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EQT Funds
Annual Review 2009
KEY FACTS
EQT Funds
Annual Review
2009
2 EQT AT A GLANCE
3 WELCOME TO EQT
4 THE IMPORTANT ROLE OF THE PRIVATE EQUITY INDUSTRY
6 THE HISTORY OF EQT – BUILDING COMPANIES FOR THE FUTURE
7 THE EQT FUNDS IN BRIEF
8 THE OUTLOOK FOR OUR MARKETS
10 CREATING VALUE THROUGH GROWTH AND DEVELOPMENT
12 THE EQT INDUSTRIAL NETWORK
13 THE EQT CORPORATE GOVERNANCE MODEL
14 CASE STUDIES: LBX, KBW AND ISS
16 SENIOR ADVISORS DISCUSS EQT’S UNIQUE GOVERNANCE MODEL
18 EQT IN FIGURES
20 INVESTOR BASE
21 INVESTMENT STRATEGIES 2009
22 – EQUITY FUNDS
23 – EXPANSION CAPITAL FUNDS
24 – INFRASTRUCTURE FUND
25 – OPPORTUNITY FUND
26 SUMMARY OF EQT’S RESPONSIBLE INVESTMENT POLICY
27 EQT FUNDS PORTFOLIO – OVERVIEW
31 TRANSACTIONS IN 2009
32 – CABLETEL EAD AND EUROCOM EOOD
34 – HTL-STREFA S.A.
36 – MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP
38 – SKYKON A/S
40 – SPRINGER SCIENCE+BUSINESS MEDIA S.A.
42 – SWEDEGAS AB
44 – PALODEX HOLDING OY
44 – BODILSEN A/S
45 FUND GOVERNANCE
46 EQT PARTNERS
46 – IN BRIEF
47 – PARTNERS AND MANAGEMENT GROUP
48 – OFFICES
1
EQT FUNDS ANNUAL REVIEW 2009
TAL IMAGING GROUP PALODEX SOLD • EXPANSION CAPITAL BACKS DANISH WIND ENERGY SUPPLIER SKYKON • ACQUISITION OF
FIRST INVESTMENT • GERMAN ACADEMIC PUBLISHER SPRINGER SCIENCE+BUSINESS MEDIA ACQUIRED • ACQUISITION OF US B
AMOUNT INVESTED BETWEEN DEC 2006 AND NOV 2009
€ 2 BILLION
FROM OVER
TWENTY COUNTRIES
OF INSTITUTIONAL
ANNUAL SALES GROWTH
12% IN PORTFOLIO COMPANIES
CABLE TV OPERATORS CABLETEL AND EUROCOM • FINNISH DENTAL IMAGING GROUP PALODEX SOLD • EXPANSION CAPITAL BAC
BASED GAS-FIRED COGENERATION COMPANY MCV EQT INFRASTRUCTURE’S FIRST INVESTMENT • GERMAN ACADEMIC PUBLISHER
TOTAL CAPITAL RAISED SINCE START
€ 13 BILLION
ANNUAL EARNINGS GROWTH
18% IN PORTFOLIO COMPANIES
ANNUAL GROWTH IN NUMBER OF EMPLOYEES
11%IN PORTFOLIO COMPANIES
This Annual Review is being issued by EQT Funds Management Limited (EFML), a Guernsey-based fund manager and administrator, and promoter of EQT funds. EFML
provides executives to serve as directors of general partners to the EQT funds. Any statement of belief expressed by EQT in this Annual Review represents solely the belief
of EFML and does not represent the belief of any other entity or of the EQT funds. No reliance should be placed upon the contents of this Annual Review for the purpose
of making an investment in an EQT fund. All fi nancial and other analysis in this Annual Review has not been independently verifi ed.
We transform good companies into leading companies, making
sustainable improvements through the consistent application of
our proven industrial strategy.
THE EQT PRIVATE EQUITY MODEL
We make investments in strong companies, in the sectors
and regions where we have the specialist expertise to make a
genuine difference.
We call upon our unique “Industrial Network” of established
business leaders to create an effective and engaged Board of
Directors that work together with the management team and
the EQT representative. Together, we develop and implement a
strategy for accelerated growth of the company, with the goal of
achieving regional or global leadership.
By applying EQT’s methods of management support, rigorous
performance analysis and sound fi nancial discipline, we help these
businesses to grow sales and earnings through internationalization,
strategic acquisitions and margin development.
The EQT Equity, Expansion Capital, Infrastructure and Opportunity
funds apply the same basic principles and industrial strategy to
the management of their respective investments.
THE RESULTS
We normaly hold our portfolio companies for between three and eight
years, typically making signifi cant and sustainable improvements
in their operations.
During the EQT Equity funds’ ownership, the portfolio companies
have annually, on average, increased sales by 12%, the number
of employees by 11% and earnings by 18%.
With regard to portfolio companies sold, EQT has been successful
in terms of return on invested capital.
EQT at a GlanceEQT manages a group of leading private equity funds, with investments in Northern and
Eastern Europe, Asia and the US. All EQT funds are advised by EQT Partners.
EQT FUNDS ANNUAL REVIEW 2009
2
3
EQT FUNDS ANNUAL REVIEW 2009
2009 was truly challenging – for EQT, the private equity industry
as well as for most other industries. Fiscal problems are facing
many countries and the economic recovery is still fragile. The
deep and extended recession has put pressure on portfolio
companies, in some cases resulting in refi nancings, including
some of EQT’s portfolio companies.
Nevertheless, we see some improvement in the business
environment in general and the private equity market enjoyed
increasing levels of activities in the latter part of 2009. The fact
that EQT agreed on fi ve new investments in the fourth quarter
alone is one telling example.
EQT´s industrial approach has again proved its effectiveness.
Just like in previous downturns, EQT´s portfolio companies have
continued to develop and, in most cases, even grow.
And growth is really what the EQT business model is all
about. We strongly believe that today it has more relevance than
ever. EQT focuses on growing and transforming companies,
with a preference for changes to be implemented quickly, while
always maintaining a long-term perspective. In our view, this
approach creates strong and competitive companies which can
attract the best management, are good employers and, over
time, deliver attractive risk-adjusted returns to EQT’s investors.
We are coming out of this recession in good shape and the
efforts to support the portfolio companies, both fi nancially and
operationally, are paying off.
A key strength in EQT’s industrial approach is the symbiosis
between the portfolio companies’ CEOs, the investment advisor
EQT Partners and EQT´s unique Industrial Network. The clear
division of responsibilities between these groups and the willingness
among EQT´s industrialists to take a hands-on role is, in our
view, rarely seen elsewhere – this is the backbone of the Boards
in EQT’s portfolio companies. The ability to enter and maintain
close, long-term relationships with industrialists who are willing
to invest both time and money in portfolio companies, we believe
gives us a unique position in the private equity industry.
As activity in 2010 picks up, we believe the EQT funds are well
positioned to take advantage of the opportunities that arise across
the various investment strategies. That is equally true for the EQT
funds as well as the portfolio companies.
Best regards
EQT Funds Management Limited
Welcome to EQT
The money invested is normally derived from a pooled fund of long-
term institutional investors, such as pension funds, endowments,
banks or insurance companies. As with many alternative asset
classes, private equity strives for a high absolute return for investors,
with limited correlation to the public equity market or other
security markets.
Private equity usually provides medium- to long-term committed
capital, which helps companies to grow and become successful
to the benefi t of all stakeholders.
THERE ARE FOUR PRINCIPAL STYLES TO
PRIVATE EQUITY INVESTING:
• Venture Capital fi nances new companies that have little or
no revenue. This is common in the life science or technology
sectors for example.
• Expansion Capital helps companies grow. They may need help
to fi nance a new factory, a rapid geographic expansion or to
develop new product lines.
• Buyout means acquiring a controlling interest in a more mature
company. The acquisition often entails a complete change in
ownership and applying new strategies to add value to the company.
• Special Situations involve investment in a distressed company,
or a company that faces special challenges.
In all these cases, the private equity fund is seeking a high-quality
management team and a strategic plan to grow and improve the
business.
In many situations, the private equity fund will fi nance an
investment partially with debt, to limit the capital requirement
and to leverage the returns. Private equity investors usually
invest for the long-term and seek sustainable improvements in
the operations of the business.
THERE ARE FOUR WAYS FOR A PRIVATE EQUITY
FUND TO OBTAIN RETURN ON AN INVESTMENT:
• IPO (Initial Public Offering), fl oating part of or the whole company
on a public stock exchange. The private equity fund often stays
on as a substantial owner for a period of time.
• Trade Sale in which the company is sold to an industrial buyer.
• Secondary Sale in which the company is sold to another
fi nancial investor.
• Recapitalization in which the balance sheet is restructured to
facilitate a large one-off dividend to the owners.
