EQT Partners AB, a Swedish private-equity firm, is in talks with investors about raising a multibillion-euro infrastructure fund as the company diversifies its products, said two people with knowledge of the matter.
The fund would invest in projects such as toll roads and bridges that are considered low risk and provide regular dividends, said the people, who asked not to be identified because the information is private.
EQT has raised more than 22 billion euros ($24 billion) since its founding in 1994 with backing from Investor AB, the investment vehicle of the Wallenberg family, according to its website. The new pool would continue Stockholm-based EQT’s expansion beyond its roots as an investor focused on growth capital and buyouts in the Nordic region. Since the financial crisis, it has expanded into credit and opened offices in the U.S. and Spain, according to its website.
The new fund probably won’t have a typical 10-year structure, with investors instead committing money for an indeterminate period, and EQT receiving profits based on revenue growth and dividends from the companies it holds, the people said. The firm already has two infrastructure pools that invest in a wider range of companies, including parking facilities and rail companies.
EQT has a limit of 6.7 billion euros for its seventh buyout fund, having received about 11 billion euros of demand, said one person. The pool, which is scheduled to complete fundraising shortly, will have a six-year investment period, and is about 40 percent larger than its 2011 predecessor, which was 4.75 billion euros, according to the company’s website.
A spokeswoman for EQT declined to comment on the latest infrastructure fund.