EQT ramps up investments on Asia-Pacific mid-market plays

EQT has launched an evergreen private markets strategy focused on Asia Pacific, giving eligible individual and institutional investors access to the investment manager's regional private equity platform through a single vehicle.

EQT Nexus Asia will invest across the firm's large-cap and mid-market strategies, targeting companies in healthcare, services, technology and industrial technology across India, Korea, Japan, Greater Chine, Southeast Asia and Australia and New Zealand.

The strategy comes as Asia Pacific accounts for around 60% of the global population and economic growth but attracts less than 5% of global private equity allocations, according to EQT.

The region is also expected to account 3.2 billion of the worlds' five billion middle class consumers by 2035, providing that EQT described as a strong foundation for continued economic growth.

Sueann Yeo, head of global wealth solutions, Asia Pacific EQT, said the strategy was designed to broaden access to the region's private market opportunities.

"EQT Nexus Asia is designed to provide eligible individual investors and institutions access to Asia's evolving private markets landscape," Yeo said.

"Through a single evergreen strategy, investors can gain diversified exposure to EQT Private Capital's Asia platform across sectors and strategies."

EQT has invested approximately USD $50 billion across Asia since 1997 and now has more than 150 investment professionals across nine regional offices. Its Asian portfolio employs more than 270,000 people.

Hari Gopalakrishnan, co-head of EQT Private Capital Asia, said the region's demographics and domestic economies supported its long-term investment case.

"Asia stands out as one of the world's most attractive regions for long-term investment, underpinned by large domestic economies, favourable demographics and strong structural tailwinds," he said.

Nicholas Macksey, co-head of EQT Private Capital Asia and head of mid-market Asia, said the mid-market represented a significant opportunity as business sought to scale an enter new markets.

"Our active ownership approach means working closely with high-quality companies, founders and management teams on that next phase of growth, bringing the same sector expertise, governance and value creation capabilities that we apply across our broader Private Capital platform," he said.