The Important Role of the Private Equity IndustryPrivate equity is an alternative asset class, generally comprising equity investments in unlisted
companies. It plays a vital role in growing companies in many countries and industries.
EQT FUNDS ANNUAL REVIEW 2009
4
The typical term of an EQT fund is ten years with a possible
extension of up to two years.
Usually, investments are made within the fi rst fi ve years and
exits within the last fi ve years of the life of an EQT fund.
A long-term perspective and the ability to meet commit ments
over time are essential for an investor in an EQT fund, as the
commitment will only be drawn when needed in connection with
an investment or new capital injections.
Correspondingly, capital will only be returned to investors over
time as portfolio companies are sold or refi nanced.
THE PRIVATE EQUITY FUND LIFE CYCLE
Fundraising: Capital commitments from investors. Sourcing and Entry: Searching for and acquiring portfolio companies. Ownership period: Development of portfolio
companies. Exit: Investment realizations through sales to new owners, IPOs etc.
The basic organizational structure of EQT and its supporting
func tions and advisors follows broadly accepted industry practice.
At the core of the structure is the fund that makes and controls
the investments. Typically, an EQT fund invests in 10 to 15 port folio
companies.
Investors, the limited partners, make commitments to the
funds and the funds may draw down commitments when
needed to make an investment. The funds use the commitments
to invest in and grow portfolio companies.
The general partner invests alongside the limited partners and
is the decision-making body for the fund. During the investment
process, the general partner is responsible for investments,
divestments and the ongoing governance of portfolio companies.
For these services the general partner receives an annual profi t
share from the fund.
The general partner in each of the EQT funds uses EQT Partners
as an exclusive investment advisor and in a consultancy capacity
to assist in the execution of investments and divestments. The
general partner uses the annual profi t share obtained from the
fund to pay for the services received from the investment advisor
and other service providers, and to pay costs incurred in the
management of the EQT funds.
The EQT funds are domiciled in Guernsey. Investors in EQT
funds are taxed in their home countries, as applicable.
THE PRIVATE EQUITY FUND STRUCTURE
YEAR 1 2 3 4 5 6 7 8 9 10 11 12
FUNDRAISING
SOURCING AND ENTRY
OWNERSHIP PERIOD
EXIT
CAPITAL
RETURN RETURN
ADVICE
CAPITAL
FEE
CA
PITA
L
MA
NA
GE
ME
NT
FEE
RE
TUR
N
LIMITED PARTNERS(INVESTORS)
FUND PORTFOLIO COMPANIES
GENERAL PARTNER INVESTMENT ADVISOR
5
EQT FUNDS ANNUAL REVIEW 2009
The History of EQT – Building Companies for the Future
EQT was established in the mid-1990s by a group of investors
including Investor AB (the largest industrial holding company
in Northern Europe, controlled by the Wallenberg foundations),
AEA Investors (a US-based private equity group) and SEB. The
fi rst buyout fund, EQT I, was launched in January 1995. From
the very beginning the focus has been on long-term development
of the portfolio companies.
The EQT industrial strategy was, and remains, at the heart
of the fi rm’s business model. The Wallenberg family’s tradition
of engaged and constructive ownership is an important part of
EQT’s heritage. The extensive Industrial Network of experienced
executives and a transparent Corporate Governance Model are
other key factors in the success of EQT.
Our approach has not only delivered superior returns but has
also shown its resilience when times have been diffi cult, as they
indeed were in 2009. A long-term view, the deep experience of the
Industrial Network and the skills of the investment professionals at
EQT Partners have proved to be a powerful combination, historically
providing outstanding returns throughout multiple business cycles.
In 2003, EQT broadened its scope to include investment strategies
other than buyouts. In that year, the fi rst Expansion Capital Fund
was launched. Since then, the Opportunity and Greater China II
funds in 2006 and the Infrastructure Fund in 2008 were added,
to capitalize on EQT’s Industrial Network and accumulated
experience.
Today, the EQT family consists of 12 private equity funds with
approximately EUR 13 billion of committed capital. Since its
establishment, EQT has invested some EUR 8.5 billion in more
than 75 companies.
EQT Partners is the exclusive investment advisor to all EQT
funds. The partners in EQT Partners AB hold 69% of the shares
with Investor AB holding the remainder.
EQT Partners has more than 200 employees, of whom
approximately 100 are investment professionals with industrial
and fi nancial backgrounds.
EQT Partners has offi ces in Copenhagen, Frankfurt, Helsinki,
Hong Kong, London, Munich, New York, Oslo, Shanghai, Singapore,
Stockholm, Warsaw and Zurich.
The EQT family of private equity funds has been active for 15 years. From its origin as a
manager focusing on Swedish buyouts, EQT is now a leading manager of private equity
funds with investments in Northern and Eastern Europe, Asia and the US. EQT has raised
about EUR 13 billion.
EQT FUNDS ANNUAL REVIEW 2009
6
EQUITY
The funds make control and co-control investments in high-
quality, market-leading, medium-sized companies in growing
industries in Northern and Eastern Europe, and Asia with a
potential for top-line growth.
EXPANSION CAPITAL
The funds provide fl exible capital solutions in Northern and Eastern
Europe in a variety of situations, including expansion capital for
privately owned businesses, changes in shareholder structure
and acquisitions by strategic or fi nancial investors.
INFRASTRUCTURE
The Fund invests primarily in existing infrastructure in Northern
and Eastern Europe but also has the fl exibility to invest globally,
particularly in North America. Investment targets are basic
infrastructure, concession based infrastructure, social infrastructure
and infrastructure-related services.
OPPORTUNITY
The Fund’s focus was on medium-sized companies in Northern
Europe that had a sound underlying business and a clear value
creation potential, but also faced problems that required special
expertise to resolve. The Fund closed for new investments in 2010.
The EQT Funds in Brief
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
EQT I EQT DANMARK
EQT II
EQT III EQT FINLAND
EQT IV EQT EXPANSION CAPITAL I
EQT OPPORTUNITY EQT GREATER CHINA II
EQT EXPANSION CAPITAL II EQT V
EQT INFRASTRUCTURE
Did you know that Sanitec invented
the 2/4 liter toilet fl ushing device, a
breakthrough in water-saving?
7
EQT FUNDS ANNUAL REVIEW 2009
The global economy continued to battle with recession in 2009
and is estimated by the International Monetary Fund (IMF) to
have contracted by 0.6%. In the latter part of the year, it became
apparent that a gradual recovery was underway, underpinned by
massive stimulus measures adopted by governments. That makes
the recovery fragile as it is uncertain when private demand will
be robust enough to fuel growth on its own.
IMF forecasted, in April, that the global economy will grow by
4.2% in 2010 and 4.3% in 2011. The return to growth is varying
considerably between regions, with emerging markets and Asia,
in particular China, in the lead. More developed economies,
such as those in the Euro zone, are expected to remain sluggish
for some time. The IMF projects 1.0% growth in 2010 and 1.5 %
in 2011 in the Euro zone.
We are already seeing credit markets starting to ease, but
in the near-term we expect most companies, including those
backed by private equity, to continue to face diffi cult conditions.
In 2009 there were several cases in which fi nancial restructuring
or a forced change of ownership was necessary among companies
backed by private equity. These conditions are likely to continue
in 2010, with a combination of high leverage and signifi cant
under-performance as the main cause. Generally however,
private equity funds are well-positioned to support their portfolio
companies under diffi cult conditions, given an active corporate
governance model and ready access to capital.
The recession continues to demonstrate that the skills required
to manage a successful private equity fund are changing. Given
the state of the credit markets, fi nancial engineering has become
less important. The ability to add value to portfolio companies
and truly develop and change them is taking greater prominence
in driving fund strategies.
European deal fl ow in 2009 was considerably lower than in
2008 with 253 deals in 2009 worth EUR 23 billion, constituting
declines of 57% and 68% respectively, according to the Private
Equity Barometer. However, activity in Europe increased as the year
progressed and the fourth quarter saw two transactions valued
at more than EUR 1 billion, one of them being the acquisition of
academic publisher Springer Science+Business Media by EQT V.
As the economy continues to improve, we expect a likely
increase in exits. A recovery in valuations in private equity
portfolios in the latter part of 2009 provides an early indication of
this. The emergence of some larger deals with substantial debt
packages late in 2009 indicates that the tight credit conditions
may be easing somewhat, even though the general credit supply
situation remains restrictive.
New funds raised by private equity in the fourth quarter of 2009
were the lowest in six years, and the fundraising climate in the
coming years is likely to remain challenging. However, buoyant
stock markets, an upturn in the economy and improving valuations
are likely to increase the appetite among institutional investors.
Meanwhile though, existing funds still have large quantities
of avai lable capital to invest and European funds alone have well
The Outlook for our MarketsAn increase in activity in the private equity markets is expected to continue. However, a slow
recovery in Western economies and cautious credit markets mean that our environment
will remain challenging.
