developing people
48 Diversity, equity and inclusion as a value creation lever
49 EQT Foundation – guardian of EQT’s core values
===== SIDA 47 =====
Values
EQT’s values have fostered an organization
that consistently delivers high performance.
They influence collaboration, how EQT advises
the portfolio companies, and how EQT posi-
tively impacts the world. It is imperative that
these values continue to underpin the perfor-
mance of a global EQT.
EQT’s continued growth and success will be
enabled by a continued emphasis on humility,
collaboration, accountability and continuous
improvement. EQT believes that encouraging
people to be themselves contributes to a more
diverse and inclusive workplace where individ-
uals feel valued for who they are.
EQT’s core values apply globally with a local
flavour and are embedded in EQT’s strategic
focus, people management and development
programs. Consistently applying the same set
of values across the world reinforces EQT’s
culture, protects its ability to perform for clients
and retains its heritage, whilst embracing a
global mindset.
People at the core of EQT’s success
With the considerable growth in the number of employees and geographic
footprint in the last three years, EQT’s values are more important than ever.
Acting with integrity and
humility. Through our actions,
we show regard and gratitude
towards our stakeholders and
colleagues.
Being open and honest, with
each other as well as with
external stakeholders. We
raise issues and face reality
when difficulties arise.
Maximizing our effort and
results through collaboration.
We feel an urgency to take
action and make an impact –
everything can be improved
at all times.
Being inclusive and non-
hierarchical – everyone is
encouraged to be themselves
and is expected to speak their
mind. We all contribute to an
engaging, friendly and fun
work environment.
Being innovative and account-
able. We take risks, persevere
through challenges and learn
from our mistakes to succeed
in the long run.
Respectful High performing Entrepreneurial Transparent Informal
EQT’s five core values form the foundation of our culture
Employees per segment
37+34+29+E
Central, 37%
Real Assets, 34%
Private Capital, 29%
Employees by region
23+18+23+36+E
Americas, 23%
Asia-Pacific, 18%
Nordics, 23%
Rest of Europe, 36%
People
Number of employees (FTE+)
0
400
800
1,200
1,600
2,000
20232022202120202019
EQT has hired ahead of growth and
built a well invested platform. Hence,
hiring remained limited in 2023. Selec-
tive hiring will continue in 2024 in key
strategic areas, such as private wealth.
EQT Annual and Sustainability Report 2023 / Page 46People
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
People at the core of EQT’s success 46
Developing people 47
Diversity, equity and inclusion as
a value creation lever 48
EQT Foundation – guardian of
EQT’s core values 49
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 48 =====
EQT Academy
The EQT Academy has been at the core of
talent development for all employees over
the past decade.
It is a learning and development platform
designed to drive business impact, value
creation and individual growth.
The Academy embeds the firm’s history,
purpose, culture, values and strategy –
simply what makes EQT unique. The
Academy is organized into four pillars:
Developing people
EQT focuses on developing the highest performing individual employees, leaders
and teams to deliver superior outcomes for the EQT funds’ portfolio companies,
resulting in the best returns for EQT’s clients.
In 2023 the Academy expanded the flag-
ship program offering by introducing
EQuesT for new Partners, which provides
guidance on how to be both a successful
partner and a future EQT leader.
The expansion of the E-cademy plat-
form has continued, delivering virtual
and hybrid programs. The toolset is also
available for all business lines to create,
shape and deliver specific training which
can then be leveraged across EQT.
Key areas of delivery for this year have
been onboarding, sustainability, risk/
compliance, cybersecurity and technology
enablement.
“Glocal” programs have been added
which provide quality, global content deliv-
ered locally to ensure EQT’s global work-
force is enabled with the right skills and
capabilities. This supports the ability to
scale whilst ensuring consistency and
local relevance.
E-cademy
Digital learning
focused on busi-
ness priorities,
embedded into
the daily workflow
Academy
Flagship
Courses to global
career and per-
sonal develop-
ment journey
Mentoring and coaching initiatives integrated across EQT Academy
Onboarding
Academy
on Demand
Targeted open
catalogue learn-
ing, supporting
individual and
team needs
Academy
Glocal
Global learning
programs experi-
enced locally
EQT Annual and Sustainability Report 2023 / Page 47People
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
People at the core of EQT’s success 46
Developing people 47
Diversity, equity and inclusion as
a value creation lever 48
EQT Foundation – guardian of
EQT’s core values 49
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 49 =====
Diversity, equity and inclusion
as a value creation lever
Increasing diversity to
create high-performing teams
For many years EQT has focused on increasing
the ratio of women, and we have improved gen-
der balance in boards and management, in
both EQT and across portfolio companies. While
significant progress has been made in this area,
this continues to be an important area of focus.
EQT has introduced a new global ambition to
apply a broader lens on diversity, equity and
inclusion, informing how high-performing
teams are composed, homogeneity reduced
and diversity of thought increased.
Going forward, EQT will take a more system-
atic approach to creating broader, diverse rep-
resentation across our management teams.
EQT is reframing and broadening the focus by
setting an ambition of a maximum of 60% of
team members of the same gender, cultural
background, and socio-economic origin in
our Board, C-Suite and top earners.
This global ambition will be implemented across
EQT’s business lines and the portfolio compa-
nies, taking into account geographical, cultural
and business contexts.
Strengthening DE&I capabilities
During 2023, a DE&I resource hub was devel-
oped and launched containing educational
modules and associated toolkits. The hub
enables EQTarians to build their understanding
of what DE&I means at EQT, our diversity ambi-
tions, our approach to driving change, and how
we will build diversity of thought. Everyone at
EQT should have the confidence and capability
to take action, get involved in initiatives and
drive change within DE&I.
EQT is a promoter of equal opportunity and inclusion for all employees and recognizes that multiple dimensions
of diversity are prerequisites for innovation, better decision making, talent retention, and financial performance.
EQT Annual and Sustainability Report 2023 / Page 48People
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
People at the core of EQT’s success 46
Developing people 47
Diversity, equity and inclusion as
a value creation lever 48
EQT Foundation – guardian of
EQT’s core values 49
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 50 =====
EQT Foundation – guardian of EQT’s values
Since its inception, EQT has had a multi-stakeholder approach, originating from the founding concept in 1994 of being “more than capital”.
In 2020, EQT AB solidified this commitment by becoming one of the first companies in the world to enshrine its Statement of Purpose in its
Articles of Association. In the same spirit, the EQT Foundation, owning around one percent of the shares in EQT AB, acts as a steward of the
company’s purpose, its values and its contribution to society.
