EQT's Nordic Exit: A Windfall for Private Equity and a Signal for Infrastructure Valuations?

EQT's decision to divest its Nordic broadband and data center business, GlobalConnect, for up to €8 billion ($9.43 billion) is a seismic move in the private equity world. This full-scale exit, orchestrated by Goldman Sachs, underscores the growing appetite for digital infrastructure assets and signals a potential inflection point for private equity returns in the sector. Let's break down what this means for investors and the broader market.

A Strategic Exit with Strong Returns

EQT acquired a majority stake in GlobalConnect in 2017, betting on the Nordic region's robust fiber network and its position as a hub for digital transformation. Now, with the business operating a 244,000 km fiber network and serving over 907,000 residential and 30,000 business clients, the €8 billion valuation represents a staggering return on a multi-year hold. While the exact initial investment remains undisclosed, the scale of the exit suggests a multi-digit internal rate of return (IRR), assuming a typical 5–7 year hold period. This aligns with private equity's playbook of leveraging operational improvements and macro trends—like the surge in cloud computing and AI—to drive value.

The transaction also highlights the strategic advantage of full divestitures over partial sales. By selling the entire business rather than spinning off parts (e.g., data centers separately), EQT maximizes its upside and avoids the complexities of managing a fragmented asset. Notably, GlobalConnect had previously explored selling its data centers for DKK 4–6 billion ($584–876 million) GlobalConnect quietly looks to sell Nordic data centers^[4], but the current full-asset approach appears more lucrative.

A Bellwether for Infrastructure Valuations

The GlobalConnect sale isn't an isolated event—it's part of a broader trend. Digital infrastructure, including broadband and data centers, has become a magnet for global capital. Abu Dhabi's Mubadala reportedly mulling a minority stake in GlobalConnect Mubadala mulls to acquire stake in Nordic data centre firm^[3] reflects the international demand for these assets, particularly in regions with stable regulatory environments like the Nordics.

This aligns with sector-wide dynamics. As data traffic grows exponentially and AI adoption accelerates, infrastructure providers are positioned to capture long-term cash flows. The Nordic region, in particular, has emerged as a key player in Europe's digital ecosystem, with GlobalConnect managing over half of the region's data traffic EQT kicks off sale of Nordic broadband and data centre business^[1]. Investors are clearly pricing in these tailwinds, as evidenced by the €8 billion valuation—a 40%+ premium to initial buyout multiples in 2017.

The Bigger Picture: Private Equity's Infrastructure Play

EQT's exit also speaks to the maturation of private equity's infrastructure strategy. Historically, the sector was seen as a niche play, but today, it's a core component of many buyout funds. The GlobalConnect deal demonstrates how private equity firms can scale and optimize infrastructure assets before exiting to strategic or sovereign buyers.

Moreover, the transaction highlights the role of financial engineering. By securing a full divestiture, EQT avoids the risk of holding an asset during a potential sector slowdown. This is a prudent move given the cyclical nature of infrastructure investments, where valuations can fluctuate with interest rates and tech adoption cycles.

Conclusion: A Win for EQT and a Green Light for the Sector

EQT's GlobalConnect exit is a textbook example of private equity value creation. The €8 billion valuation not only rewards investors with strong returns but also validates the long-term potential of digital infrastructure. For the broader market, this deal serves as a green light: capital will continue to flow into assets that underpin the digital economy, especially in regions with reliable governance and growth trajectories.

As the sale progresses, eyes will be on Mubadala and other potential bidders to see if the final price exceeds initial estimates. But one thing is clear—EQT has set a new benchmark for infrastructure deals, and the private equity sector is watching closely.