EQT FUNDS ANNUAL REVIEW 2009
8
over EUR 125 billion to deploy, according to information provider
Preqin. As the economic recovery gains momentum price
expectations among buyers and sellers will reach a new equilibrium
and we expect that activity will most likely pick up again.
TRADITIONAL BUYOUTS
The buyout sector is on track for a gradual recovery in 2010,
with the medium-sized segment rather than large- to mega-
sized transactions taking the lead. As price expectations adjust,
especially among families and other private owners, they are
met by buyout funds that now use signifi cantly higher portions of
equity and less complicated debt arrangements than historically
was the case.
Many larger multinational companies are still struggling
with profi tability and often need to reduce debt or shed poorly
performing units. This might create a certain upswing in
corporate divestments in 2010.
In our view, the secondary markets are also likely to be
revived and signs of that were present at the end of 2009. We
expect that portfolio companies that have run into trouble and
seek fi nancial restructuring under new ownership will continue to
come to the market.
Germany and the Nordic region are the largest markets for
EQT and these are expected to follow the general trends in the
private equity market. In 2009, the Nordic region lost 74% in
buyout transaction value, to EUR 2.5 billion. In Germany, the
drop was 48% in 2009 compared with 2008. In the fourth
quarter both Germany and the Nordic region were among the
most active buyout markets in Europe. The private equity market
transaction value in China was USD 6.6 billion in 2009, compared
to USD 10.1 billion in 2008.
EXPANSION CAPITAL
Deal fl ow for potential transactions with privately-owned companies
is expected to remain strong in 2010. There is an increasing
demand from family-owned companies to fi ll an equity gap with
alternatives to traditional equity solutions, e.g. when implementing
growth strategies or to facilitate changes in shareholder structures
without losing control. This is triggered by a lack of fi nancing
from traditional mezzanine providers and local banks.
INFRASTRUCTURE
Infrastructure companies have been less affected by the crisis
than companies in other sectors. Deal volume globally was
however down 33% in 2009 from 2008, according to information
provider Preqin.
Tight credit supply limited debt availability for acquisitions in
2009 but, going forward, a less limiting credit supply and a reduction
in vendors’ price aspirations may fuel increased deal activity.
Public sector budgets are under greater pressure than ever
in many regions and this opens the way for a more signifi cant
role for private infrastructure investments. Divestment of some
existing infrastructure assets is one way for the public sector to
manage defi cits and public debt levels.
Many governments in Europe and North America are seeking
to stimulate their economies by channeling government funding
to investments in new infrastructure, plus encouraging investments
to upgrade existing infrastructure for higher effi ciency and reduced
environmental impact. Overall, we believe that the outlook for the
infrastructure segment is positive for 2010 and beyond.
Did you know that KBW has
the largest high-speed broad-
band network in Germany?
9
EQT FUNDS ANNUAL REVIEW 2009
Creating Value Through Growth and DevelopmentEQT makes investments in companies with potential for top-line growth. The strategy for
creating value is to deliver a better company to the next owners.
The strength of our commitment and the success of our strategy
can be seen in the outstanding results we have achieved over 15
years. Our portfolio companies have, on average, grown sales by
12% per year while the number of employees has increased by
11% per year.
More than 75% of the value created in the companies sold
in the EQT funds can be attributed to operational improvements
and top-line growth. This is achieved through close cooperation
between EQT and the Board of Directors and management of the
portfolio companies, with the support and guidance of our unique
Industrial Network of highly experienced and well connected
business leaders.
The result has been an excellent outcome for our funds, and
the many thousands of individuals who invest through them, as well
as the management and employees of our portfolio companies
themselves.
To achieve these results, we drive change and development
with a strong sense of urgency and with strategies clearly geared
towards growth.
Consensus around strategic direction for a company is a prerequisite,
since one of the cornerstones of our ownership model is our
partnership with management and the Board of Directors as we
transform the business.
At the time of investment, EQT develops a strategy for accelerated
growth, together with senior advisors with relevant or industry-
specifi c experience from the EQT Industrial Network. We appoint
the Board of Directors, which in turn apply a clear and specifi c
Corporate Governance Model and, when needed, strengthen the
management team.
The strategy acts as a roadmap for future value creation and
progress is closely monitored. Key measures may include:
SALES GROWTH – Increasing sales through organic growth and
acquisitions.
OPERATIONAL EXCELLENCE, IMPROVING MARGINS AND
EFFICIENCY – Our expertise in industrial management helps our
portfolio companies to increase their effi ciency and profi tability.
Did you know that the Greenland army uses boots from Lundhags?
EQT FUNDS ANNUAL REVIEW 2009
10
We install state-of-the-art benchmarking and assessment methods.
The ambition is typically to become “best-in-class” in such areas
as production, customer relations and service.
We can also help to shift simpler production to low-cost
countries and by making the necessary investments to improve
productivity.
STRATEGIC REPOSITIONING – Utilizing changing industry
dynamics, investing in future technologies and divesting non-core
businesses, to create a strong base for rapid expansion.
MARKET AND PRODUCT EXPANSION – Targeting new
customer groups or broadening the product offering which could
mean new products in existing categories or applying a proven
technology to new product categories or uses.
INTERNATIONALIZATION – A key benefi t of EQT ownership,
given our extensive international network.
BOLT-ON ACQUISITIONS – Expanding the company step-
by-step by acquiring competitors or companies with similar or
complementary products, technologies or market presence. The
ambition is often to achieve economies of scale and drive internal
effi ciencies. It may also mean driving consolidation of a fragmented
industry. Our continuous research and our many contacts provide
us with an excellent overview of the acquisition opportunities for
our portfolio companies, which can accelerate growth.
OPTIMIZING CAPITAL STRUCTURE – Our fi nancial expertise
can be applied to creating effi cient capital structures and,
ultimately, to prepare the improved company for sale to its
eventual owner.
CONSTRUCTIVE EXIT – We will typically exit our investments
through an IPO, a Trade Sale, or in a Secondary Transaction.
Did you know that Scandic
sells almost 7 million room
nights each year?
11
EQT FUNDS ANNUAL REVIEW 2009
The EQT Industrial NetworkOur extensive network of experienced industrialists plays a key role in driving development,
change and growth in portfolio companies. Network members serve as advisors in
transactions and as Board members during EQT’s ownership period.
The EQT Industrial Network, a large group of advisors with deep
industrial experience, sets EQT apart from other private equity
groups. The network includes around 100 advisors who are current
or former senior executives of major international corporations
and successful medium-sized companies in a variety of industries.
In our view, this network is unique in scope and nature and
strategically important when EQT sources and analyzes potential
investments. Network members also support the strategic,
operational and fi nancial development of our portfolio companies,
either from a Board position or in an advisory role.
We believe that the combined experience and knowledge
of our advisors is unrivalled in the market and enables EQT to
develop strong, growing and sustainable companies.
A majority of our advisors have been part of the EQT Industrial
Network for many years. Most of them have served as CEOs or
Board members of EQT portfolio companies and have accumulated
experience of developing companies within the EQT governance
framework.
EQT evaluates the network members continuously and adds
new advisors as required to ensure that relevant knowledge and
competencies are available for all situations.
A key part of the development of the Industrial Network involves
inviting potential network members to serve on the Board of
Directors of a portfolio company or act as consultants in investment
projects. This interaction with existing members gives the potential
member an opportunity to become familiar with the EQT governance
model and simultaneously allows EQT to assess how they deal
with “live” issues.
EQT holds regular Industrial Network meetings. We believe
these provide an excellent forum for broad knowledge-sharing
and professional development as well as ensuring that the
advisors, as well as the EQT Partners advisory teams, act in
alignment with EQT’s investment objectives.
A list with examples of members of the EQT Industrial Network
is available on the EQT website, www.eqt.se.
Did you know that Gambro produces more than 165,000 km of
blood vessel line tubing per year (a distance halfway to the moon)?
EQT FUNDS ANNUAL REVIEW 2009
12
EQT primarily exercises its ownership infl uence through the
portfolio company Board of Directors. The Board defi nes and
monitors strategic plans in the portfolio company. It ensures that
the management is able to run the company in a responsible
and accountable manner.
When a portfolio company has been acquired, EQT appoints
a new Board with a Chairman independent from EQT Partners.
The Chairman is generally an industrialist with management
background sourced from the EQT Industrial Network.
The Chairman is supported by other Board members, who
are sector specialists and professionals with relevant experience,
and by EQT Partners. The Board is carefully structured for each
portfolio company and its specifi c needs and is usually kept
small to ensure strong commitment and swift decision-making.
The Board of Directors appoints the CEO.
The Expansion Capital funds differ from the other funds in that
they invest as a lender. Nevertheless, in the majority of cases, the co-
control rights as well as representation on the Board of Directors
enables the Expansion Capital funds to be an active stakeholder.