A guardian of EQT’s values
The EQT Foundation complements EQT with
the purpose of pushing the frontiers of impact:
supporting entrepreneurs and scientists bring-
ing breakthough science from lab to market
and engaging with philanthopies to help
unlock their full potential. While investing in
breakthrough technologies, it also aims to aid
the uptake of investment practices that inte-
grate impact creation in company valuations.
The governing body, The EQT Foundation
Members’ Committee, comprises those Part -
ners who donated shares to establish the
foundation at the time of the IPO, and senior
employees at EQT who are nominated and
elected to join the Committee. In addition to
electing the Board of EQT Foundation and
providing input to the impact strategy of the
foundation, the committee acts as a guardian
of EQT’s values, and provides feedback to the
management of EQT. The governance mecha-
nism was created to upkeep the partnership
feeling, joint ownership, and deep caring for
the long-term development of EQT.
The committee also provides a way for EQT
to stay connected to senior leaders who have
been instrumental in building EQT, even after
they retire.
Election of ambassadors
that represent the future EQT
Being elected to the EQT Foundation Members’
Com mittee is a merit-based promotion for
senior employees based solely on how well
they adhere to EQT’s values. It also offers the
opportunity to lead investment deals on behalf
of the Foundation, which is reserved for
employees who are considered to be cultural
ambassadors. Engaging with the Foundation
enables employees to experience the Partner
role, learn about emerging technologies, and
build their investment expertise. This involve-
ment is recognized as an integral part of the
career development at EQT, providing employ-
ees with ample opportunities to work across
teams and business lines, sharing knowledge,
cultural codes, and their passion for a more
inclusive and regenerative tomorrow.
New members appointed to the EQT Foundation
Members’ Committee
This year, the EQT Foundation Members’ Committee welcomed four new senior
employees at EQT, elected based on their long-term commitment to safeguarding
the EQT values and their contribution to society. A warm welcome to Masoud
Homayoun, Alex Darden, Eric Liu, and Jean Salata.
Masoud Homayoun
Partner,
Head of Value-Add
Infrastructure
Advisory Team
Alex Darden
Partner,
Value-Add
Infra structure
Advisory Team
Eric Liu
Partner,
Head of Private Equity
North America
Advisory Team
Jean Salata
Head of EQT Private
Capital Asia and
Chair person of
EQT Asia
Stockholm New York New York Hong Kong
About EQT Foundation
EQT Foundation is the philanthropic arm of EQT, founded to safeguard the EQT values and push the
frontiers of impact. A philanthropic investor with a focus on novel and deeptech solutions for climate
and health. EQT Foundation combines catalytic capital with engagement and expertise from EQT
employees to help entrepreneurs and scientists bring breakthrough science from lab to market.
EQT Annual and Sustainability Report 2023 / Page 49People
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
People at the core of EQT’s success 46
Developing people 47
Diversity, equity and inclusion as
a value creation lever 48
EQT Foundation – guardian of
EQT’s core values 49
Financial statements 50
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 51 =====
08
Financial statements
52 Board of directors’ report
56 Consolidated financial statements with notes
91 Parent company financial statements with notes
100 Proposal for the distribution of net income
101 Signatures of the board of directors and the CEO
102 Managing risks
109 Auditor’s report
EQT Mid Market Europe
Ellab
EQT Private Equity sold Ellab to Novo Holdings, which
manages the assets and wealth of the Novo Nordisk
Foundation, one of the world’s largest philanthropic enter-
prise foundations. Ellab provides validation and monitoring
solutions and services for biotech and pharmaceutical
processes.
During ownership, Ellab shifted its customer focus towards
high-growth industries such as biotech and cell & gene
therapies. By the time of sale, Ellab served all top 20 biotech
companies and all top 40 pharmaceutical companies
globally. This resulted in Ellab tripling its revenues, EBITDA
and employee numbers, while experiencing approximately
20 percent annual organic revenue growth and completing
15 add-ons.
===== SIDA 52 =====
Contents
Board of directors’ report ......................................................................52
Financial statements ................................................................................56
Consolidated income statement ........................................................56
Consolidated statement of comprehensive income ............. 56
Consolidated balance sheet ..................................................................57
Consolidated statement of changes in equity ........................... 58
Consolidated statement of cash flows ...........................................59
Notes to the financial statements
Note 1 General information.................................................................... 60
Note 2 Accounting policies .....................................................................60
Note 3 Use of judgements and estimates .....................................64
Note 4 Operating segments ..................................................................64
Note 5 Revenue ..............................................................................................66
Note 6 Other operating expenses ..................................................... 66
Note 7 Employees, senior executives
and board of directors ..............................................................................67
Note 8 Audit fees and expenses ...........................................................73
Note 9 Financial income and expenses ..........................................73
Note 10 Income taxes ..................................................................................73
Note 11 Intangible assets ...........................................................................74
Note 12 Property, plant and equipment ..........................................75
Note 13 Accounts receivable and other current
assets ....................................................................................................................75
Note 14 Equity ..................................................................................................76
Note 15 Interest bearing liabilities ......................................................77
Note 16 Other liabilities ..............................................................................77
Note 17 Accrued expenses and prepaid income .......................77
Note 18 Financial instruments and financial risks ....................77
Note 19 Leases ..................................................................................................81
Note 20 Cash flow specifications........................................................82
Note 21 Pledged assets and contingent liabilities ....................82
Note 22 Events after the reporting period .....................................82
Note 23 Related parties .............................................................................83
Note 24 Subsidiaries .................................................................................. 84
Note 25 Earnings per share ................................................................... 88
Note 26 Business combination .............................................................88
Parent company financial statements
Parent company income statement ...................................................91
Parent company balance sheet ...........................................................92
Parent company statement of changes in equity.....................93
Parent company statement of cash flows ....................................94
Parent company notes
Note 1 Accounting policies ......................................................................95
Note 2 Revenue ..............................................................................................96
Note 3 Other operating income ..........................................................96
Note 4 Other operating expenses ..................................................... 96
Note 5 Employees and personnel expenses ............................... 96
Note 6 Audit fees and expenses ..........................................................96
Note 7 Operating leases ..........................................................................96
Note 8 Profit/loss from participations in subsidiaries ..........96
Note 9 Interest income and similar profit/loss items .............97
Note 10 Interest expense and similar profit/loss items .........97
Note 11 Income taxes ...................................................................................97
Note 12 Intangible assets ..........................................................................97
Note 13 Property, plant and equipment ..........................................97
Note 14 Participations in subsidiaries ............................................. 98
Note 15 Other securities held as non-current assets ............. 98
Note 16 Financial instruments and risk management .......... 99
Note 17 Other long-term receivables ..............................................99
Note 18 Prepaid expenses and accrued income ......................99
Note 19 Revolving credit facility .......................................................... 99
Note 20 Number of shares and quota value ...............................99
Note 21 Interest bearing liabilities ..................................................... 99
Note 22 Accrued expenses and prepaid income .....................99
Note 23 Pledged assets and contingent liabilities ................. 99
Note 24 Related parties ........................................................................... 99
Note 25 Events after the reporting period ................................... 99
Proposal for the distribution of net income ..............................100
Signatures of the Board of directors and the CEO ...............101
Managing risks ...........................................................................................102
Auditor’s report ..........................................................................................109
EQT Annual and Sustainability Report 2023 / Page 51Board of directors’ report
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 53 =====
Board of directors’ report
The Board of directors and the CEO of EQT AB (publ)
(reg. no. 556849-4180) with its registered office in Stockholm,
Sweden submit the annual report and consolidated financial
statements for the 2023 financial year.
