Global dealmaker EQT bets big on Asia as powerful growth engine
People walk in a shopping mall in Sanlitun district in Beijing, China, on April 4, 2025.
Kevin Frayer | Getty Images News | Getty Images
EQT, one of the world’s largest private markets investors, is investing in Asia, describing the region as a major growth engine and home to some of the most intriguing opportunities across private capital and infrastructure.
“Asia is a huge growth opportunity for us… We see some of the most attractive opportunities in our pipeline in Asia,” EQT CEO Per Franzén said in an interview with CNBC. The Swedish private equity giant said more private market investors around the world are looking to diversify their portfolios and direct more money to the region.
In early April, EQT raised over $10 billion in donations For BPEA Private Equity Fund IX, the ninth Asian private equity fund launched in August 2024 with a target of $12.5 billion. The company also plans to invest Approximately 930 million dollars in South Korea’s initiative software provider Douzone Bizon.
EQT’s emphasis on the region mirrors that of other private equity players.
Rival KKR recently announced half of its 2025 private equity capital The investors who will return this year will be from Asia. Even the American company has done this. First board meeting in TokyoAlthough it is headquartered in New York.
Jean-Eric Salata, EQT’s long-time Asia president and global presidential candidate He said next year the firm’s Asia strategy depends on a strong local presence to take advantage of what he calls “structural alpha opportunities” or inefficiencies in the region, especially compared to the U.S. and Europe.
EQT has 350 employees across Asia, Salata said, adding, “The markets here are quite inefficient, more inefficient in many ways… so you really need to be on the ground and have a local presence to capture that alpha.” he said.
However, he noted that Asia’s complexity and relatively high barriers to entry make it imperative to operate locally in terms of sourcing, hiring talent and increasing exits.
China: A bright spot for early-stage deals?
While many global private equity investors remain cautious about China, EQT sees a different opportunity emerging.
“We believe the acquisition strategy is still a little premature… The maturity of the market in China has not yet been fully achieved.” said Salad.
“Where we see much more interesting opportunities in China is in early-stage strategies where there is a tremendous amount of innovation, where there is a tremendous amount of growth.”
He added that EQT’s strategy in Asia focuses on companies that rely on domestic demand rather than cross-border flows, and that its assets in sectors such as services, software, education and financial services allow it to be more insulated from geopolitical issues such as US-China tensions.
“We have one of the largest hospital groups in India that does gastrointestinal procedures. This business is growing rapidly, and it really has nothing to do with what’s going on with trade and trade tariffs and all this complexity,” Salata said.
In 2020, China accounted for more than half of Asia-Pacific private equity transaction value, but this share fell to 27% in 2024. According to this year’s report from Bain & Company.
Additionally, while some private equity managers attribute weak outflows to higher interest rates, EQTS. and the results have been largely independent of monetary cycles.
Franzén said the firm doesn’t count on rates falling: “We certainly don’t count on interest rates falling… It will be important that you continue to invest in your value creation capabilities.”
Salata cited examples such as Nord Anglia Education, which EQT acquired with a consortium in March, valuing the international school operator. $14.5 billion.
“People want to invest more in their children’s education, especially in this part of the world and in this business, and we have provided $10 billion in distributions to our investors, again in a very challenging environment in terms of interest rates,” Salata said.
“If you have the right assets in the right sectors and add value to businesses, we are trying to create an all-weather strategy that is not about interest rates.”
