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?
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