REVENUES AND NET INCOME
Revenues for the period increased to EUR 2,084.4m (EUR 1,497.3m).
Carried interest and investment income amounted to EUR 118.4m in
2023 compared to EUR 168.8m in 2022. Adjusted revenues of EUR
2,130.8m (EUR 1,536.5m) are adjusted by removing the fair value
adjustment of acquired contractual rights to carried interest.
Impact on adjusted revenues from foreign exchange rate
differences (using fixed foreign exchange rates), amounted to
negative EUR 28.2m.
Total operating expenses during the year amounted to EUR
1,391.4m (EUR 991.2m), and is mainly driven by the build-out of
the organization as well as personnel expenses as a result of
performed acquisitions.
EBITDA increased to EUR 693.1m (EUR 506.1m) corresponding
to a margin of 33.2% (33.8%). Adjusted EBITDA amounted to EUR
1,226.4m (EUR 829.5m) corresponding to a margin of 57.6%
(54.0%). Impact on adjusted EBITDA from foreign exchange rate
differences (using fixed foreign exchange rates), amounted to
negative EUR 0.6m.
Depreciation and amortization amounted to EUR 54.1m
(EUR 43.8m), primarily related to facility lease agreements.
Amortization of acquisition related intangible assets amounted
to EUR 364.1m (EUR 153.6m) and relates to amortization of iden-
tified surplus values.
Net financial income and expenses amounted to EUR -35.5m
(EUR -45.6m). This is primarily comprised of interest expenses of
EUR -42.2m (EUR -33.9m) relating to the sustainability-linked
bonds issued by EQT AB in April 2022 and May 2021 as well as
currency translation differences.
Income taxes amounted to EUR -100.2m (EUR -86.9m).
Net income for the period from continuing operations decreased
to EUR 139.2m (EUR 176.2m). Adjustment items affecting net income
from continuing operations, including tax effects, amounted to EUR
880.2m (EUR 478.0m). Adjusted net income for the period from
continuing operations amounted to EUR 1,019.4m (EUR 654.2m).
Earnings per share for continuing operations before and after
dilution amounted to EUR 0.117 (EUR 0.171) and EUR 0.117 (EUR
0.171), respectively. Adjusted earnings per share for continuing
operations before and after dilution amounted to EUR 0.860 (EUR
0.634) and EUR 0.859 (EUR 0.634), respectively.
Adjustment items affecting EBITDA in 2023 amounted to EUR
533.4m and relates to an adjustment of revenues for fair value
step-up on acquired contractual right to carried interest, and an
adjustment of the part of the considerations subject to lock-up, inte-
gration costs as a result of performed acquisitions and the non-cash
portion of equity incentive program cost. The part of the consider-
ations subject to lock-up is treated as a personnel expense from an
accounting perspective and recorded in the income statement over
the lock-up period. Adjustment items affecting EBITDA in 2022
amounted to EUR 323.4m and related to an adjustment of revenues
for fair value step-up on acquired contractual right to carried interest
and an adjustment of the part of the considerations subject to lock-up
as well as transaction and integration costs as a result of performed
acquisitions. The part of the considerations subject to lock-up is
treated as a personnel expense from an accounting perspective and
recorded in the income statement over the lock-up period.
CASH FLOW AND FINANCIAL POSITION
Goodwill and Other intangible assets amounted to EUR 5,280.3m
(EUR 5,796.9m). The decrease of EUR 516.6m is mainly driven by
amortization and exchange rate differences.
Property, plant and equipment amounted to EUR 171.5m
(EUR 170.5m).
Financial investments increased by EUR 62.3m to EUR 730.7m
(EUR 668.4m) primarily driven by increased investments from EQT
AB Group into EQT funds.
Current assets amounted to EUR 2,899.2m (EUR 2,801.1m).
The increase was primarily driven by an increase in cash and cash
equivalents.
Cash and cash equivalents at the end of the period amounted
to EUR 1,114.0m (EUR 644.9m). Net debt amounted to EUR 886.0m
(EUR 1,355.1m in net debt).
Equity decreased to EUR 6,003.6m (EUR 6,398.7m). The
decrease is mainly explained by the, in 2023, decided dividend
(paid during 2023).
Non-current liabilities amounted to EUR 2,472.9m (EUR
2,522.9m).
Current liabilities amounted to EUR 731.8m (EUR 681.0m).
EXPECTATIONS FOR 2024
EQT will continue fundraising for its flagship funds within existing
strategies, as well as certain new strategies, whilst gradually
building its private wealth distribution channels. Having
strengthened its teams in recent years, EQT has reduced the pace of
hiring and expects primarily to make selective hires to support
growth in focus areas such as Private Wealth, and the regions of
North America and Asia. With significant capital to deploy from
recent fundraisings, EQT will continue to make thematic investments,
and drive performance across the EQT funds’ portfolio companies.
PERSONNEL
Number of full-time equivalent employees (FTE), at year-end 2023,
amounted to 1,777 (1,669). EQT has hired ahead of growth and built
a well invested platform. Hence, hiring remained limited in 2023.
SIGNIFICANT EVENTS DURING THE YEAR
Significant events and transactions
EQT Infrastructure VI, which has a target fund size of EUR 20.0bn,
was activated in December 2022. As of the date of the publication
of the Year-end Report, the fund had secured commitments of close
to EUR 14.5bn. Fundraising is set to continue well into 2024, and the
fund is expected to meet its target fund size.
Fundraising continued for EQT X. The fund reached its target
fund size of EUR 20bn.
EQT Exeter Industrial Value Fund VI held its final close at USD
4.9bn of fee-generating commitments, exceeding its target size of
USD 4.0bn.