THE TROIKA FORUM
The CEO, the Chairman of the Board of Directors and the EQT
representative on the Board of Directors form the TROIKA forum.
This team constitutes an important pillar of EQT’s Corporate
Governance Model. The members of the TROIKA work closely
together and conduct regular follow-ups between Board meetings.
The forum also enables an active dialogue with, and is a sparring
partner to, the CEO on a continuous and informal basis.
EVALUATION AND MONITORING
Continuous performance evaluation is a crucial part of the EQT
Corporate Governance Model. The performance of the CEO,
Chairman, the overall Board of Directors and the EQT representative
is assessed once a year in a comprehensive appraisal process.
This process ensures that relevant competencies are present on
the Board and that governance works in accordance with EQT’s
principles. This evaluation can lead to changes in the Board
composition.
EQT also monitors the companies’ overall development
compared with the original plan. This is done on the basis of
briefi ngs to the EQT funds’ Investment Advisory Committees.
In addition, EQT Partners advises on the exit process and assists
in fi nancing and M&A issues.
COMMON MINDSET
An important requirement for the governance to work well is that
management, the Board of Directors and EQT share the same
interest and all act as owners. This is achieved by requiring that
EQT representatives, the Board and senior management all
invest in the portfolio company based on the same valuation.
A common mindset and shared agenda is also established
through a joint business plan and maximum transparency.
The EQT Corporate Governance ModelEQT’s Corporate Governance Model for its portfolio companies creates clear roles and
responsibilities for management of the company, its Board of Directors and EQT. We believe
the “TROIKA” concept is pivotal in driving growth and development in the portfolio companies.
13
EQT FUNDS ANNUAL REVIEW 2009
During 2008, EQT Greater China II bought a 48% stake in
China’s second largest pharmacy chain, Hunan LaoBaiXing
Pharmaceuticals (LBX), which had been started as recently as
2001. It is a discount chain with a clear cost leadership and a
market leading position in several regional markets.
LBX has grown well since its foundation, to having 129 stores
at the end of 2007. It targets mid- to old-age customers and
patients suffering from chronic diseases. Low price, comprehensive
product offerings, authentic products, in-store consultation
services and membership programs were key factors behind a
period of rapid growth.
EQT reinforced the Board with experienced retail experts
including Bjarne Mumm and Allan Warburg and drug distribution
industry veteran Peter Zuellig. The strategy is primarily to continue
supporting the strong organic growth while also working to
improve margins by putting more focus on high margin products
and a more effi cient procurement organization. By the end of
2009, high margin products had increased their portion of sales
to 38% from 23% at the start of 2008. The number of stores had
almost tripled to 372, including 28 acquired stores and 6 stores
in a newly entered province.
In 2009, 161 new stores were added compared with 82 in 2008.
Concurrently, stores are being re-modelled with LBX’s new brand
image to improve customers’ shopping experience. Service levels
have also been improved through continuous staff training.
Retail sales in 2009 were USD 294 million, up from USD 245
million in 2008 and USD 211 million in 2007. EBITDA increased
by more than 70% between 2007 and 2009.
Supporting Organic Growth
Case Studies
Did you know that 5 million
customers visit one of LBX’s
stores every month?
EQT FUNDS ANNUAL REVIEW 2009
14
In December 2006, EQT IV and EQT V acquired Germany’s third
largest cable TV operator, Kabel Baden-Württemberg (KBW). It
has market leadership in the Baden-Württemberg region and
is one of Europe’s largest cable TV operators with 2.3 million
subscribers.
On taking control, EQT started to implement a “triple-play”
strategy, driving combined sales of broadband, digital cable TV and
Internet telephony. This has grown revenues by 70% and almost
doubled EBITDA in the three years EQT has owned the company.
Broadband and digital TV penetration in Germany were lagging
behind those in other western European countries, providing
attractive growth opportunities through accelerating the introduction
of new technology and business concepts. Supported by EQT,
KBW made substantial investments in the network and new
technology, becoming the fi rst large scale operator in Germany
to introduce digital cable TV, broadband Internet and telephony
services on a single platform. Since then, KBW has continually
invested in its network for triple-play and continues to refi ne
the service offering. Today, KBW is the only cable company that
offers 100 MB broadband connections to consumers throughout
100% of its network.
Following the acquisition by EQT, KBW developed a new strategy,
revitalized its brand and intensifi ed and professionalized sales and
distribution. The marketing focus has been on attractive value
for money and easy-to understand packages rather than very low
absolute price levels. The management team was therefore
signifi cantly enhanced and the company’s technology-driven
culture was changed to focus on branded consumer goods.
One important factor behind the successful implementation
of the triple-play strategy was the complementary advisory board,
which is headed by Gunnar Asp, formerly CEO of former EQT
portfolio company Com Hem, who was brought in as Chairman.
Gunnar Asp is supported by other senior industrialists such as
former Deutsche Telekom CEO Kai-Uwe Ricke, Klaus Thiemann,
Ex-CEO of E-Plus Mobilfunk, and former SAT1 and EM.TV CEO
Werner E. Klatten.
The strategic move into triple-play, led by EQT, has proved
very successful for KBW: From 2006 to 2009 annual sales grew
from EUR 283 million to EUR 493 million while EBITDA grew
from EUR 125 million to EUR 245 million.
New Technology and Positioning
In May 2005, EQT took ISS, the listed Danish facility services
company, private. The acquisition was done by EQT III and EQT
IV in partnership with Goldman Sachs Capital Partners. EQT
owns 55% and Goldman Sachs 45%.
When the company was taken private it had sales of just over
DKK 40 billion and around 280,000 employees in 42 countries.
EQT’s strategy was to increase the global presence and build
scale in the individual countries to enable increased cross selling
across the various services and engage into large contracts covering
many countries and more services with large multinational clients.
The ambition to become a fully integrated services company
with global presence was executed through a large number
of smaller acquisitions and a few larger platform acquisitions.
A strong focus has always been on integrating the acquired
businesses to ensure maximum value creation, which has been
further emphasized by the implementation of the ISS Way strategy
in 2008 that continuously drives business excellence and best
practice sharing across the organization, both to increase organic
growth and improve operating effi ciency.
During EQT’s ownership, ISS has acquired more than 350
companies. This has added more than DKK 20 billion in annual
revenue and increased the presence to more than 50 countries,
including the successful re-entry into the US by the platform
acquisition of Sanitors in 2007 and the platform acquisition of
Tempo in Australia in 2006.
The success of the strategy to become a global integrated
facility provider was cemented in 2008 when ISS signed a global
integrated facility contract with HP, covering 45 markets across
the ISS services. A number of other large contracts have been
signed, including multinational contracts for Shell and EDS.
Today, ISS has almost 500,000 employees in 53 countries
and sales are approaching DKK 70 billion. The service pillars
that ISS operates are Cleaning, Catering, Security, Offi ce Support
and Property Services.
ISS has come a long way from being a cleaning company to a
global, broad-based integrated service provider.
Buy-and-Build
15
EQT FUNDS ANNUAL REVIEW 2009
EQT’s unique network of industrial advisors comprises in total around
100 individuals, often former CEOs or other senior managers,
who spend time on EQT portfolio companies or EQT projects.
A striking difference between Boards in EQT portfolio companies
and Boards in many other companies backed by private equity,
is the dominance of industrialists. This is an important cornerstone
in EQT’s industrial strategy – developing and improving the
portfolio companies.
Ulf Berg is a former executive at ABB and Sulzer and is Chairman
of SAG and MCV. He believes that a Board that has mainly
industrialists, rather than people with a fi nancial background,
provides a very different discussion that is much more focused
on strategy and business. “People have a tendency to stick to
what they know best. Serving on an EQT portfolio company Board
typically means a higher level of engagement and involvement
and, working in tandem with management and the owners,
enables us to take the company forward.”
In Berg’s opinion, “Some ‘newcomers’ may fi nd our Board
meetings somewhat chaotic and more like business reviews but
that is the point! Although we satisfy many of the basic formalities
applicable to listed companies, we can get rid of the purely
political elements and focus on strategy and business. Another
strength is that people invest both their time and money.”
Peter Nilsson is a former CEO of Duni, Chairman of Securitas
Direct and as of April 1, 2010, CEO of Sanitec.
He believes that making sure Board members have enough
time is one of EQT’s best governance tools. “Some of the network
members also serve on Boards of public companies and so they
can see a great difference in how such Boards work and function,”
he says. “I would say that even in a recession, the EQT model
is superior in that we can protect the companies. If there is a
challenge, we solve it.”
Vagn Sørensen, Chairman of Scandic, SSP and KMD, says
that it is revealing that the best Board candidates don’t want to
spend their time on public Boards, where they often have limited
Senior Advisors Discuss EQT’s Unique Governance ModelA clear governance, industrial strategy and effective Boards are trademarks of EQT. We
brought together three senior advisors from our Industrial Network to get their views and
tap into their experience.
