EQT Private Capital Asia’s Mid-Market Growth Fund raises $1.6 billion

EQT Private Capital Asia's latest fund, the BPEA EQT Mid-Market Growth Partnership (MMG Fund), has raised $1.6 billion. This figure is more than double the initial target of $750 million.

The fund's strategy focuses on investing in high-growth mid-market companies across Asia, leveraging EQT's large-cap buyout approach. 

The focus of the MMG Fund

The MMG Fund targets sectors such as technology, healthcare, and various service sectors, emphasizing investments in India, Southeast Asia, Japan, and Australia.

According to Jean Salata, Chairman of EQT Asia and Head of the EQT Private Capital Asia advisory team, "We have been investing in Asia for the best part of three decades and now have a fully-scaled and established large-cap platform. Following this growth, we found that we no longer had a dedicated pool of capital to invest in compelling mid-market companies."

Investment strategies and achievements

The MMG Fund has already made four investments, with two in India, one in Malaysia, and one in Japan.

Nicholas Macksey, Partner at EQT Private Capital Asia, said, "The team has hit the ground running with this new fund, having made four investments to date. In a testament to the dynamism of Asia’s mid-market segment, as well as our scale and network, the pipeline is strong and we’re excited for what’s ahead." 

Aligning with EQT’s broader strategy

The MMG Fund is part of EQT's broader strategy to expand its mid-market investments across Asia, complementing its large-cap buyout strategy.

The fund leverages EQT's pan-Asian presence, with more than 100 investment professionals across eight offices. This approach is expected to capitalize on the region's growth, projected to contribute 60% of global GDP by the end of 2024.

Who are the investors?

Over 80% of the funding came from existing investors in EQT's Asian large-cap buyout funds, with significant contributions from new investors and EQT's own employees.

The final close of the fund has brought EQT's total fundraising for 2024 to nearly $29 billion, including $24 billion for EQT X in February and $3.3 billion for EQT Future in March.