EQT’s Annual Shareholders’ Meeting on 30 May 2023 resolved
to adopt two new incentive programs, the EQT Share Program and
the EQT Option Program. The new EQT Share Program and the
EQT Option Program replace the old EQT Share Program adopted
by the Annual Shareholders’ Meeting in 2019. The objective of the
programs is to align employees’ performance to the interest of the
shareholders, based on performance metrics tailored to EQT AB’s
strategic goals on an annual basis.
EQT Annual and Sustainability Report 2023 / Page 52Board of directors’ report
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 54 =====
EQT completed a repurchase of 1.8m shares, with the objective
of over time offsetting the dilution impact from EQT’s Incentive
Programs.
In the fourth quarter, EQT increased the number of ordinary
shares held in treasury with 59.3 million ordinary shares through
a share issuance. The new shares are expected to be delivered to
participants in EQT’s Share and Option Programs, depending on
the outcomes of the long-term programs. EQT currently holds
61,106,376 ordinary shares in treasury, which are not entitled to divi-
dends or votes at shareholders’ meetings. Excluding shares held in
treasury by EQT, there are 1,184,823,591 outstanding shares in EQT.
EQT launched its first semi-liquid fund, EQT Nexus, providing
access for individuals to a diversified portfolio of EQT’s funds. EQT
AB has in recent years made balance sheet investments which have
now been transferred to EQT Nexus to seed the fund, which starts off
with NAV of approximately EUR 350m and previously made fund
commitments of approximately EUR 700m.
In December 2022, the EU member states agreed to implement
the OECD model rules for a global minimum tax framework
(Pillar Two) for financial years commencing on or after 31
December 2023. The EQT AB Group is in scope of the Pillar Two
Rules, setting forth a minimum tax of 15 percent on income arising
in each jurisdiction where the group operates.
EQT has assessed the expected impact of Pillar Two income
taxes for 2024 and onwards. EQT estimates the Adjusted effective
tax rate (ETR) measured on Adjusted earnings before tax (EBT)
excluding carried interest and investment income to range
between 18 to 20 percent, of which Pillar Two income taxes are
estimated to account for 2 to 4 percentage points. The estimates
may however be affected by a range of factors affecting both the
underlying Adjusted ETR and the Pillar Two income taxes, including
legislative developments and local implementation.
The Swedish Tax Agency is reviewing the Swedish taxation of
certain current and former EQT employees with respect to carried
interest, and in particular whether carried interest should be taxed
as employment income. EQT understands that the review covers
carried interest related to certain EQT funds and specific years. EQT
and the relevant individuals have filed taxes based on existing case
law in the area. The final conclusion of the review is expected to
take several years.
INCENTIVE PROGRAMS
EQT 2019 Share program
The last grant of the EQT Share program (established in 2019) was
done in March 2023. Each annual grant consisted of amounts to be
converted to class C shares in EQT AB. All class C shares allotted
are subject to a three-year holding period, with no vesting condi-
tions, after which the class C shares are converted into ordinary
shares. The class C shares carry the same economic rights as
ordinary shares in the company and carry one-tenth (0.1) vote
each. During 2019, a new share issue of 8,663,490 class C shares
was carried out and subsequently repurchased for the purpose of
delivering class C shares within the scope of the share program. In
relation to the 2019 grant, 365,406 class C shares were allotted to
the participants in the beginning of 2020. In relation to the 2020
grant, 348,106 class C shares were allotted to the participants in
the beginning of 2021. In relation to the 2021 grant, 385,499 class C
shares were allotted to the participants in the beginning of 2022. In
relation to the 2022 grant, 496,056 class C shares were allotted to
the participants in the beginning of 2023.
EQT 2023 Share program
The EQT Share Program (established in 2023) consists of ordinary
shares in EQT AB. The Program is divided into five separate annual
grants, each subject to a one-year performance period and a
three-year holding period. Depending on the achievement of
certain performance targets during the performance year, an
amount may be awarded which after the performance period is
settled in the total number of outstanding shares in EQT AB that
corresponds to the amount awarded. With certain limited excep-
tions, no vesting conditions apply during the three-year holding
period. Based on the number of shares as of 31 December 2022,
the maximum dilution for the EQT Share Program is one percent
in total. EQT intends, over time, to repurchase shares to offset the
dilution related to the EQT Share Program. Performance in relation
to targets for Adjusted Revenue growth, Adjusted EBITDA margin
and a sustainability assessment has resulted in a gross share grant
level of EUR 34.1m, of which EUR 16.7m was cash cost.
EQT 2023 Option program
The EQT Option Program (established in 2023) consists of options
which upon exercise entitle the option holders to acquire ordinary
shares in EQT AB. The Program is divided into five separate annual
grants, each subject to a one-year performance period and a
three-year holding period. Depending on the achievement of
certain performance targets during the performance year, an
amount may be awarded which after the performance period is
settled in the number of options that corresponds to the amount
awarded. With certain limited exceptions, no vesting conditions
apply during the three-year holding period. The option exercise
period commences after the holding period. Based on the number
of shares as of 31 December 2022, the maximum dilution for the
EQT Option Program is four percent in total. EQT intends, over
time, to repurchase shares to offset the dilution related to the
EQT Option Program. Total grant level for EQT Option program
recognized in 2023 was EUR 24.7 m of which none was cash cost.
RELATED PARTIES
No significant related party transactions have occurred during
the period.
EVENTS AFTER THE REPORTING PERIOD
EQT introduced the new Healthcare Growth Strategy, a dedicated
healthcare buyout strategy.
On 27 February 2024, EQT announced that EQT X had reached its
hard cap with fee-generating assets under management of 21.7bn.
PARENT COMPANY
The parent company’s profit before tax amounted to SEK 5,211.3m
(SEK 2,741.8m). The increase is mainly explained by a timing effect
of dividends from subsidiaries.
THE SHARE
EQT AB’s ordinary shares are listed on Nasdaq Stockholm in the
Large Cap segment. As of 31 December 2023, there were
1,184,823,591 outstanding shares in EQT. EQT currently holds
61,106,376 ordinary shares in treasury. Including shares held in
treasury by EQT, there were 1,244,700,306 ordinary shares and
1,229,661 non-listed class C shares. Ordinary shares carry 1 vote
per share and class C shares carry 0.1 vote per share. The quota
value of the shares is SEK 0.1. See Note 14 for further information.
In addition to what is disclosed in Note 14 there are no restric-
tions on the transferability of shares due to statutory provisions,
articles of association or, as far as EQT AB is aware, in shareholders
agreements.
For information regarding changes in EQT’s share capital and
lock ups entered into, please refer to the heading “Events after
the reporting period” and “Restrictions on transferability above” .
SUSTAINABILITY
In accordance with Chapter 6, Section 11 of the Swedish Annual
Accounts Act, EQT has elected to prepare the statutory sustain-
ability report separately from the Board of directors’ report. The
scope of the statutory sustainability report is given on page 1.
