EQT, one of the world’s largest private market investors, is intensifying its focus on Asia, calling the region a major growth engine and a hub for attractive private equity and infrastructure opportunities.
“Asia is a big growth opportunity for us… we see some of the most attractive opportunities in our pipeline in Asia,” said EQT CEO Per Franzén in an interview with CNBC. The Swedish private equity giant noted that an increasing number of investors worldwide are seeking to diversify their portfolios by channeling more capital into the region.
Earlier in April, EQT raised over $10 billion for its ninth Asia private equity fund, the BPEA Private Equity Fund IX, which launched in August 2024 with a $12.5 billion target. The firm also plans to invest approximately $930 million in South Korea’s enterprise software provider Douzone Bizon.
Local Presence and Structural Alpha
EQT’s Asia strategy emphasizes a strong local presence to capture what the firm calls “structural alpha opportunities”—market inefficiencies that are more prevalent in Asia compared to the U.S. and Europe. Jean-Eric Salata, EQT’s long-time Asia chair and nominee for global chairman next year, highlighted that Asia’s complexity and high entry barriers make local operations essential for sourcing deals, recruiting talent, and driving successful exits.
“The markets here are quite inefficient… so in order to capture that alpha, you really need to be on the ground,” Salata said, noting that EQT has 350 staff across Asia.
China: Early-Stage Innovation
While some global investors remain cautious about China, EQT sees significant opportunities in early-stage strategies, particularly in sectors experiencing rapid innovation and growth. Salata noted that buyout strategies in China are still maturing, but early-stage investments provide ample potential.
Domestic Demand Focus
EQT’s approach in Asia focuses on companies tied to domestic demand rather than cross-border flows, insulating assets from geopolitical risks such as U.S.-China tensions. Examples include a large hospital group in India specializing in gastrointestinal procedures, which Salata described as booming and uncorrelated to trade disputes.
Resilience Amid Interest Rate Cycles
EQT emphasizes creating an “all-weather strategy” that is not dependent on interest rate fluctuations. Franzén stated, “We certainly don’t count on interest rates coming down… it will be important that you continue to invest into your value creation capabilities.”
Salata highlighted the Nord Anglia Education acquisition, valued at $14.5 billion, noting that the company delivered $10 billion in distributions to investors even amid challenging interest rate environments.
Outlook
EQT’s increased Asia focus reflects a broader trend among private equity firms. Rival KKR also announced that half of its 2025 private equity capital returned to investors will come from Asia, illustrating the region’s growing strategic importance in global private markets.