EQT opens Abu Dhabi office, launches Gulf investment platform

Summary

• Swedish buyout firm EQT opened an Abu Dhabi office and launched a dedicated Middle East platform Wednesday.
• The firm manages $389 billion globally and will chase Gulf deals ranging from $15 million to $1 billion.
• EQT joins a wave of global investors setting up near the world's largest sovereign wealth funds.

The latest

Swedish private equity firm EQT has launched a Middle East platform and opened an office in Abu Dhabi, giving one of Europe's largest buyout houses its first on-the-ground presence in the Gulf, the company said Wednesday. The platform will deepen support for existing portfolio companies, build on regional institutional relationships and pursue new investments, according to a company statement.

Details

• The leadership: Jimmy Mahtani has been appointed chairman of EQT's Gulf operations and leads the new platform, the firm said. Smiyet Belrhiti serves as Middle East head and also runs the Abu Dhabi office, according to the company, which did not name other senior hires attached to the launch.
• The deal range: Mahtani told Reuters the firm could look at transactions from $15 million up to $1 billion depending on the opportunity. That spread leaves EQT room to write both mid-market cheques and large-cap tickets from the same regional base, without committing to a target deployment figure for the Gulf.
• The team: The Abu Dhabi office currently hosts a 10-person team spanning private capital and infrastructure investment alongside capital raising and business operations, EQT said. The firm did not set out a hiring timeline or a headcount target for the office.
• Target sectors: Belrhiti said EQT could invest in healthcare, education, business services and infrastructure, including digital infrastructure and utilities. The list tracks the areas where Gulf governments have concentrated spending, though the firm did not identify specific assets or pipeline transactions under review.
• The scale: EQT manages $389 billion in assets globally, according to the company, placing it among the largest alternative asset managers to formalise a Gulf presence. The firm did not disclose how much of that total is allocated to the Middle East.
• Existing exposure: EQT portfolio companies with an active presence in the Gulf include Nord Anglia Education, the firm said. Part of the platform's stated purpose is deepening support for those existing holdings rather than building the regional book from a standing start.
• The wider trend: Global investment firms have expanded their Gulf footprint in recent years, drawn by proximity to some of the world's largest sovereign wealth funds and a growing deals pipeline, Reuters reported. EQT's launch adds to that run of regional openings.
• The capital angle: The Abu Dhabi team covers capital raising as well as investing, according to the firm — a structure that positions the office to court regional limited partners for EQT's global funds, not only to source local acquisitions.

Background

Abu Dhabi and Riyadh have competed to attract international fund managers by offering access to state investors and regulatory hubs. Sovereign wealth funds in the region rank among the biggest allocators to private equity worldwide, making physical presence a condition for many mandates.

Between the lines

The dual mandate is the detail that matters. A 10-person team split between investing and capital raising, sitting next to the region's sovereign funds, suggests the Abu Dhabi base is as much about gathering Gulf money for EQT's global strategies as about buying Gulf assets. The $15 million floor on deal size points to a build-out phase rather than an immediate hunt for headline transactions.

What's next

Watch for EQT's first announced Gulf transaction and its sector, any disclosed regional fund or mandate from a sovereign investor, and whether the Abu Dhabi headcount expands beyond the initial 10-person team.

Source: Reuters