EQT’s Asia Buyout Fund Surges Past $10 Billion Milestone, Eyes $12.5 Billion Target Amid Market Headwinds

Stockholm, April 2025 — EQT’s Asia-focused buyout fund has defied a challenging fundraising environment, securing over $10 billion in investor commitments as of April 16, 2025, and positioning itself to surpass its $12.5 billion target. The BPEA Private Equity Fund IX, launched in August 2024, has drawn strong interest from institutional investors, signaling persistent demand for Asia-focused strategies despite geopolitical tensions and macroeconomic headwinds.

Fundraising Momentum Amid Sector-Specific Challenges

The fund’s progress comes as Asia-focused private equity fundraising fell to a 12-year low of $63.79 billion in 2024, a 29% decline from 2023, driven by U.S.-China trade disputes and lingering tariffs. EQT’s CEO, Christian Sinding, emphasized the fund’s focus on sectors “less exposed to geopolitical friction,” such as healthcare, software, and essential infrastructure, as a key differentiator. “Disruption creates opportunity,” he stated, noting that the fund’s early-stage investments (0-5% deployed as of April) are designed to capitalize on undervalued assets.

Investor Appetite and Strategic Allocation

Major commitments include $150 million from the Teacher Retirement System of Texas and $100 million from the Illinois Municipal Retirement Fund, reflecting institutional confidence in EQT’s track record. The firm’s broader fundraising strength is evident in its €142 billion in fee-generating assets under management (FAUM), a 7.6% annual increase driven by BPEA IX and its €21.5 billion EQT Infrastructure VI fund. The latter surpassed its €20 billion target, a 35% jump from its predecessor, underscoring EQT’s cross-asset appeal.

Navigating Risks with “Dry Powder” and Strategy Shifts

Despite optimism, EQT acknowledges risks: slower exit activity and depressed public market valuations could pressure returns. The firm retains over €50 billion in “dry powder” to deploy across sectors like digital infrastructure and energy transition, leveraging its 30-year expertise. Meanwhile, leadership changes loom, with Per Franzén set to succeed Sinding as CEO in May 2025, signaling a transition to newer management while maintaining EQT’s cyclical resilience.

Conclusion: A Test of Strategy and Resilience

EQT’s BPEA IX is on track to become its largest Asia-focused fund and potentially the region’s biggest PE fund ever if it reaches its $14.5 billion hard cap. With $10 billion already raised and a target within reach, the fund reflects investor faith in EQT’s ability to navigate volatility. However, its success hinges on executing sector-specific strategies in a landscape where geopolitical risks persist.

The fund’s progress contrasts sharply with broader market trends—Asia PE fundraising is down 29%, yet EQT’s tailored approach and ample dry powder position it to outperform. If BPEA IX closes above $12.5 billion this year, it would mark a critical milestone for EQT’s expansion in Asia, reinforcing its standing as a leader in the region’s private equity ecosystem.

As Sinding transitions to an advisory role, the baton passes to Franzén at a pivotal moment. EQT’s ability to sustain momentum in a tougher fundraising climate will be a litmus test for its long-term strategy—and a bellwether for Asia’s PE market recovery.