LONDON, Feb 23 (Reuters) - Swedish buyout fund EQT closed its third fund for infrastructure investments with a hard cap of 4 billion euros ($4.2 billion) which was raised in less than six months, it said on Thursday.
EQT Infrastructure III will follow the fund’s overall infrastructure investment strategy and keep investing in sectors such as energy, transport and logistics, environmental, telecom and social infrastructure, mainly in Europe and North America.
A source familiar with the situation said the fund was originally targeting 2.9 billion euros and was four times oversubscribed.
“Around two-thirds of the commitments were made by investors in prior EQT funds,” said Jussi Saarinen, Partner and Head of Investor Relations at EQT Partners.
The source said the fund’s equity investment target will typically be between 200 and 500 million euros.
The fund has already signed four acquisitions including Danish business to business data communication services provider GlobalConnect and Lumos Networks, a fibre based data and broadband service provider in the United States.
The EQT Infrastructure funds have invested a total of 2.5 billion euros across 19 investments, eight of which have been realised to date.
The source said EQT’s first infrastructure fund achieved a 2.4 multiple on invested capital while the second reached 1.7 and continues to invest.
$1 = 0.9489 euros Reporting by Dasha Afanasieva; editing by Jason Neely/Ruth Pitchford