EQT Annual and Sustainability Report 2023 / Page 53Board of directors’ report
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 55 =====
GUIDELINES FOR EXECUTIVE REMUNERATION
(REMUNERATION POLICY)
The guidelines for executive remuneration approved by the Annual
Shareholders’ Meeting 2023 are presented in Note 7. During 2023
there was one deviation from the remuneration guidelines, which
was resolved by the Board through the remuneration committee.
This related to a variable cash bonus payment made to EQT AB’s
Chief Commercial Officer, Suzanne Donohoe during 2023. Suzanne
Donohoe received a variable bonus without application of a
one-year measurement period, as required under the remuneration
guideline and was deemed necessary for EQT AB Group’s business
strategy, long term growth ambitions, target market development
and long-term value growth for its shareholders. No other devia-
tions from the guidelines were made during 2023. Set forth below
are the board’s proposed guidelines for executive remuneration, to
be adopted by the Annual Shareholders’ Meeting 2024.
Guidelines for executive remuneration (Remuneration Policy)
The CEO and other members of the Executive Committee (exec-
utive management) fall within the provisions of these guidelines.
To the extent a Board member conducts work for EQT, in addition
to the board work, consulting fees and other compensation for
such work may be paid. The guidelines are forward-looking, i.e.
they are applicable to remuneration agreed, and amendments to
remuneration already agreed, after adoption of the guidelines by
the Annual Shareholders’ Meeting 2024. These guidelines do not
apply to any remuneration separately decided or approved by the
shareholders’ meeting.
EQT has a clear remuneration philosophy (including for variable
cash) applicable across the whole group which also governs the
remuneration to the Executive Committee and links compensation
to the EQT AB Group’s business strategy, sustainability, long-term
interests and long-term value growth for its shareholders.
Most important is to incentivize fund performance and ensure
aligned interest with our limited partners in the EQT funds, EQT
AB’s shareholders as well as EQT’s long term approach. EQT is
a performance driven organization focused on long-term value
creation in line with our culture. Team performance and individual
performance are important – therefore we reward both. Perfor-
mance is key to our success and we award higher performance
with higher compensation.
To be able to achieve the business goals, EQT needs to be able
to attract and retain world class talent suitable for each role. To
achieve this, EQT applies market competitive total compensation.
EQT compensates locally based on geography and in line with
local practice and regulations, taking into account, to the extent
possible, the overall purpose of these guidelines.
The principles in these guidelines enable EQT AB to offer the
Executive Committee a competitive total remuneration.
For more information regarding the EQT AB Group’s business
strategy, please see EQT AB’s webpage, www.eqtgroup.com.
Share-related incentive programs
The EQT Share Program and the EQT Option Program are imple-
mented in the EQT AB Group. The programs were resolved by the
Annual Shareholders’ Meeting 2023 and are therefore excluded
from these guidelines. The EQT Option Program includes members
of the Executive Committee in EQT AB. The performance criteria
used to assess the outcome of the EQT Option Program are tied to
the individual’s current role scope and contribution to EQT’s per-
formance through value creation and future proofing, the share
price development, adding value to the wider EQT Platform as well
as impact on delivering on EQT’s sustainability ambitions. The par-
ticipants will receive employee stock options free of charge, with
an exercise period occurring during a one-month period starting
the day after the publication of EQT AB’s financial report for the
time period January - March three years after grant. Each
employee stock option entitles the participant to acquire one
ordinary share in EQT AB at a price corresponding to the price per
ordinary share as of the date of grant. The EQT Share Program,
resolved upon by the Annual Shareholders Meeting 2023. For the
EQT Share Program, the performance targets are tied to the EQT
AB Group’s financial targets, EQT’s general competitiveness, the
individual meeting or exceeding EQT’s highly set expectations on
adding value to the EQT Platform as well as impact on delivering
on EQT’s sustainability ambitions. The program includes Partners
and senior employees, members of the Executive Committee are
generally not participants of the EQT Share Program. The partici-
pants invest a variable amount (financed by EQT) in ordinary
shares after a performance year, whereupon an approximately
three-year holding period follows. The Annual Shareholders’
Meeting 2019 also resolved on an EQT Share Program, under
which no new investments in EQT AB shares are made, with
holding periods until 2026. For more information regarding the
EQT Share Program and EQT Option Program, including the cri-
teria which the outcome depends on, please see EQT AB’s remu-
neration report, available on eqtgroup.com/shareholders/.
Types of remuneration, etc.
The remuneration shall be on market terms and may consist of the
following components: fixed remuneration, variable cash remuner-
ation, pension benefits and other benefits. The shareholders’
meeting may – irrespective of these guidelines – resolve on, among
other things, share-related or share price-related remuneration.
Fixed remuneration
The fixed remuneration, i.e. base salary, should be competitive
and reflect responsibility and performance.
Variable remuneration
The satisfaction of criteria for awarding variable cash remuner-
ation, within the EQT Bonus program, shall be measured over a
period of one year. The variable cash remuneration may amount to
no more than 200 percent of the annual base salary.
The EQT Bonus program consists of a performance assessment
of the business as well as an individual performance assessment.
Important business performance factors determining the size of
the bonus is the success of the underlying business measured by
business performance in the funds (investments and exits as well
as portfolio and fund performance), business profitability, fund-
raising, sustainability as well as organizational development. The
individual performance is assessed versus agreed targets as well
as meeting, exceeding or not meeting high set individual perfor-
mance expectations for the individual in the current role.
To which extent the criteria for awarding variable cash remu-
neration has been satisfied shall be evaluated/determined when
the measurement period has ended. The remuneration committee
shall be responsible for the evaluation so far as it concerns variable
remuneration to the CEO. For variable cash remuneration to other
members of the Executive Committee, the CEO shall be responsible
for the evaluation. For financial objectives, the evaluation shall be
based on the latest financial information made public by EQT AB.
The Executive Committee partly consists of owners of EQT AB.
Owners that owned above 1.5 percent of the shares of EQT AB at
IPO or at relevant acquisition may not be comprised by the EQT
Bonus program, i.e. variable cash remuneration, nor any of the rel-
evant share-related incentive programs. Therefore, total remuner-
ation for part of the Executive Committee consists of base salary,
pension benefits and other benefits.
Pension
All members of the Executive Committee shall be covered by
defined contribution pension plans, for which pension premiums
shall be based on the members’ base salary and paid by the
company during the period of employment. For current members
of the Executive Committee pension contributions shall be based
on base salary and follow contribution levels in accordance with
local market practice, except for the application of a cap. For
EQT Annual and Sustainability Report 2023 / Page 54Board of directors’ report
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 56 =====
Sweden, this means that it shall be comparable to the old BTP-plan
with a contribution cap for base salary exceeding 40 Income base
amounts. The pension premiums shall amount to no more than 25
percent of the annual base salary.
