The EQT Credit investment platform spans the full risk-reward spectrum and is currently investing three strategies: senior debt, direct lending and credit opportunities.
The EQT Credit team
The EQT Credit team, which acts as the Investment Advisor to the EQT Credit platform, was formed in 2008 and currently comprises over 20 professionals with complementary expertise in structuring and restructuring deals as well as in debt capital markets. The team has experience analyzing and investing in the European credit markets during several periods of global financial turmoil and economic stress over the last few decades. Over this time, the team has developed a highly effective sourcing network across Europe that provides EQT with access to attractive investment opportunities and ensures a strong deal pipeline. Since its inception, the EQT Credit platform has invested over EUR 3.0 billion in more than 50 companies.
The EQT Credit investment platform is currently investing three strategies:
EQT Senior Debt seeks investment opportunities in floating-rate loans and notes of strongly performing European companies. Senior Debt investments provide a regular interest income stream and high capital preservation. As a result, these investments provide an attractive diversification to a traditional fixed income portfolio.
The EQT Mid-Market Credit Fund seeks to provide flexible, long-term debt capital solutions to medium-sized European businesses, across a wide range of sectors. These businesses may be privately owned corporates seeking alternative funding to grow or be the subject of private equity-led acquisitions or refinancings.
The EQT Credit Opportunities Funds typically seek medium-term investment opportunities in operationally-sound European companies, including the debt of companies that may be facing challenges created by excess leverage levels or the need for additional capital. The Funds invest in the secondary market as well as providing primary capital directly to companies that require new funding but are unable to access traditional sources of capital.
Due diligence-led approach
All EQT Credit strategies utilize the same fundamental credit analysis and transaction “toolbox”, which has been developed since 2008. This approach is based on a rigorous due diligence-focused approach and the utilization of the knowledge available throughout EQT, including:
- Institutional knowledge gained over 20+ years of EQT investing in the equity and debt of European businesses
- Over 475 employees operating in 14 countries on three continents, providing deep local knowledge that can only be provided by having “feet on the street”
- Six industry teams providing specific-sector expertise; and
- A network of over 250 independent Industrial Advisors, who are used extensively throughout the due diligence process.
The team shares EQT’s overall industrial approach and uses the broader EQT platform to perform thorough due diligence on each investment opportunity in order to assess the relevant risks and operational sustainability of the target company. This is achieved by working in close collaboration with EQT’s independent Industrial Advisors as well as leveraging knowledge from the broader strategic sector teams to enhance the due diligence process and to access potential investment opportunities. Empirical insight from EQT’s independent Industrial Advisors can identify potential strengths and opportunities for target companies or signal difficult challenges that may make an investment imprudent.