EQT AB: Strategic Positioning for Long-Term Value Creation in 2026

As the global private equity landscape evolves, EQT AB (publ) has emerged as a pivotal player, leveraging its robust fee-generating assets under management (AUM), strategic talent retention initiatives, and long-term fund performance to position itself for sustained value creation. With the firm's 2026 outlook shaped by a transformative fee structure and operational efficiency measures, investors are increasingly scrutinizing how these elements align with its 5–10-year investment horizon. This analysis evaluates EQT's strategic pillars and their implications for stakeholders ahead of its 2025 Year-end Report.

Fee-Generating AUM and the Shift to Performance-Based Incentives

EQT's financial resilience is anchored in its fee-generating AUM, which stood at €139 billion as of September 30, 2025, with total AUM reaching €267 billion. This growth, driven by strong fundraising in private equity and infrastructure strategies, has directly fueled a 10% increase in management fees during the first half of 2025. However, the firm's most significant strategic shift lies in its newly announced fee structure, effective January 2026. Under this model, management fees will be tied to fund performance, with a tiered system based on internal rate of return (IRR) thresholds. Funds achieving IRRs above 18% could see fees rise by up to 20%, while those below 12% will face reduced fees.

This performance-based approach aligns EQT's incentives with long-term value creation, addressing investor concerns about fee transparency. By linking compensation to outcomes, the firm aims to enhance accountability and demonstrate its commitment to delivering superior returns. As stated by Bloomberg, this shift also reflects EQT's broader strategy to monetize co-investment opportunities and provide quarterly performance dashboards for fund-level reporting. For investors, this model introduces variability in fee revenue but reinforces confidence in the firm's ability to adapt to market demands.

Talent Retention and Operational Efficiency

EQT's ability to sustain its growth trajectory hinges on retaining top talent, particularly in high-growth areas like infrastructure and capital raising. As of Q3 2025, the firm employed 1,941 full-time equivalents, with targeted hiring in teams critical to its expansion agenda. To maintain competitiveness, EQT has implemented operational efficiency measures and share buyback programs, ensuring an attractive compensation structure amid industry-wide talent wars. These initiatives are designed to streamline operations while preserving the agility needed to execute complex investments over extended horizons.

The firm's focus on efficiency is particularly relevant in a sector where human capital drives differentiation. By balancing cost discipline with strategic hiring, EQT aims to scale its platform without compromising execution quality-a critical factor for maintaining its position as the second-largest private equity firm globally by fundraising over the past five years. According to EQT's reports, this strategic positioning has proven resilient in competitive markets.

Long-Term Fund Performance and Alignment with 5–10-Year Horizons

EQT's long-term fund performance remains a cornerstone of its value proposition. As of mid-2025, key funds continued to perform on or above plan, with average valuations rising 1% in H1 and 3% in Q3. Strong exit activity further underscores this momentum, with €13 billion in gross fund exits during H1 2025 and €2 billion in Q3. These liquidity events not only enhance net asset value (NAV) growth but also reinforce the firm's ability to deliver consistent returns over multi-year cycles.

Fitch Ratings' recent affirmation of EQT's 'A-' credit rating with a stable outlook highlights the firm's resilience and strategic execution. Over the 2018–2025 period, EQT has demonstrated its capacity to navigate macroeconomic volatility while maintaining thematic focus areas such as digitalization and energy transition. This alignment with long-term trends positions the firm to capitalize on structural growth opportunities, even as market cycles fluctuate.

Implications for Investors

For investors with a 5–10-year horizon, EQT's strategic positioning offers both opportunities and risks. The performance-based fee structure introduces short-term revenue variability but strengthens long-term alignment with investor interests. Meanwhile, the firm's talent retention strategies and operational efficiency measures provide a buffer against industry headwinds, ensuring continuity in execution.

However, the success of these initiatives will depend on EQT's ability to maintain its fundraising momentum and deliver on IRR targets. If the firm can sustain its current performance trajectory, its fee-generating AUM and revenue growth are likely to remain robust, supporting durable returns for stakeholders.

Conclusion

EQT AB's strategic repositioning in 2026 reflects a clear commitment to long-term value creation. By integrating performance-based incentives, prioritizing talent retention, and leveraging strong fund performance, the firm is well-positioned to navigate an evolving market landscape. As the 2025 Year-end Report approaches, investors should closely monitor how these strategies translate into tangible outcomes, particularly in the context of its 5–10-year investment horizon.