EQT deepens Asia push as private market investors bet on regional growth

EQT, one of the world’s largest private market investors, is accelerating its expansion in Asia, calling the region a major growth engine and a source of some of the most compelling opportunities across private equity and infrastructure.

In a CNBC interview, CEO Per Franzén said the firm is seeing increasing appetite among global private market players to diversify into Asian markets.

“Asia is a big growth opportunity for us… we see some of the most attractive opportunities in our pipeline in Asia,” Franzén said.

The Swedish private equity group’s heightened focus follows a wave of capital commitments targeting the region, including the firm’s latest multi-billion-dollar fundraise.

Rising allocations and localized strategy

Earlier this year, EQT raised over $10 billion for its ninth Asia private equity vehicle, the BPEA Private Equity Fund IX, which launched in August 2024 with a $12.5 billion target.

It also plans to deploy roughly $930 million into South Korean enterprise software provider Douzone Bizon, underscoring its intention to deepen exposure to locally focused businesses.

EQT’s approach mirrors moves by other global players.

Rival KKR recently stated that around half of the private-equity capital it will return to investors this year is expected to come from Asia.

The US firm even convened its first board meeting in Tokyo, signaling the region’s importance despite its New York headquarters.

According to Jean-Eric Salata, EQT’s long-time Asia chair and incoming global chairman, the firm’s success in the region hinges on maintaining strong on-the-ground capabilities.

He described Asia’s markets as “inefficient” compared to those in the US and Europe, conditions that can generate “structural alpha opportunities” if firms have local teams that can source deals, attract talent, and execute exits effectively.

EQT currently has about 350 staff across Asia.

China’s early-stage prospects and domestic demand themes

Despite ongoing caution among global investors toward China, EQT sees the country as attractive for early-stage opportunities.

Salata said the buyout landscape remains immature, but innovation-driven growth at earlier stages is compelling.

“Where we see a lot more interesting opportunities in China is in the early stage strategies where there’s a tremendous amount of innovation… a tremendous amount of growth,” he noted.

EQT’s broader Asia strategy centers on companies tied to domestic demand, rather than those dependent on cross-border trade, which the firm says provides insulation from escalating geopolitical tensions, especially those involving the US and China.

Its portfolio includes businesses in services, software, education, and financial services.

Salata pointed to one of India’s largest gastrointestinal hospital groups, describing it as “booming” and unaffected by global trade dynamics.

Managing through interest rate cycles

Private equity exit activity in Asia-Pacific has slowed in part due to higher interest rates, according to industry observers, but EQT maintains that its investment decisions remain largely independent of monetary cycles.

Franzén said the firm is not counting on rate cuts and continues to emphasize building value creation capabilities.

Salata cited the recent acquisition of Nord Anglia Education, valued at $14.5 billion, as an example of EQT’s resilience.

He said the firm delivered $10 billion in distributions to investors from the business despite a challenging rate environment.

“If you have the right assets in the right sectors,” he said, the strategy can remain “all-weather” and less correlated to rate movements.