“ We are in the business of
creating long-term, sustainable value
– not quick profi ts”
Peter Nilsson, former CEO of Duni. Chairman of Securitas Direct and as of April 1, 2010, CEO of Sanitec
Ulf Berg, former CEO of Sulzer.Chairman of SAG and MCV
EQT FUNDS ANNUAL REVIEW 2009
16
infl uence. “In a private equity owned company, you have a lot
of intellectual challenge and at the same time a fi nancial upside
through your investment in the company.”
Ulf Berg says that, in reality, “The difference is two percentage
points on EBIT between the way public companies are run and
the way we run ours.”
The so-called TROIKA model, where Chairman, CEO and
the EQT representative stay in close contact, is an effi cient and
much appreciated part of the governance model.
“This way of working is rather special for EQT and adds a lot
of value,” says Vagn Sørensen. “It is also very fl exible in that the
frequency can be easily adjusted. This was the case with SSP,
when we refi nanced the debt and had weekly calls, or even more.
Now that phase is over, we are back to a more normal frequency.”
Sørensen stresses that, “TROIKA is about giving support to
management, rather than replacing the Board as decision maker.”
The way each portfolio company is developed differs but a
common feature is a sense of urgency and a clear idea of how
to change and improve the company once it has been acquired.
This is achieved by the 100-day plan, developed for each company
to give the transformation process a fl ying start.
“We are often on the case at an early stage and that is important.
It is at this point,” says Sørensen, “that we can start understanding
the company needs and what kind of value creation is relevant.
Once a deal is closed, we normally already have a Board up and
running and are engaged with the management.”
However, he adds, “For me, the industrial strategy is about
ensuring that the business has the resources and tools it needs.
One example is KMD, where an important part of the plan is to
change the mindset from being government-owned to privately-
owned, with more pressure from competition, while at the same
time safe-guarding the competence embedded in the company.
We quickly brought in a former Microsoft manager from my own
network to accelerate and help manage that process.”
In order to be able to support the portfolio companies or
evaluate investment opportunities, the Industrial Network, as well
as the private network and individual experience, is key. Ulf Berg
says that in the case of MCV, ”I happened to be the one who
20 years ago actually was responsible for the plant and turbines
being built in my role at ABB.”
Coaching, supporting and recruiting management are key
tasks for the Boards and can make the difference between a
successful investment and a mediocre one.
According to Peter Nilsson, “If the company already has a
clear strategic track, it is easy to increase the pace, but you need
the right people in place. Our role is to empower management and
we allow mistakes, as long as you get up on your feet quickly.
We can make ordinary companies and ordinary managers do so
much more. Some may not know how fast they can run simply
because they have never tried. We let them.”
Patience and a long-term view on investments and performance
make up important features in the EQT value creation strategy.
Ulf Berg describes governing a company based on how profi ts
turn out, like “controlling a dog by grabbing the tail. Profi ts
emerge 2–3 years after the measures were taken that produced
them. We are not in the business of making quick profi ts but in
creating long-term value that is sustainable. Profi t is of course
necessary, but only as a means to an end.”
The senior advisors are evaluated by EQT and their peers and
this is unique for the EQT system.
Peter Nilsson says, “The yearly review process can be tough
but is both healthy and necessary. Many industrialists leverage on
their experience but in reality you are never better than your last job.”
The Industrial Network not only adds a lot of value to the portfolio
companies but it is also useful for the members. Peter Nilsson
says, “It is the most stable and valuable network I have seen or
been part of. If there is an issue, there are always collea gues to
turn to for help and it has made me a very active networker.”
“ In a recession, the EQT model
is superior in that we can protect
the companies. If there is a
challenge, we solve it”
“ It is the most stable
and valuable network I have
seen or been part of”
Vagn Sørensen, former CEO of Austrian AirlinesChairman of Scandic, SSP and KMD
17
EQT FUNDS ANNUAL REVIEW 2009
EQT i Fi
EQT has a broad range of sourcing, deal size and geographical
focus. The largest source for new investments is the Corporate
Sector, but Private Owners and Families are also important
sources. More than half of the investments have been made
in the Industrials or Consumer Goods sectors. During 2009,
EQT further strengthened its position in Germany and has 18
completed investments since entering the DACH market in
2000. In 2009, EQT announced the acquisition of Springer
Science+Business Media. EQT also made its fi rst investments in
Central and Eastern Europe (CEE) during 2009.
As EQT funds have grown larger over time, so has the average
deal size, but the Equity funds are still fi rmly rooted in the
mid-market segment. Few transactions have reached over EUR
500 million. The average deal size for all transactions is EUR
105 million and the median EUR 44 million.
30 INDUSTRIALS
20 CONSUMER GOODS
FINANCIAL 1
ENERGY & ENVIRONMENTAL 2
HEALTHCARE 10
TELECOM, MEDIA & TECHNOLOGY 8
SERVICES 7
Number of investments by type of industry
ALL INVESTMENTS BY INDUSTRY
<–15 15–30 30–50 50–100 100–200 200–500 >500
Number
€ m0
5
10
15
20
Number of investments by size of the initial investment
ALL INVESTMENTS BY SIZE
PRIVATIZATION/GOVERNMENT 1
39 CORPORATE
PRIVATE/FAMILY 17
PUBLIC 11
SECONDARY BUYOUT 10
Number of investments by type of seller
SOURCING OF ALL INVESTMENTS
CEE 2
GREATER CHINA 354 NORDIC
DACH* 18
NORTH AMERICA 1
Number of investments by deal-originating region
* Germany, Austria, Switzerland
ALL INVESTMENTS BY REGION
Sourcing of Investment Opportunities
Did you know that Aleris is the leading private company in the Nordic Region in obesity surgery?
EQT FUNDS ANNUAL REVIEW 2009
18
EQT has a long-term approach to investing, not only for the
benefi t of our portfolio companies but also to generate attractive
risk adjusted returns for our investors. Based on our experience,
we believe that buyers of portfolio companies will pay a relatively
higher price for companies that are well positioned in their markets
and have a fi rm foundation to continue to grow with a new owner.
The long-term perspective is therefore crucial to create value in
EQT’s portfolio companies. To this end, since 1995, sales in EQT
Equity funds’ portfolio companies have grown 12%, EBITDA
18% and the number of employees by 11% per year on average
– we believe that these are impressive results, particularly as our
holding period normally is between three and eight years.
Trade Sales are the most common exit route followed by Secondary
Transactions and IPOs. In 2009, EQT funds made two exits.
On average, EQT’s holding period in realized investments has
been 4.3 years.
OTHER 2
SECONDARY BUYOUT 12
IPO 8 19 TRADE SALE
Number of realized investments by type of divestment method
EXITS OF INVESTMENTS
Exits
Ownership Period – Creating Long-Term Value
Entry Exit
€m
5,000
15,000
25,000
35,000
46%
Entry Exit
€m
0
1,000
2,000
3,000
4,000
59%
Entry Exit0
200,000
400,000
600,000
800,000
67%
1–2 2–4 4–6 6–8 >8
Number
Years0
3
6
9
12
15
Holding years per realized investment from
the date of investment to the date of divestment
EXITS – HOW LONG DID EQT OWN THE COMPANIES?
SALES EBITDAEMPLOYEES
Total growth in EQT Equity funds’ portfolio companies during the funds’ ownership.
19
EQT FUNDS ANNUAL REVIEW 2009
Did you know that HTL-Strefa has nearly 50% global market share in safety lancets for capillary blood testing?
The investor base is truly global. The largest investors in the funds
are leading institutional investors from all parts of the world.
Typically, these are institutional investors such as insurance
companies, fi nancial institutions, pension funds, fund-of-funds,
endowments and foundations, but also large family offi ces.
The majority of our investors are based in Northern Europe.
In terms of type of investors, family offi ces have since inception
been important. Not only are they signifi cant investors but they
also make valuable contributions to the Industrial Network, as
they are often active in industries and businesses that may be
of interest to EQT.
The industrial holding company Investor AB, controlled by
the Wallenberg foundations, is a sponsor and anchor investor in
all EQT funds. Investor AB’s investment in each fund varies, but
is around 10% in the more recent EQT funds.
Investor BaseEQT has a broad and loyal set of blue-chip investors thanks to its track record, investment
strategy and market positions. We have about 250 institutional investors in current funds. In
addition, about 100 advisors from the Industrial Network have invested in the EQT funds.
REST OF WORLD 6%
50% NORDIC
REST OF EUROPE 27%
NORTH AMERICA 17% FUND-OF-FUNDS/GATEKEEPERS 17%
ENDOWMENTS/FAMILY OFFICES/FOUNDATIONS 16%
45% FINANCIAL/OTHER
GOV/PENSIONS/SWF 22%
ANALYSIS OF TOTAL CAPITAL RAISED
By Region By Type
EQT FUNDS ANNUAL REVIEW 2009
20
Although traditional buyout investment was EQT’s starting point
and origin, a broadening into other private equity-based investment
strategies has been natural in order to fully utilize EQT’s industrial
competence and experience. All investment strategies have a
focus on industrial acceleration, development and growth.
