EQT Navigates Market Volatility With Strong Q1 Results

What's happening: Private equity firm EQT released its Q1 2025 earnings, reporting solid fundraising momentum and investment activity despite increasing global economic uncertainty and concerns about potential impacts from US tariff negotiations.

Why it matters:

• Market test — EQT's performance provides insight into how large private market firms are navigating heightened market volatility and geopolitical tensions

• Private vs. public — The results demonstrate how private markets can maintain resilience during periods when public markets experience sharp reactions to uncertainty

• Consolidation — Current market conditions could accelerate industry consolidation favoring large, established managers like EQT

• Diversification — EQT's global presence across Europe, North America, and Asia offers investors exposure to different markets during uncertain times

The key moves:

• Infrastructure success — EQT Infrastructure VI closed at its hard cap of €21.5 billion, significantly exceeding its €20 billion target

• Asia momentum — BPEA IX has received over $10 billion in commitments to date, progressing toward its $12.5 billion target

• Evergreen expansion — Launched EQT Nexus Infrastructure, the firm's third evergreen strategy, expanding its product offering for private wealth clients

• Exit strategy — Executed major exits including Galderma, Nord Anglia, and IFS despite market volatility, demonstrating ability to generate liquidity

By the numbers:

• Balanced activity — €4 billion in investments matched by €4 billion in exits during Q1, plus €4 billion in co-investments facilitated for clients

• Growing workforce — FTE headcount increased to 1,893, up from 1,802 in Q1 2024

• Dry powder — Maintains over €50 billion in undrawn commitments, positioning the firm to capitalize on market dislocations

• Fee-paying AUM — Reached €142 billion, up from €132 billion in Q1 2024, providing stable management fee revenue

Key quotes:

• "We have seen cycles and uncertainty before... Unlike public markets, which react quickly and sharply to uncertainty, private markets are structurally different." — Christian Sinding

• "Today, I think EQT is better equipped than ever to manage volatility. We have learned from every cycle and continuously refined our approach." — Christian Sinding

• "We expect it will take at least until 2027 before global private market annual fundraising volumes reach the levels that we saw in 2021." — Gustav Segerberg, Head of Business Development

The wrap: 

Despite executing strongly on fundraising and exits in Q1, EQT expects the 90-day US tariff negotiation period to create elevated uncertainty with lower transaction volumes ahead. However, with a diversified global portfolio having limited direct exposure to tariffs, the firm remains well-positioned to navigate market volatility and potentially emerge stronger—as it has through previous economic cycles.