As part of efforts to build out the firm’s secondaries business, Bloomberg reports that EQT is now actively considering possible acquisitions of scaled platforms, including Coller Capital, HarbourVest Partners, and Pantheon.
“This continues to be a space that is of interest to us. And we feel good about the conversations that we are having and also our reputation as a consolidator in the industry,” EQT’s newly appointed chief executive officer, Per Franzen, told analysts last week.
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Coller Capital, founded in 1990 by Jeremy Coller (dubbed the ‘Godfather of Secondaries’), manages $46 billion and is one of the largest independent secondaries-only platforms. HarbourVest has about $147 billion under management and offers direct co-investments, private credit, infrastructure and fund-of-funds solutions alongside secondaries. Pantheon, backed by Affiliated Managers Group, manages about $75 billion.
In short, any of the three would give EQT immediate scale.
A number of EQT’s peers have taken a similar approach. CVC Capital Partners acquired a majority stake in secondaries firm Glendower Capital in 2021, while Ares Management acquired Landmark Partners that same year.
Others have opted to build organically, often poaching senior hires from established platforms. HIG, New Mountain Capital, Warburg Pincus, and A&M Capital have each brought in new secondaries talent in recent months.
In all, 15 of the top 50 firms by fundraising volume now have dedicated secondaries strategies, according to PEI Group, up from just four firms in 2020.
For EQT, a deal for Coller Capital could be the more attractive option among the available targets. The firm would provide a pure-play secondaries business and could be a good fit for a founder-led target without a publicized succession plan.
With its broader multi-strategy offerings, an option like HarbourVest has the potential for added complexity relative to Coller.
Since listing in 2019, EQT has struck deals for healthcare-focused venture manager LSP and the €6.8 billion purchase of Baring Private Equity Asia in 2022. It also explored a potential tie-up with Arctos Partners in May of this year, though discussions ended without an agreement.