A broader range of investment strategies not only leads to greater
market presence and information gathering, it also attracts new
talent, promotes synergies and creates investment ideas. In addition,
the Industrial Network can be used more effi ciently across a
broader range of investment strategies.
Investment Strategies 2009EQT has three active investment strategies – Equity, Expansion Capital and Infrastructure –
all of which build on the collective experience and knowledge of the EQT family of private
equity funds and the Industrial Network.
EQT FUNDS – AROUND EUR 13 BILLION RAISED IN 12 FUNDS
FUND INV STRATEGY VINTAGE SIZE (EUR M) STATUS
EQT I EQUITY 1995 349 CLOSED FOR NEW INVESTMENTS
EQT II EQUITY 1998 676 CLOSED FOR NEW INVESTMENTS
EQT DANMARK EQUITY 1998 135 CLOSED FOR NEW INVESTMENTS
EQT FINLAND EQUITY 1999 138 CLOSED FOR NEW INVESTMENTS
EQT III EQUITY 2001 2,000 CLOSED FOR NEW INVESTMENTS
EQT EXPANSION CAPITAL I EXP CAP 2003 189 CLOSED FOR NEW INVESTMENTS
EQT IV EQUITY 2004 2,500 CLOSED FOR NEW INVESTMENTS
EQT OPPORTUNITY* SPECIAL SITUATIONS 2006 372 CLOSED FOR NEW INVESTMENTS
EQT GREATER CHINA II EQUITY 2006 535 **
EQT V EQUITY 2006 4,250
EQT EXPANSION CAPITAL II EXP CAP 2007 474
EQT INFRASTRUCTURE INFRASTRUCTURE 2008 1,167
* The EQT Opportunity Fund closed for new investments in 2010. **USD M
21
EQT FUNDS ANNUAL REVIEW 2009
EQT manages three Equity funds with a focus on Northern and
Eastern Europe with commitments totalling nearly EUR 9 billion:
EQT III, EQT IV and EQT V, and one fund with commitments
totalling approximately USD 535 million that target investments
in Asia: EQT Greater China II.
The Equity funds seek controlling or co-controlling equity
investments in companies with strong market positions that have
a signifi cant potential for top-line and earnings growth, a strong
cash fl ow, and a solid platform with a proven management team
that can retain or attract high-quality talent. The funds target
companies with potential for repositioning and active participation
in industry consolidation.
The Equity funds’ investment focus is on high-quality companies
with competitive advantages such as operational excellence,
unique brand qualities and superior product characteristics – the
building blocks of a strong market position. When assessing
growth potential, EQT also considers an array of factors such
as market size, distribution networks and customer satisfaction.
The Equity funds seek to avoid turnarounds or companies with
substantial commodity or political risk. The typical investment
size, excluding loans, in Northern and Eastern Europe ranges
between EUR 50 million and EUR 800 million, and for the Asian
investments (primarily mid-market buyouts and control or co-control
investments based in or connected with China, Hong Kong and
Taiwan) typically between USD 30 million and USD 100 million.
Two of the EQT Equity funds are active, with commitments
available for new investments: EQT V and EQT Greater China II.
EQT III and EQT IV are closed for new investments. EQT I, launched
in 1995, was wound up in January 2007. EQT II, EQT Finland and
EQT Danmark have realized all their investments and will be terminated.
Equity fundsEquity funds target high-quality, market-leading, medium-sized companies in
growing industries in Northern and Eastern Europe and Asia with potential for
top-line growth.
FUND-OF-FUNDS/GATEKEEPERS 17%
ENDOWMENTS/FAMILY OFFICES/16% FOUNDATIONS
43% FINANCIAL/OTHERGOV/PENSIONS/SWF 24%
CEE 2
25 SWEDENGREATER CHINA 3
FINLAND 7
GERMANY 8
NORWAY 1
9 DENMARK
<–15 15–30 30–50 50–100 100–200 200–500 >500
Number
€ m02468
1012
INVESTMENTS BY SIZE
22 INDUSTRIALS
13 CONSUMER GOODS
FINANCIAL 1
HEALTHCARE 7
TELECOM, MEDIA & TECHNOLOGY 6
SERVICES 6
NUMBER OF INVESTMENTS BY INDUSTRY
REST OF WORLD 8%
47% NORDIC
REST OF EUROPE 25%
NORTH AMERICA 20%
INVESTOR COMMITMENTS BY REGION
Did you know that Securitas Direct’s
monitoring station in Sweden handles
14 alarm signals per minute?
NUMBER OF INVESTMENTS BY COUNTRY/REGION
INVESTOR COMMITMENTS BY TYPE Springer Science+Business Media not included in statistics, signed in December 2009 and closed in
February 2010.
EQT FUNDS ANNUAL REVIEW 2009
22
EQT manages two Expansion Capital funds: EQT Expansion Capital I
(launched 2003) and EQT Expansion Capital II (launched 2007)
with commitments totalling EUR 663 million.
The Expansion Capital funds’ investment focus is on mid-market
businesses with an established market position that are looking
for alternatives to traditional equity fi nancing and are in need of
capital to accelerate growth or to change shareholder structure.
Capital solutions from the funds provide an alternative to traditional
equity fi nancing. The overall ambition is to enable expansion
and/or change while leaving the companies under the control of
the existing owners.
The Expansion Capital funds seek investments in companies
which typically have strong market positions and a signifi cant
potential for earnings growth. Expansion Capital tailors its
investment to the specifi c requirements and risk profi le of the
company involved. EQT believes that the equity orientation
enhances the Expansion Capital funds’ ability to generate an
attractive risk adjusted return. When considering an investment,
a key part of the analysis is focused on organic and/or external
growth and shareholder value creation opportunities available
to the company. EQT Expansion Capital I is fully invested and
EQT Expansion Capital II is active, with commitments available
for new investments. Today, the typical size of the investments
ranges between EUR 25 million and EUR 100 million.
Expansion Capital fundsExpansion Capital funds provide fl exible capital solutions in Northern and Eastern Europe,
in a variety of situations, including expansion capital for privately owned businesses,
changes in shareholders structure and acquisitions by strategic or fi nancial investors.
FUND-OF-FUNDS/GATEKEEPERS 17%
ENDOWMENTS/FAMILY OFFICES/FOUNDATIONS 18%
43% FINANCIAL/OTHER
GOV/PENSIONS/SWF 22%
DENMARK 1
SWEDEN 5
FINLAND 1
7 GERMANY
SWITZERLAND 1
<–10 10–15 15–20 20–30 30–50 50–100 € m
Number
0
2
4
6
INVESTMENTS BY SIZE
5 INDUSTRIALS
HEALTHCARE 3
TELECOM, MEDIA & TECHNOLOGY 2
ENERGY & ENVIRONMENTAL 1
SERVICES 1
3 CONSUMER GOODS
NUMBER OF INVESTMENTS BY INDUSTRY
59% NORDICREST OF EUROPE 37%
NORTH AMERICA 4%
INVESTOR COMMITMENTS BY REGION
Did you know that Candyking sold
1.4 kg of pick-and-mix candy per
second during 2009?
NUMBER OF INVESTMENTS BY COUNTRY
INVESTOR COMMITMENTS BY TYPE
23
EQT FUNDS ANNUAL REVIEW 2009
1 UNITED STATES
NUMBER OF INVESTMENTS BY COUNTRY
The Infrastructure Fund was launched in 2008 with commitments
of EUR 1.2 billion to meet the global demand for new, improved
and more effi ciently managed infrastructure. The investment
focus is on existing operating infrastructure companies.
The Fund invests in medium-sized and large infrastructure
companies which, in our view, have limited development and
construction risk. Targeted investments have demonstrated a track
record of long-term and reliable cash fl ows and signifi cant potential
for value creation through accelerated growth and operational
improvements.
The objective is to develop, grow and improve existing infrastructure
for the mutual benefi t of the local community and fund investors.
Potential investments include power generation, electricity and
gas networks, airports, toll roads, rail transportation, ports, waste,
sewage and water treatment facilities, telecommunication towers,
hospitals and care facilities and infrastructure related services.
The investment size, excluding loans, ranges between EUR 25
million and EUR 250 million. The EQT Infrastructure Fund is
active, with commitments available for new investments.
Infrastructure FundThe Infrastructure Fund invests primarily in existing infrastructure in Northern and
Eastern Europe but also has the fl exibility to invest globally, particularly in North America.
Investment targets are basic infrastructure, concession-based infrastructure, social
infrastructure and infrastructure-related services.
