Swedish private equity firm EQT will buy British investment firm Coller Capital for $3.2 billion, the two companies said on Thursday, marking EQT’s entry into the rapidly growing secondary market.
The secondary, or secondaries, market allows investors in private equity funds and private companies to sell investments to release capital. It has grown in popularity as the global backdrop of uncertainties and higher interest rates has made it harder to exit investments.
EQT said the Coller Capital deal would be funded through newly issued ordinary shares at a set price of 355 Swedish crowns ($39.17) per share. It also said it was expected to be “mid-single-digit accretive” to its fee-related earnings.
“Secondaries have become an increasingly important tool for clients in managing liquidity and portfolio construction, and in supporting long-term ownership of high-quality assets,” EQT CEO Per Franzen said.
Coller Capital will become part of EQT and branded as “Coller EQT”. A new EQT secondaries unit will be led by Jeremy Coller, Chief Investment Officer and Managing Partner of Coller Capital.
Coller, other senior management and minority shareholders could also receive up to $500 million, based on the company’s performance through March 2029, Thursday’s statement said.
“This partnership marks a defining moment for Coller. We are bringing more than 35 years of secondaries expertise to EQT to realise our shared ambition to shape the future of private markets,” Coller said in the statement.
Coller Capital invests in the secondary market for private assets and has invested almost $18 billion in over 100 transactions, according to its website.
($1 = 9.0739 Swedish crowns)
(Reporting by Disha Mishra in Bengaluru)
