Half Year 2024 EQT AB Earnings Call Transcript
Key Points
- EQT AB (EQBBF) concluded the fundraising of EQT 10, EQT Future, and the Asia Market Growth Fund, raising inflows of approximately EUR 7 billion.
- Fee-paying AUM increased to EUR 133 billion, with active fundraising efforts for Infrastructure VI expected to conclude this year.
- Equity revenues grew by 7% compared to the first half of last year, driven by higher management fees.
- EQT AB (EQBBF) launched several new initiatives, including a liquidity forecasting tool for investors and an AI-powered assistant for due diligence.
- The company opened new offices in Warsaw and Bangalore to drive efficiencies and support global investment teams.
- Carried interest was lower at EUR 40 million due to relatively low volumes of completed realizations.
- Realization volumes across private markets were at decade lows in 2023, impacting liquidity for clients.
- Fundraising times have continued to be extended, with realizations needing to pick up materially for improvement.
- The company expects costs to be somewhat higher in H2 due to investments in private wealth and branding efforts.
- Exit processes still face challenges with bid-ask spreads not fully converged, requiring conducive market conditions for materialization.
Good morning, everyone, and welcome to the presentation of EQT's Half Year Report 2024 for today's call. As always, if you have registered ahead of the call, you should have received an e-mail with your personal pincode to participate in the Q&A.
Next slide, please.
Let me start by summarizing the key highlights for the first half of the year. We concluded the fundraising of EQT 10, at hard cap EQT future and the Asia market grow fund at close to more than twice its target fund size across strategies. We had inflows of approximately EUR7 billion and our fee-paying AUM is now EUR133 billion. We expect active fundraising efforts for Infrastructure VI to materially conclude this year and for the fund to reach its EUR20 billion target fund size upon final close, we continue to invest at a strong pace with EUR12 billion of investments announced in the first half of the year.
When it comes to realizations, activity levels are higher than volumes may suggest at EUR4 billion. Valuations across the key firms were
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