REST OF WORLD 8% 61% NORDIC
REST OF EUROPE 29%
NORTH AMERICA 2%
INVESTOR COMMITMENTS BY REGION
FUND-OF-FUNDS/GATEKEEPERS 17%
ENDOWMENTS/FAMILY OFFICES/FOUNDATIONS 20%
35% FINANCIAL/OTHER
28% GOV/PENSIONS/SWF
INVESTOR COMMITMENTS BY TYPE
1 ENERGY & ENVIRONMENTAL
NUMBER OF INVESTMENTS BY INDUSTRY
Swedegas not included in statistics, signed in December 2009 and closed in February 2010.
Did you know that MCV
is the largest natural
gas-fi red cogeneration
plant in the US?
EQT FUNDS ANNUAL REVIEW 2009
24
Did you know that MCV
is the largest natural
gas-fi red cogeneration
plant in the US?
The Fund’s investment focus was on medium-sized companies
in Northern Europe that had a sound underlying business and
a clear value creation potential, but also faced problems that
required special expertise to resolve.
The Fund made seven investments between 2006 and 2008 of
which two have been exited.
Opportunity FundThe EQT Opportunity Fund was launched in 2005 with a committed capital of EUR 372
million. The Fund’s Board of Directors closed the Fund for new investments in 2010.
FUND-OF-FUNDS/GATEKEEPERS 28%
ENDOWMENTS/FAMILY OFFICES/FOUNDATIONS 16%
FINANCIAL/OTHER 19% 37% GOV/PENSIONS/SWF
3 SWEDEN
DENMARK 2
GERMANY 2
<–10 10–15 15–20 20–30 30–50 € m
Number
0
1
2
3
INVESTMENTS BY SIZE
INDUSTRIALS 3 4 CONSUMER GOODS
NUMBER OF INVESTMENTS BY INDUSTRY
NORDIC 33%
38% REST OF EUROPE
NORTH AMERICA 29%
INVESTOR COMMITMENTS BY REGIONNUMBER OF INVESTMENTS BY COUNTRY
INVESTOR COMMITMENTS BY TYPE
25
EQT FUNDS ANNUAL REVIEW 2009
Summary of EQT’s Responsible Investment PolicyCREATING SUSTAINABLE VALUE
EQT’s strategy is to create superior returns for our investors by
creating signifi cant growth and sustainable improvements, over
the long term, in our portfolio companies.
We are convinced that the best interests of our investors are
aligned with those of the companies we own, their customers,
their employees and the communities in which they operate.
Therefore, while remaining resolutely commercial in all our activities,
we always aim to act in a socially responsible manner.
As in every other aspect of our approach to portfolio company
governance, we require determined and systematic management
according to the policy set out below, covering the key areas of
Environment, Labor & Human Rights and Ethics.
EQT requires that its exclusive investment advisor, EQT Partners,
adhere to this Responsible Investment Policy.
POLICY
EQT’s policy is to:
a) Act at all times as responsible owners promoting appropriate
Environmental, Labor & Human Rights and Ethical standards
in our portfolio companies to the extent commercially practicable.
This is achieved through the EQT “RI Governance Model”
described below.
and
b) When assessing potential investments, to consider Environmental,
Labor & Human Rights and Ethical issues, as part of our due
diligence.
RI GOVERNANCE MODEL
An essential part of EQT’s value creation model is the governance
and management structure that is put in place for each portfolio
company where EQT is majority owner.
The Board of Directors of each portfolio company is responsible
for defi ning strategy and policy, and EQT expects their role to
include the setting of sound environmental, labor and ethical
standards. EQT requires that the Board of every portfolio company
discuss their company’s compliance with RI Factors at least
once a year.
Each company’s CEO and management team are responsible
for executing strategy and running the daily operations of the
company according to the policies established by the Board.
EQT helps management to promote a culture of compliance
with the EQT Responsible Investment Policy by providing best
practice information and tools.
RI FACTORS
Environment
EQT aims to promote an appropriate level of environmental
awareness and sound environmental practices in the portfolio
companies that it owns or in which it has an interest, including:
• Limiting the emissions of harmful substances and harmful
waste
• Seeking appropriate permissions for dealing with hazardous
materials
• Complying with current environmental law
• Limiting consumption of environmentally scarce resources, e.g.
rainforest
• Monitoring other material environmental issues
• Seeking value creation potential from developing the company
as environmentally sound
Labor & Human Rights
EQT aims to promote sound labor and human rights practices
in the portfolio companies it owns or in which it has an interest,
including:
• Considering employee working conditions such as minimum
wages, working hours, health and safety of workforce
• Supporting the elimination of child labor
• Promoting employees’ right to collective bargaining
• Avoiding discrimination, e.g. based on age, race, gender,
religion, sexual orientation or disability
• Complying with international conventions on human rights
Ethics
EQT aims to promote sound ethical practices in the portfolio
companies that it owns or in which it has an interest, including:
• Promoting awareness and compliance with relevant laws and
regulations
• Avoiding corruption and unethical business practices
• Seeking positive involvement with stakeholders and community
RI INVESTMENT ANALYSIS
When considering the attractiveness and value creation potential
of any investment opportunity, EQT conducts a comprehensive
investment analysis. As part of that analysis, EQT considers and
identifi es performance on relevant RI Factors. Our approach
is not simply to mitigate risks but also to fi nd opportunities to
create value by enhanced management, such as reducing waste
or controlling energy usage, for example.
The outcome of the RI Investment Analysis procedures will
be documented in the materials presented to each EQT Fund’s
Board of Directors, which then considers the analysis in its overall
review of the investment opportunity.
Please refer to the EQT website, www.eqt.se, to read the complete policy.
EQT FUNDS ANNUAL REVIEW 2009
26
27
EQT FUNDS ANNUAL REVIEW 2009
EQT FUNDS ANNUAL REVIEW 2009
28
VTI AGREED ON A
NEW CONTRACTWITH STRATEGIC CUSTOMER FOR NEXT GENERATION PRODUCTS
SSP ANNOUNCED THE OPENING OF
STARBUCKS AT ARLANDA 2010
SECURITAS DIRECT
CONTINUED
EXPANSIONIN FRANCE WITH DOUBLING OF SALES FORCE
AND NEW INSTALLATIONS UP 80%
CBR MAINTAINED
MARGIN OF AROUND
30% DESPITE CHALLENGING
RETAIL MARKETS
CANDYKING ACQUIRED
NATURALSNACKS BRAND
PARROTS FROM OLW/ORKLA
ALERIS WON CONSIDERABLE SENIOR CARE CONTRACTS
IN THE NORDIC REGION
29
EQT FUNDS ANNUAL REVIEW 2009
SAG ACQUIRED SLOVAKIAN ELEKTROVOD AND POLISH ELCON ELBUD
AS A FIRST STEP IN BUILDING CEE FOOTHOLD
MUNKSJÖ WAS SUCCESSFULLY
REFINANCEDPROVIDING A STABLE AND LONG-TERM
CAPITAL STRUCTURE
LEYBOLD RECEIVED
LARGE-SCALE
TURN-KEYORDER FROM CHINESE SOPHITONG
STRONG NETWORK
INVESTMENTS ENABLED KBW TO OFFER UNRIVALED INTERNET CONNECTION SPEEDS OF 100MB+THROUGHOUT ITS ENTIRE NETWORK
ISS ISSUED EUR 525M OF NEW SENIOR NOTES DUE 2014
GAMBRO’S
PRODUCTPORTFOLIORENEWED WITH EIGHT NEW PRODUCTS LAUNCHED OF
WHICH TWO NEW DIALYSIS MACHINES
ALERIS is a leading Scandinavian health care company, active in three main sectors: health care, medical diagnostics and care.
The company operates specialist care centers, radiology clinics, clinical physiology units, laboratories, nursing homes and home
services as well as foster homes and psychiatric residential homes. Aleris is established in Sweden, Norway and Denmark.
COUNTRY SWEDEN | ENTRY 2005 | FUND EQT III | SALES SEK 3,882 M | EBITDA SEK 411 M | EMPLOYEES 3,600
BTX GROUP consists of 19 individual clothing brands, all positioned in the mid-market “value for money” segment of the market.
During the past 15 years, BTX Group has moved from being a production company to being a wholesaler. BTX Group has more
than 15,000 points of sale across Europe.
COUNTRY DENMARK | ENTRY 2005 | FUND EQT IV | SALES DKK 2,050 M | EBITDA DKK 132 M | EMPLOYEES 683
CARIDIANBCT, ex Gambro BCT, is a world leader in automated collections, therapeutic apheresis and cell therapy, as well as an
industry leader within blood component separation and purifi cation technologies. CaridianBCT provides technology, products and
services to blood centers, hospitals, and scientifi c, clinical and biotech researches.
