EQT to acquire Exeter Property; 2020 assets under management up 45.8% YOY

EQT AB (publ) said it signed an agreement to acquire U.S.-based Exeter Property Group LLC for total consideration of $1.87 billion on a cash and debt-free basis.

About $800 million of the amount will be satisfied through the issue of new EQT shares.

Exeter owns logistics/industrial, life science/office and residential properties mainly across the U.S. and Europe. EQT will integrate Exeter into its EQT Real Assets platform, comprising EQT Infrastructure and EQT Real Estate.

CEO and Founder Ward Fitzgerald and other Exeter management shareholders will join EQT. Funds managed by TA Associates, which own about 40% of Exeter, will receive 25% in newly issued EQT ordinary shares and 75% cash. The transaction is expected to be completed in the second quarter, subject to customary closing conditions, including anti-trust and certain fund investor clearances.

The Swedish private equity firm disclosed total investments by its funds for the full-year 2020 amounted to €12.9 billion and gross fund exits reached €3.4 billion during the period, compared to €9.8 billion of total investments and €7.2 billion of gross fund exits in 2019.

EQT's assets under management rose 45.8% year over year to €52.5 billion from €36.0 billion in the year-ago period.

Adjusted total revenue stood at €762 million compared to €570 million a year earlier, while Adjusted EBITDA came in at €385 million, a 46.9% year-over-year rise from €262 million.

Adjusted net income increased 63.4% to €330 million, or 29.7 euro cents per share, from €202 million, or 17.5 euro cents per share, in the prior-year period.

Investment level in EQT's key funds as of Jan. 26 stood at 30%-35% for EQT IX and 20%-25% in EQT Infrastructure V.

EQT's board proposed a dividend of 2.40 Swedish kronor per share to be paid in two equal installments in June and December. The payout rose from the 2.20 kronor per-share dividend in 2019.

J.P. Morgan acted as financial adviser to EQT in relation to the Exeter transaction, while Kirkland & Ellis and Vinge acted as legal counsel. Berkshire Global Advisors acted as financial adviser to Exeter, and Goodwin Proctor acted as legal counsel.

As of Jan. 25, US$1 was equivalent to 8.32 Swedish kronor.