Other benefits
Other benefits, such as insurances (health, life, travel), sports con-
tributions or occupational health services, should be payable to
the extent this is considered to be in line with market conditions in
the market concerned. Premiums and other costs relating to such
benefits may amount to no more than 25 percent of the annual
base salary. Executive Committee members who relocate for the
purposes of the position or who work in other multiple countries
may also receive such remuneration and benefits as are rea-
sonable to reflect the special circumstances associated with such
arrangements, taking into account the overall purpose of these
guidelines and alignment with the general policies and practices
within EQT AB Group applicable to cross border work.
Recommendation to invest in EQT AB shares
The Board recommends each Executive Committee member (who do
not already have such holding) to acquire, over a three-year period,
EQT AB shares or similar instruments corresponding to at least one
year’s base salary, before taxes and excluding other remuneration.
Termination of employment and terms for severance pay
for the CEO
A twelve month notice period will apply if notice is given by the CEO
or EQT AB. The CEO’s employment terms include a non-competition
clause. If used, this would entitle the employee to an additional com-
pensation corresponding to a maximum of twelve months’ salary,
however, reduced by any remuneration paid by a new employer.
Termination of employment and terms for severance pay for
senior executives
In the event of notice being given by the EQT AB Group, a notice
period of nine months applies, while in the event of notice being
given by the senior executive a period of notice of six months
applies. The senior executives’ employment terms also include a
non-competition clause. If used, this entitles the employee to an
additional compensation corresponding to a maximum of nine
months’ salary, however, reduced by any remuneration paid by a
new employer. Base salary during the notice period and severance
pay may not together exceed an amount corresponding to the
base salary for eighteen months. When termination is made by the
executive, the notice period may not exceed six months, without
any right to severance pay.
Salary and employment conditions for employees taken into
account during preparations of these guidelines
In the preparation of the Board’s proposal for these remuneration
guidelines, salary and employment conditions for employees of the
EQT AB Group have been taken into account by including infor-
mation on the employees’ total income, the components of the
remuneration and increase and growth rate over time, in the
remuneration committee’s and the Board’s basis of decision when
evaluating whether the guidelines and the limitations set out herein
are reasonable.
The decision-making process to determine, review and
implement the guidelines
The Board has established a remuneration committee. The commit-
tee’s tasks include preparing the Board’s decision to propose guide-
lines for executive remuneration. The Board shall prepare a pro-
posal for new guidelines at least every fourth year and submit it to
the shareholders’ meeting. The guidelines shall be in force until new
guidelines are adopted by the shareholders’ meeting. The remuner-
ation committee shall also monitor and evaluate programs for
variable remuneration for the Executive Committee, the application
of the guidelines for executive remuneration as well as the current
remuneration structures and compensation levels in the EQT AB
Group. The current members of the remuneration committee are
independent of EQT AB and its Executive Committee. The CEO and
other members of the Executive Committee do not participate in
the Board’s processing of and resolutions regarding remunera-
tion-related matters in so far as they are affected by such matters.
Deviation from the guidelines
The Board may temporarily resolve to deviate from the guidelines,
in whole or in part, if in a specific case there may be special cause
for the deviation and a deviation should be necessary to serve the
EQT AB Group’s business strategy, sustainability, long-term
interests and long-term value growth for its shareholders, or to
ensure the EQT AB Group’s financial viability. As set out above, the
remuneration committee’s tasks include preparing the Board’s
resolutions in remuneration-related matters. This includes any
resolutions to deviate from the guidelines.
Description of material changes to the guidelines and how the
views of shareholders’ have been taken into consideration
Compared to the guidelines previously adopted the following
material changes have been made, the guidelines have been
adjusted to ensure that suitable compensation can be provided in
case of relocations and cross-border work, which is important
considering the EQT AB Group’s global operations.
CORPORATE GOVERNANCE
EQT prepares its Corporate Governance Report as a separate
document from the statutory annual report. Please see page 145.
PROPOSAL FOR THE DISTRIBUTION OF NET INCOME
The Board of directors proposes a dividend for 2023 of SEK 3.60
per share, to be paid out in equal installments in June and
December 2024, respectively.
Holders of ordinary shares and Class C shares are equally
entitled to dividend. The dividend will be based on the number
of shares outstanding as of each record date.
Standing at the disposal (in SEK) of the annual shareholders’
meeting, in accordance with the balance sheet of EQT AB:
Share premium reserve 60,051,499,466
Profit brought forward -1,901,595,962
Net income 5,326,508,088
Total 63,476,411,592
The board proposes that, following approval of the balance sheet
of EQT AB for the financial year 2023, the annual shareholders’
meeting should distribute the earnings as follows:
Dividend to shareholders:
SEK 3.60 per share 4,265,364,9281)
Retained earnings 59,211,046,664
Total 63,476,411,592
1) Based on the number of outstanding shares at 31December 2023. The amount of the
dividend may change up until each record date.
It is the Board’s opinion that the proposed dividend is justifiable
taking into consideration the demands that the nature, scope and
risks of EQT’s operations place on the size of EQT AB’s and EQT AB
Group’s equity, and EQT AB’s and EQT AB Group’s consolidation
needs, liquidity and financial position in general.
