Stockbridge acquisition and earn-out parameters
Q: Arnaud Giblat from BNP Paribas asked about the parameters and growth levels needed to achieve the full earn-out for Stockbridge.
A: Gustav Segerberg explained that earn-outs are tied to specific area developments rather than overall growth. Assuming a 15% to 20% growth rate from 2027 fee-related EBITDA of EUR 35 million to EUR 45 million up to 2030, fee-related EBITDA would reach around EUR 70 million, resulting in the full earn-out payout for a total purchase price of $550 million and an 8x multiple.
Exit outlook and EdgeConneX sell-down
Q: Arnaud Giblat from BNP Paribas asked which funds are related to potential exit prospects and the pace and impact of the EdgeConneX sell-down from Infra IV and Infra V into the AI infrastructure fund.
A: Per Franzén stated that exit timing is hard to predict due to market conditions, but portfolio companies are being prepared for strategic buyers or IPOs. Regarding EdgeConneX, ongoing strong value creation and investor demand will dictate how quickly exposure in Infra IV and Infra V can be reduced.
EQT XI fundraising and timeline
Q: Hubert Lam from Bank of America asked about fundraising progress for EQT XI, whether the first close would be about half the target size, and the expected timeline for closing.
A: Per Franzén noted that the first close was held this summer at around 50% of the target fund size, and fundraising will continue over the next 12 to 15 months, similar to EQT X.
Exit volume expectations and carried interest guidance
Q: Hubert Lam from Bank of America asked if lower-than-guided exit volumes change expectations around carried interest and investment income in H2 compared to H1.
A: Gustav Segerberg stated that H1 levels remain the best proxy for H2 in terms of absolute volume and the split between carry and investment income, supported by strong Q3 investment performance.
Scale-up Europe fund hard cap and evergreen inflows
Q: Ermin Keric from DNB Carnegie asked about the Scale-up Europe fund's hard cap and expectations for evergreen flows following September's acceleration.
A: Per Franzén stated that the hard cap for the Scale-up Europe fund has not been set yet, while Gustav Segerberg confirmed that previous guidance for evergreen inflows remains appropriate based on robust gross inflows.
Stockbridge margins and target margins
Q: Ermin Keric from DNB Carnegie asked whether Stockbridge's lower fee rates and FRE margins delay EQT's target margin goals for next year.
A: Gustav Segerberg acknowledged a short-term impact but confirmed that previous guidance for 2027 still holds due to business strength and fee-related performance fees.
Fundraising cycle ambition and EdgeConneX valuation
Q: Angeliki Bairaktari from JPMorgan asked if the EUR 140 billion fundraising ambition includes Stockbridge and what share of AI infrastructure fund value appreciation comes from earnings growth versus multiple appreciation.
A: Gustav Segerberg clarified that the EUR 140 billion fundraising target does not include Stockbridge, leaving a few billion of potential upside. Per Franzén added that 100% of the quarter's value creation in EdgeConneX relates to earnings and business growth without any multiple changes.
Average fee rates and EQT IX exit timing
Q: Magnus Andersson from ABG Sundal Collier asked how average fee rates will develop given new FUM in lower-fee strategies and when exits for EQT IX can be expected to meet 2028 expectations.
A: Gustav Segerberg noted that while blended fee rates are lower, overall fee-related EBITDA margins will not be negatively impacted due to lower headcount requirements. Per Franzén reiterated that EQT IX has a handful of top-performing companies preparing for IPOs and M&A processes.
Private credit strategy and U.S. real estate entry
Q: Russell Kelch from Morgan Stanley asked about the strategic case for expanding in private credit, the timing of entering U.S. real estate, and potential infrastructure secondaries expansion.
A: Per Franzén explained that EQT does not need a primary credit platform thanks to Coller Capital capabilities, and Stockbridge is a natural evolution to capture real estate alpha. Gustav Segerberg added that infrastructure secondaries are a key future focus area.
Stockbridge EBITDA CAGR and private wealth momentum
Q: Nicholas Herman from Citi asked about the assumptions behind Stockbridge's 15% to 20% EBITDA CAGR guidance and the trend of evergreen inflows.
A: Gustav Segerberg declined to detail individual CAGR components but expressed confidence in the 15% to 20% target, and noted that evergreen inflows are maintaining good momentum rather than trending downward.
Real estate margins and AI infrastructure fee rates
Q: Haley Tam from UBS asked how Stockbridge's EBITDA margin compares to existing real estate and whether platform synergies will lift overall real estate margins.
A: Gustav Segerberg stated that real estate margins are currently lower mainly due to smaller scale, and while Stockbridge margins will rise over time, they are not expected to reach firm-wide margins in the short to medium term.
EQT XI activation timing and AI infrastructure fee rate
Q: Julian Dobrovolschi from ABN AMRO-ODDO BHF asked what is holding back EQT XI activation and what the blended fee rate is for the AI infrastructure fund.
A: Per Franzén stated that EQT XI activation is dependent on completing its first investment, expected before year-end. Gustav Segerberg added that the AI infrastructure fund's fee rate remains in the lower part of the 50 to 75 basis points range.
