eQ Asset Management Raises Significant Capital for New Fund
eQ Asset Management has successfully raised an impressive USD 168 million for the eQ PE XVII US fund at the start of 2025. This endeavor marks the beginning of an exciting year for the fund as fundraising activities are set to continue throughout the year, aiming to attract even more investment.
Investment Strategy of eQ PE XVII US
The eQ PE XVII US fund primarily focuses on investing in private equity funds that engage in making equity investments in small and medium-sized businesses across the United States and Canada. With an anticipated portfolio comprising 12 to 15 funds, the strategy is designed to ensure diversification, spanning over 150 companies across various industries and regions.
Co-Investment Opportunities
In addition to its core investment strategy, the eQ PE XVII US fund will also pursue co-investment opportunities, allowing investors to participate directly in specific ventures alongside the primary fund managers. This dual approach enhances potential returns for investors while also amplifying the fund's market presence.
Successful Partnership with RCP Advisors
eQ has built a robust partnership with RCP Advisors, based in Chicago, since 2015. This current fund represents the sixth US fund raised through their collaboration. RCP Advisors is recognized for its deep expertise in managing lower middle-market North American funds, characterized by high resource availability and seasoned managerial talent. To date, eQ has successfully raised USD 1.2 billion for its US funds from a diverse client base of over 200 partners.
Growth in Private Equity Programmes
In the latter half of 2024 and early 2025, eQ has signed several private equity programmes totaling over EUR 330 million. Coupled with existing commitments, the total capital allocated for private equity approaches approximately EUR 1 billion. These programmes typically operate over a 4 to 5-year timeline, delivering clients a well-managed private equity portfolio that includes transparent reporting and streamlined administrative processes.
Expert Insights from the Head of Private Equity
Staffan Jåfs, Head of Private Equity at eQ, shared his perspective on the current investment climate: “Despite the M&A landscape being less active than usual for almost two years, the small and mid-cap market segment continues to show a healthy level of new investments and exits. We see significant investment opportunities in the lower middle market due to generally lower entry valuations and leverage, which creates pathways for operational value creation.”
Focus on Service-Oriented Companies
The investment strategy primarily targets service-oriented companies that cater to domestic markets, reflected in the fund's portfolio composition. This new fund not only presents investors with the opportunity to enter an appealing market but also connects them with top-tier portfolio funds cultivated through a solid partnership with RCP Advisors.
eQ's Robust Financial Standing
As of the end of 2024, eQ Asset Management reported having EUR 13.4 billion in total assets under management, with EUR 3.3 billion directly invested in their private equity funds. The group has developed a systematic approach, alternating between launching European and North American funds, providing a steady stream of investment options for professional investors.
Conclusion
eQ Asset Management Ltd., based in Finland, continues to excel in its domain, specializing in various asset management solutions, including private equity and real estate management. With a total of EUR 13.4 billion in assets under management, the company is well-positioned to cater to the evolving needs of institutional and individual investors alike. For further inquiries, you can reach Staffan Jåfs, Head of Private Equity at eQ, at +358 (9) 6817 8736.
Frequently Asked Questions
What is the purpose of the eQ PE XVII US fund?
The eQ PE XVII US fund focuses on making equity investments in small to medium-sized companies in the US and Canada, aiming to diversify its portfolio across various sectors.
How much capital has eQ Asset Management raised for this fund?
eQ Asset Management has raised a total of USD 168 million for the eQ PE XVII US fund since its launch at the beginning of 2025.
Who does eQ partner with for this fund?
eQ collaborates with RCP Advisors, a well-known private equity manager specializing in the lower middle market in North America.
What types of companies will the fund invest in?
The fund will invest predominantly in service companies that focus on domestic markets across various industries.
How much total capital is managed by eQ Asset Management?
As of the end of 2024, eQ manages approximately EUR 13.4 billion in total assets, including EUR 3.3 billion in private equity funds.
