Raising $1.6 billion for an Asia mid-market fund, EQT maintains its investing emphasis on India

The most recent fund that private equity firm EQT created, the BPEA EQT Mid-Market Growth Partnership (MMG Fund), has raised $1.6 billion, more than twice its original aim of $750 million.

The fund's main target areas will be Australia, Japan, India, and Southeast Asia.

The BPEA EQT Mid-Market Growth Partnership (MMG Fund), the newest fund from Swedish investment firm EQT, has raised $1.6 billion, exceeding its $750 million goal.

According to EQT's news release, the fund's main target areas will be Australia, Japan, South East Asia, and India.

The MMG strategy invests in mid-market, high-growth companies in Asia. It is an extension of EQT Private Capital Asia's large-cap buyout strategy, which focuses on mid-market control buyouts. The same investment strategy is used, with an emphasis on the services, technology, healthcare, and technology services industries.

"After over thirty years of investment in Asia, we now have a large-cap platform that is fully scaled and well-established. As a result of this expansion, we discovered that we lacked a committed funding source to fund investments in promising mid-market firms, said Jean Salata, chairman of EQT Asia and leader of the advisory group for EQT Private funding Asia.

The primary goal of the fund is to invest in Asia's rapidly expanding midmarket companies. Private marketplaces in the area are still in their infancy. In 2023, just 9% of the monies collected globally went toward funding initiatives with a concentration on Asia.

This targeted approach seeks to address this funding gap. In a statement released on May 27, EQT said, "The region is the epicentre of global growth, that will contribute 60 percent of global GDP by the end of 2024."

Over 80% of the funding in EQT's Asian large-cap buyout funds came from current investors. Most of the remaining large commitments came from investors from other EQT funds that made their first assignment to the Asian platform.

According to the firm, a significant portion of the donations came from employees. Through the fund's final closure, EQT has raised around $29 billion in total, of which $24 billion was reared for EQT X in February and $3.3 billion for EQT Future in March.