EQT beats target for second distressed fund

The Stockholm-headquartered firm garnered €845m in commitments from a broader LP base than its maiden distressed debt vehicle.

European alternatives manager EQT Partners has closed its second distressed debt fund significantly above its target, the firm confirmed yesterday.  

EQT Credit II held a final close with €845 million in commitments, comfortably exceeding its target of €750 million. Its maiden distressed debt vehicle, EQT Credit I, raised €321 million in 2010. It is fully invested.  

More than 90 percent of investors in the firm’s first credit vehicle re-upped for the sophomore fundraising, EQT said. About 55 percent of commitments to the fund came from Nordic investors, with 20 percent from the rest of Europe and 25 percent from the Americas. The LP base for EQT Credit I was predominantly Nordic, the firm said.  

Pension funds and insurers accounted for 60 percent of the committed capital, and included Access Capital Partners, Andrew W Mellon Foundation, AP4, the Finnish State Pension Fund (VER), Gamla SEB Trygg Liv, Lancashire County Pension Fund, Massena Capital Partners, OFI Asset Management, Sampo and Talanx Asset Management.

EQT Credit II will follow a similar strategy to EQT Credit I and EQT V Credit Carve-Out, a sidecar to the firm’s 2006-vintage EQT V buyout fund. It will invest primarily in stressed and distressed situations, including the debt of overleveraged businesses or those in need of additional capital.  

“The fund intends to be a medium-term investor with a bias towards Northern Europe and illiquid or mid-market situations”, EQT said in a statement.  

“The EQT Credit II fundraising is another successful development in the growth of the EQT Credit platform which has been designed to cover the full range of risk profiles and investor appetite”, said Conni Jonsson, managing partner of EQT. 

EQT’s credit arm is managed by partner Patrick de Muynck, and comprises 11 investment advisory professionals based in the firm’s London and Stockholm offices, according to its website.