EQT Annual and Sustainability Report 2023 / Page 55Board of directors’ report
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 57 =====
Consolidated income statement
1 January – 31 December
EUR m Note 2023 2022
Management fees 5 1,966.1 1,328.5
Carried interest and investment income 5 118.4 168.8
Total revenue 2,084.4 1,497.3
Personnel expenses 7 –705.3 –501.5
Acquisition related personnel expenses 7 –436.4 –200.8
Other operating expenses 6, 8 –249.7 –288.9
Total operating expenses –1,391.4 –991.2
Operating profit before depreciation and amortization (EBITDA) 693.1 506.1
Depreciation and amortization 5, 11, 12 –54.1 –43.8
Amortization of acquisition related intangible assets 26 –364.1 –153.6
Operating profit (EBIT) 274.9 308.7
Net financial income and expenses 9 –35.5 –45.6
Profit before income tax 239.4 263.1
Income taxes 10 –100.2 –86.9
Net income for the period from continuing operations 139.2 176.2
Net income for the period from discontinued operations –9.3 0.1
Net income 129.9 176.3
Attributable to:
Owners of the parent company 129.9 176.3
Non-controlling interests – –
129.9 176.3
Earnings per share, EUR 25
before dilution 0.110 0.171
of which continued operations 0.117 0.171
after dilution 0.109 0.171
of which continued operations 0.117 0.171
Average number of shares
before dilution 1,185,754,323 1,031,955,891
after dilution 1,186,434,306 1,032,594,481
Consolidated statement
of comprehensive income
1 January – 31 December
EUR m 2023 2022
Net income 129.9 176.3
Other comprehensive income
Items that are or may be reclassified subsequently to the income statement
Foreign operations – foreign currency translation differences net of tax –229.7 –273.1
Other comprehensive income for the period –229.7 –273.1
Total comprehensive income for the period –99.8 –96.8
Attributable to:
Owners of the parent company –99.8 –96.8
Non-controlling interests – –
–99.8 –96.8
EQT Annual and Sustainability Report 2023 / Page 56Financial statements
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 58 =====
Consolidated balance sheet
EUR m Note 31.12.2023 31.12.2022
ASSETS
Non-current assets
Goodwill 11 2,132.6 2,172.2
Other intangible assets 11 3,147.7 3,624.7
Property, plant and equipment 12 171.5 170.5
Financial investments 18 730.7 668.4
Other financial assets 18 16.7 40.4
Other non-current asset 5 17.8 15.2
Deferred tax assets 10 92.1 110.2
Total non-current assets 6,309.1 6,801.5
Current assets
Current tax assets 30.5 29.4
Accounts receivable and other current assets 18, 13 343.7 350.4
Accrued but yet not paid carried interest 5 896.1 915.0
Acquisition related prepaid personnel expenses 26 344.7 791.0
Other prepaid expenses and accrued income 170.2 70.4
Cash and cash equivalents 1,114.0 644.9
Total current assets 2,899.2 2,801.1
TOTAL ASSETS 9,208.3 9,602.6
EUR m Note 31.12.2023 31.12.2022
EQUITY AND LIABILITIES
Equity 14
Share capital 11.8 11.2
Other paid in capital 5,593.2 5,593.2
Reserves –450.0 –220.4
Retained earnings including net income 848.4 1,014.7
Total equity attributable to owners of the parent company 6,003.6 6,398.7
Non-controlling interest – –
Total equity 6,003.6 6,398.7
Liabilities
Non-current liabilities
Interest-bearing liabilities 15, 19 2,020.8 2,017.4
Lease liabilities 15, 19 91.2 100.1
Deferred tax liabilities 10 360.8 405.3
Total non-current liabilities 2,472.9 2,522.9
Current liabilities
Lease liabilities 15, 19 34.3 31.4
Current tax liabilities 50.6 40.4
Accounts payable 18 12.2 15.8
Other liabilities 16 114.2 94.8
Accrued expenses and prepaid income 5, 17 520.5 498.6
Total current liabilities 731.8 681.0
Total liabilities 3,204.6 3,203.9
TOTAL EQUITY AND LIABILITIES 9,208.3 9,602.6
EQT Annual and Sustainability Report 2023 / Page 57Financial statements
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 59 =====
Consolidated statement of changes in equity
Attributable to owners of the parent company
EUR m
Share
capital
Other
paid in
capital
Translation
reserve
Retained
earnings
Total
equity
Non-
controlling
interest
Total
equity
Opening balance at 1.1.2023 11.2 5,593.2 –220.4 1,014.7 6,398.7 – 6,398.7
Total comprehensive income
for the period
Net income 129.9 129.9 – 129.9
Other comprehensive income
for the period –229.7 –229.7 – –229.7
Total comprehensive income
for the period – – –229.7 129.9 –99.8 – –99.8
Transactions
with owners of the
parent company
Dividends –298.5 –298.5 – –298.5
Share issue 0.5 – 0.5 – 0.5
Cancelling of C shares –0.0 0.0 – – –
Bonus issue 0.0 –0.0 – – –
Equity incentive programs 40.6 40.6 – 40.6
Repurchase of own shares
and/or participations –38.0 –38.0 – –38.0
Total transactions with
owners of the parent
company 0.5 – – –295.8 –295.3 – –295.3
Closing balance at 31.12.2023 11.8 5,593.2 –450,0 848.4 6,003.6 – 6,003.6
Attributable to owners of the parent company
EUR m
Share
capital
Other
paid in
capital
Translation
reserve
Retained
earnings
Total
equity
Non-
controlling
interest
Total
equity
Opening balance at 1.1.2022 9.4 1,763.9 52.7 1,116.8 2,942.8 – 2,942.8
Total comprehensive income
for the period
Net income 176.3 176.3 176.3
Other comprehensive income
for the period –273.1 –273.1 –273.1
Total comprehensive income
for the period – – –273.1 176.3 –96.8 – –96.8
Transactions
with owners of the
parent company
Dividends –291.0 –291.0 –291.0
Share issues 1.8 3,829.5 3,831.3 3,831.3
Transaction cost
(net of tax) –0.1 –0.1 –0.1
Equity incentive programs 12.7 12.7 12.7
Total transactions with
owners of the parent
company 1.8 3,829.3 – –278.4 3,552.7 – 3,552.7
Closing balance at 31.12.2022 11.2 5,593.2 –220.4 1,014.7 6,398.7 – 6,398.7
EQT Annual and Sustainability Report 2023 / Page 58Financial statements
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 60 =====
Consolidated statement of cash flows
EUR m Note 2023 2022
Cash flows operating activities 20
Operating profit (EBIT), continuing operations 274.9 308.7
Adjustments:
Depreciation and amortization 418.2 197.4
Changes in fair value –22.5 –5.9
Foreign currency translation differences –15.0 –14.2
Other non-cash adjustments 479.5 213.4
Recorded, yet not paid carried interest 5 –95.8 –162.9
Paid carried interest 5 114.7 190.3
Increase (–) /decrease (+) in accounts receivable and other receivables –121.5 –96.6
Increase (+) /decrease (–) in accounts payable and other payables 17.6 18.1
Income taxes paid –105.3 –99.2
Net cash from operating activities 944.8 549.2
Cash flows investing activities
Investment in intangible assets –0.5 –0.2
Acquisition of property, plant and equipment –23.1 –30.8
Investment in financial investments –208.3 –86.6
Proceeds from disposals of financial investments 168.6 26.2
Interest received 24.3 6.7
Consideration paid net of acquired cash – –1,455.5
Final earn-out divestment Credit 11.2 –
Investment in non-current assets –11.0 –7.2
Net cash from (+) / used in (–) investing activities –38.8 –1,547.6
Cash flows financing activities
EUR m Note 2023 2022
Dividends paid –298.4 –291.0
Repayment of borrowings – –23.9
Proceeds from borrowings – 1,483.1
Payment of lease liabilities –31.6 –14.2
Interest paid –47.7 –8.7
Share issues 0.5 –0.1
Purchase of own shares and/or participations –38.0 –
Net cash from (+) / used in (–) financing activities –415.2 1,145.0
Net increase (+) / decrease (–) in cash and cash equivalents 490.8 146.7
Cash and cash equivalents at the beginning of the period 644.9 587.9
Foreign currency translation differences –21.7 –89.6
Cash and cash equivalents at the end of the period 1,114.0 644.9
EQT Annual and Sustainability Report 2023 / Page 59Financial statements
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 61 =====
Notes
Furthermore, the amendments clarify that accounting policy information
that relates to immaterial transactions, other events or conditions is
immaterial and need not be disclosed.
