Private Equity House EQT Launches Innovative Longer Hold "EQT Future" Fund Targeted at ESG-Focused Companies

Just announced by Swedish #privateequity firm EQT Group is an innovative and compelling new fund it has launched, entitled “EQT Future.”  The ‘longer-hold’ fund is targeted at investments in companies that have significant #ESG impact, but where the #sustainable transition requires a longer ownership horizon.

Bridging both the ‘E’ and ‘S’ dimensions of ESG, the targeted EUR 4 Billion EQT Future fund has been designed such that up to 20% of the carried interest (a measure of fund's profits) are tied to hitting impact-related #environment and #societal goals. These include GHG #emissions using The Science Based Targets initiative (SBTi), improved employee well-being, #gender diversity and further meaningful KPIs.

While a typical P/E-backed fund requires investment 3 – 5 years (of a 10-year life of fund), the EQT Future fund will likely retain the investment for 7 – 8 years (over a c. 15-year life of fund). 

New thinking in #financialservices is paramount to drive a sustainable future. The creation of the EQT #Future fund is an exciting development from the stable of this progressive private equity firm and paves way for others following suit with equally innovative solutions to drive #sustainabledevelopment.

How can you bring more #innovation into your products and services to create positive societal and environmental impact?