The information was publicly communicated on 18 May 2018, 13:00 CET.

New York, Frankfurt and Hong Kong. 02 May 2018 – HQ Capital (“HQC”), a leading independent manager of alternative investments, announced the final closing of its global secondary fund, Auda Secondary Fund IV (“ASF IV”), and its Asia-focused secondary fund, Auda Asia Secondary Fund (“AASF”), with combined third-party capital commitments of US$674 million.

Both funds were oversubscribed, receiving significant interest from existing and select new investors from around the globe. ASF IV closed on US$503 million of capital, exceeding its original target of US$450 million, and AASF closed at its hard cap of US$250 million, surpassing its US$200 million target (inclusive of US$79 million in capital allocated by ASF IV and by Auda Asia IV, HQC’s Asia-focused platform fund).

Like its predecessor funds, ASF IV will seek to construct a globally diversified portfolio of private equity assets through a combination of traditional and non-traditional secondary market transactions. Traditional deals will typically involve the purchase of limited partner interests in buyout, growth equity, venture capital and other private funds. Non-traditional deals will generally include sponsorship of private equity fund recapitalizations; purchases of portfolios of direct company interests; and purchases of securities in a single company. AASF will employ the same market approach, investment strategy, structured investment process, and key portfolio construction guidelines as ASF IV, but will focus exclusively on Asia-based secondary transactions. Both funds will target small and mid-sized transactions, typically ranging from US$10-20 million in value.

Chris Lawrence, Managing Director at HQC, said: “The strong demand we have seen from investors demonstrates a continued high level of interest in secondaries. We believe our focus on the generally less crowded small and mid-sized transaction segment, will provide opportunities for negotiated purchases, better pricing and enhanced risk-adjusted returns for ASF IV. As the secondary market continues to grow and evolve, we look forward to applying our 29 years of experience and local market expertise in the U.S., Europe and Asia toward identifying and executing on attractive and innovative investment solutions.”

Georg Wunderlin, CEO of HQC, added: “The successful closing of ASF IV and AASF marks another milestone in our specialized strategy, manifesting our position as a leading, independent manager of alternative investments. We are proud to have earned investors’ trust and are fully committed to using our experience and global presence to find attractive niche investment opportunities.”

ASF IV and AASF are the fourth and fifth funds raised by HQC dedicated to making private equity secondary investments. HQC will draw on its global resources in managing ASF IV and AASF, with sourcing and execution of transactions led by investment professionals operating out of offices in New York, Frankfurt and Hong Kong. To date, the funds have already closed on a combined 25 transactions representing approximately US$230 million in committed capital.

HQ Capital’s limited partners include insurance companies, pension funds, financial institutions and family offices as well as high net worth individuals, endowments and foundations.

Fundraising for ASF IV and AASF is now closed. Accordingly, the foregoing text should in no way be interpreted as any form of offer or solicitation to subscribe to or make any commitments for or in respect of any securities or other interests or to engage in any other transaction.

Seeking new business opportunities is a natural part of EQT’s DNA. New initiatives typically tap into an asset class, sector or region where the EQT platform can make a difference. EQT has not yet explored the opportunities within the public setting – until now.

The core of EQT’s business model is to build strong and sustainable companies that are future-proofed for the long-run. Portfolio companies have an average increase in sales by 10%, EBITDA by 11% and number of employees by 10% – each year. EQT is also an active stakeholder within the equity capital markets, more specifically in Northern Europe, and has made 16 IPOs since inception.

As a first step to dig deeper into the opportunities that lie within publicly listed mid-market companies, Investment Advisor EQT Partners is teaming up with Zeres Capital, creating a Public Value team with both strong buyout and public market advisory experience. Fredrik Åtting, Partner at EQT Partners, will head the initiative together with Joakim Rubin, founder of Zeres Capital, who subsequently will become Partner and Investment Advisor at EQT Partners. Fredrik Åtting comments:

“Over the years, we have come across many listed mid-cap companies where we believe an active ownership approach could have unlocked their full potential. We believe this represents an opportunity for an active ownership and value creation model. Having access to the EQT network, the firm’s widespread sector expertise in addition to all the other benefits the global EQT platform offers would enable further value creation opportunities.”

Zeres Capital is an independent Stockholm-based investment firm, founded in 2013, with a history of creating value by supporting the building of robust, healthy businesses within the public market. Joakim Rubin highlights some of the aspects behind why he, together with a team of six public markets specialists, have decided to join EQT Partners:

“EQT Partners and Zeres Capital share the same philosophy when it comes to active and responsible ownership, and the importance of engaged management teams, boards and shareholders that are aligned on strategy – we believe our skills will be a great combination.”

Fredrik Åtting concludes: “The combination of a private equity mindset and a significant public market experience, will enable EQT to explore and leverage the EQT way of developing companies in a new and attractive marketplace.”

3i Group plc (“3i”) today announces the final close of the 3i European Operational Projects Fund (“3i EOPF”), with €456 million of commitments received from European and Asian investors, including a commitment of €40 million from 3i Group.

3i EOPF, which is managed by 3i’s infrastructure team, invests in operational projects across Europe, with a focus on France, the Benelux, Germany, Italy and Iberia. It targets a wide range of sub-sectors, primarily social infrastructure and transportation, but also telecoms and utilities, excluding renewable energy projects. It aims to provide long-term yield to institutional investors. The Fund has already invested and committed to invest approximately €85 million in assets across Europe.

Phil White, Managing Partner and Head of Infrastructure, 3i Investments plc, commented:

“We are delighted to announce the final close of the 3i European Operational Projects Fund at €456 million, exceeding our €400 million target. This new fund is complementary to our Infrastructure business. We received strong interest from financial institutions attracted by our pan-European platform, our track record of successful management of operational projects, and our pipeline of investment opportunities in this sector of the market.”

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Investors Overwhelmingly Approve New Partnership