Other changes in IFRS that were effective from 2023 have had not
material effect on the EQT AB Group’s financial statements.
In December 2021, the members of the Organisation for Economic
Co-operation and Development (OECD)/G20 Inclusive Framework on
Base Erosion and Profit Shifting published the Pillar Two model rules
designed to address the tax challenges arising from the digitalisation of
the global economy. In December 2022, the EU member states agreed
to implement the Pillar Two model rules for a global minimum tax
framework for financial years commencing on or after 31 December
2023. EQT AB Group is in scope of the Pillar Two Rules, setting forth a
minimum tax of 15 percent on income arising in each jurisdiction where
the group operates.
It is unclear if the Pillar Two rules create additional temporary differ-
ences, whether to remeasure deferred taxes for the Pillar Two rules and
which tax rate to use to measure deferred taxes. In response to this
uncertainty, on 23 May 2023 and 27 June 2023, respectively, the IASB and
AASB issued amendments to IAS 12 ‘Income taxes’ introducing a man-
datory temporary exception to the requirements of IAS 12 under which
a company does not recognise or disclose information about deferred
tax assets and liabilities related to the Pillar Two rules. EQT AB Group
has applied the temporary exception.
Basis of measurement
Assets and liabilities are measured at historical cost, with the exception
of financial investments which are measured at fair value.
Use of judgments and estimates in the financial statements
Preparation of financial statements requires the use of judgment and
accounting estimates that affect the application of the EQT AB Group’s
accounting policies and the reported amounts of assets, liabilities,
income and expenses. Revisions of estimates are recognized
prospectively.
The judgments, made by the management when applying IFRS, which
may have significant effects on the financial statements and estimates
that may contribute to significant adjustments in the financial statements
of the following financial year are described in Note 3 Use of judgments
and estimates.
STANDARDS ISSUED BUT NOT YET EFFECTIVE
New or revised standards and interpretations issued by the IASB and the
IFRS Interpretations Committee but not yet effective, are expected to
have an immaterial impact on the EQT AB Group’s financial statements
in the future periods of initial application.
BASIS OF CONSOLIDATION AND BUSINESS COMBINATIONS
Subsidiaries and control
Control
Subsidiaries are entities controlled directly or indirectly by EQT AB. The
EQT AB Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability
to affect those returns through its power over the entity.
From an IFRS 10 perspective EQT AB Group is considered an
investment entity.
In accordance with IFRS 10 an investment entity is an entity whose
business purpose is to invest funds solely for returns from capital appreci-
ation, investment income or both and evaluate the performance of its
investments on a fair value basis. As an investment entity EQT AB Group
is exempt from consolidating subsidiaries that are investments and mea-
sures them at fair value through profit or loss instead. Subsidiaries that
serve in a supporting function such as investment services continue to be
consolidated in accordance with IFRS 10 and those that are not providing
investment services will be recognized at fair value instead of being
consolidated.
Non-consolidated special entities
According to IFRS 10 Consolidation, an investor that has control over
only specified and ring-fenced assets and liabilities within a legal entity,
should, for consolidation purposes, treat portions of the entity as a
deemed separate entity (silo). The specified assets of one silo is not
available to meet obligations of other parts of the legal entity, including
in the event of insolvency. Each silo’s assets are the only source of
payment for specified obligations of the silo. Silos that are not directly or
indirectly controlled by EQT AB are not considered to be subsidiaries and
are accordingly not consolidated. See Note 3 for further information of
significant judgments used.
Note 1 General information
EQT AB (publ), reg. no. 556849-4180, is a company domiciled in Stockholm,
Sweden with its ordinary shares listed on Nasdaq Stockholm. The visiting
address is Regeringsgatan 25, 111 53 Stockholm, Sweden. The registered
postal address is Box 16409, 103 27 Stockholm, Sweden.
The consolidated financial statements of the financial year ended as
of 31 December 2023 comprise EQT AB (“the Company”) and its direct
and indirect subsidiaries, together referred to as the ”EQT AB Group” .
Note 2 Accounting policies
BASIS OF ACCOUNTING
Compliance with legislation and standards
The consolidated financial statements have been prepared in accor-
dance with IFRS Accounting Standards (IFRS) published by the Interna-
tional Accounting Standards Board (IASB) as adopted by the EU as of
31 December 2023. Additional disclosure requirements in the Swedish
Annual Accounts Act (1995:1554) have been applied in accordance with
RFR 1 Complementary Accounting rules for groups issued by the Swedish
Financial Reporting Board.
EQT AB’s consolidated financial statements were authorized for issue
by the Board of directors and the CEO on 15 March 2024. The consoli-
dated financial statements are subject to approval by the annual share-
holders’ meeting on 27 May 2024.
ACCOUNTING POLICIES
The accounting policies applied in these consolidated financial state-
ments are the same as those applied in the annual report 2022.
The Group has adopted the amendments to IAS 1 regarding disclosure
of accounting policies. The amendments replace all instances of the term
‘significant accounting policies’ with ‘material accounting policy infor-
mation’ . Accounting policy information is material if, when considered
together with other information included in an entity’s financial state-
ments, it can reasonably be expected to influence decisions that the
primary users of general-purpose financial statements make on the
basis of those financial statements. The effect of adopting the amend-
ments has been limited as the accounting policies presented historically
and presently have been deemed as material.
EQT Annual and Sustainability Report 2023 / Page 60Notes
Contents
Download print optimized PDF
Introduction to EQT 3
Reflections on 2023 and beyond 8
Private markets and EQT 15
Strategy 22
EQT AB – the listed entity and
revenue model 27
EQT Playbook 31
People 45
Financial statements 50
Board of directors’ report 52
Consolidated financial statements
with notes 56
Parent company financial statements
with notes 91
Proposal for the distribution
of net income 100
Signatures of the board of directors
and the CEO 101
Managing risks 102
Auditor’s report 109
Sustainability notes 113
Corporate governance 144
Additional information 158
===== SIDA 62 =====