COUNTRY USA | ENTRY 2006 | FUND EQT IV | SALES / EBITDA / EMPLOYEES PART OF GAMBRO
GAMBRO is a global medical technology company and a leader in developing, manufacturing and supplying products, therapies
and services for In-center Care and Self Care hemodialysis, Peritoneal Dialysis, Renal Intensive Care and Hepatic Care. Gambro
was founded in 1964 and has production facilities in 11 countries, sales subsidiaries in more than 40 countries and sales in more
than 100 countries.
COUNTRY SWEDEN | ENTRY 2006 | FUND EQT IV | SALES SEK 16,199 M | EBITDA SEK 3,291 M | EMPLOYEES 10,142
HTL-STREFA is a world leading manufacturer of blood micro-sampling devices. The company has nearly 50% of global market
share and #1 position in safety lancets and #2 global position in personal lancets. Key customers include the biggest medical
companies (OEMs). Headquarter is located in Ozorkow, Poland.
COUNTRY POLAND | ENTRY 2009 | FUND EQT V | SALES EUR 41 M | EBITDA EUR 15 M | EMPLOYEES 954
ISS is one of the world’s largest commercial providers of Facility Services with more than 100,000 B2B customers worldwide.
The company has operations in 53 countries in Europe, Asia, North and South America, and Australia. The fi ve business areas
in the Integrated Facility Service concept are Cleaning, Property Services, Catering Services, Offi ce Support and Security Services.
COUNTRY DENMARK | ENTRY 2005 | FUNDS EQT III , EQT IV | SALES DKK 69,004 M | EBITDA DKK 4,742 M | EMPLOYEES 485,800
KBW is the third largest German cable network operator with more than 2.3 million subscribers and market leadership in the
Baden-Württemberg region. It was the fi rst large scale operator to introduce digital cable television, broadband Internet and
telephony services (“triple-play”) on one single platform and has since then continued to upgrade its network for triple-play.
Today, Kabel BW has one of the most advanced broadband networks in Germany.
COUNTRY GERMANY | ENTRY 2006 | FUNDS EQT IV, EQT V | SALES EUR 493 M | EBITDA EUR 245 M | EMPLOYEES 756
CARL ZEISS VISION was created by the merger of the NYSE-listed company Sola International Inc. with the eyeglass lens
division of Carl Zeiss AG. The company is the global #2 and designs, manufactures and distributes a broad range of eyeglass
lenses, primarily focusing on the faster-growing organic lens segment. Carl Zeiss Vision is active in all regions of the world,
but is focused on Europe and North America.
COUNTRY GERMANY | ENTRY 2005 | FUND EQT III | SALES EUR 879 M | EBITDA EUR 90 M | EMPLOYEES 11,705
DAKO is a world-leading provider of systems for cancer diagnostics. Hospital and research laboratories worldwide use Dako
reagents, instruments and software to make precise diagnoses and determine the most effective treatment of patients suffering
from cancer. The company has a long history of market leadership and is highly recognized among pathology laboratories around
the world.
COUNTRY DENMARK | ENTRY 2007 | FUND EQT V | SALES DKK 1,764 M | EBITDA DKK 499 M | EMPLOYEES 1,018
CBR is a women’s fashion wholesale company with a network of about 8,800 points of sale. The company operates three brands:
Street One, Cecil and One Touch. It produces 12 collections per year and delivers superior value chain management which
is refl ected in the high speed from design to delivery. This provides customers with a high level of design security and good
commercial outcome for the store partners.
COUNTRY GERMANY | ENTRY 2007 | FUND EQT V | SALES EUR 680 M | EBITDA EUR 198 M | EMPLOYEES 582
EQUITY – PORTFOLIO
KMD is the third largest IT software and service provider in Denmark and is the undisputed market leader within its core
customer segment, the municipalities. The company primarily operates within IT software solutions and services to the Danish
municipalities and central government.
COUNTRY DENMARK | ENTRY 2009 | FUND EQT V | SALES DKK 3,827 M | EBITDA DKK 386 M | EMPLOYEES 3,245
CABLETEL AND EUROCOM are the two largest cable network operators with market leadership in Bulgaria and Macedonia (in
total with c. 470,000 subscribers). The companies offer analog/digital cable TV, broadband and telephony services (“triple-play”)
and continuously upgrade their networks in order to broaden and improve their product offering.
COUNTRY BULGARIA/MACEDONIA | ENTRY 2009 | FUND EQT V | SALES EUR 67 M | EBITDA EUR 31 M | EMPLOYEES 1,600
LEYBOLD OPTICS is a leading provider of vacuum technology used for solar systems, and applications in the fi elds of photovoltaic,
architectural glass and optics. The company invests signifi cantly into R&D and works in close cooperation with its customers to
provide tailor made solutions of highest quality. Leybold is headquartered in the Frankfurt area with production facilities in Alzenau,
Dresden and Beijing.
COUNTRY GERMANY | ENTRY 2001 | FUND EQT III | SALES EUR 108 M | EBITDA NEGATIVE | EMPLOYEES 494
MUNKSJÖ is a leading manufacturer of value-added specialty paper products. The company is organized in three divisions:
Decor Paper, Specialty Paper and Pulp. Munksjö’s main product, decor paper, is used in laminates for furniture, fl ooring, kitchen
worktops and other applications where the end product has the appearance of wood or other materials.
COUNTRY SWEDEN | ENTRY 2005 | FUND EQT III | SALES EUR 285 M | EBITDA EUR 16 M | EMPLOYEES 1,067
PSM is a leading full-service provider of fastening solutions. PSM supplies products to the automotive, mobile phone and general
industries and holds a leadership position in the supply of fasteners to the notebook PC industry. PSM has a strong presence in Asia
Pacifi c with manufacturing in China and Taiwan and sales and distribution in China, Taiwan and Singapore.
COUNTRY GREATER CHINA | ENTRY 2007 | FUND EQT GREATER CHINA II | SALES USD 28 M | EBITDA USD 2 M | EMPLOYEES 481
SAG provides build and maintenance outsourcing services for utilities in their transmission and distribution grids. SAG is the
German market leader and has international subsidiaries in France, Poland, Slovakia, the Czech Republic and Hungary.
As Europe’s largest pure-play infrastructure services provider, SAG expects to benefi t from the anticipated growth in Western
Europe and CEE for energy-related infrastructure services.
COUNTRY GERMANY | ENTRY 2008 | FUND EQT V | SALES EUR 791 M | EBITDA EUR 75 M | EMPLOYEES 5,655
SANITEC is a European multi-brand group that designs, manufactures and markets bathroom ceramics and bath and shower
products. Sanitec is based around well-known brands, which have strong positions and deep roots in the bathroom business.
The company works closely together with customers and industrial partners, architects and designers to develop sustainable
bathroom concepts with advanced design.
COUNTRY FINLAND | ENTRY 2005 | FUND EQT IV | SALES EUR 749 M | EBITDA EUR 56 M | EMPLOYEES 7,912
SECURITAS DIRECT is the leading alarm monitoring company in Europe, offering high-quality security services based on its
technology leadership within alarm products to homes and small businesses. The company serves more than 1.2 million customers
in 10 countries.
COUNTRY SWEDEN | ENTRY 2008 | FUND EQT V | SALES SEK 5,485 M | EBITDA SEK 1,359 M | EMPLOYEES 5,312
SPRINGER SCIENCE+BUSINESS MEDIA is the world’s second largest publisher of scientifi c, technical and medical journals
by titles and the largest publisher of scientifi c, technical and medical books. Springer is also the largest specialist information
provider in German-speaking countries.
COUNTRY GERMANY | ENTRY 2010 | FUND EQT V | SALES EURO 845 M* | EBITDA EURO 278 M* | EMPLOYEES 5,176
SSP is one of the largest food and beverage travel concession operators globally, with over 2,150 units in over 400 travel locations
across more than 30 countries. The company operates catering outlets primarily in airports and railway stations. The outlets are a
combination of well-known in-house brands such as Caffè Ritazza, Whistlestop and Bonne Journée and franchised brands such
as Marks & Spencer, Starbucks, Caviar House and Burger King.
COUNTRY UK | ENTRY 2006 | FUND EQT IV | SALES GBP 1,539 M | EBITDA GBP 113 M | EMPLOYEES 30,000
VTI TECHNOLOGIES is a leading supplier of acceleration, inclination, motion and pressure sensor solutions for automotive,
medical, instrument and consumer applications. VTI develops and produces silicon-based capacitive sensors using its proprietary
3D MEMS (Micro Electro-Mechanical System) technology. Product range consists of sensor elements and components.
COUNTRY FINLAND | ENTRY 2002 | FUND EQT III | SALES EUR 54 M | EBITDA EUR 3 M | EMPLOYEES 579
EQUITY – PORTFOLIO
SCANDIC is the leading hotel chain in the Nordic region with more than 150 hotels in 10 countries. The majority of the hotels are in
the Nordic markets and the remainder in other European locations. Scandic operates in the mid-market segment, with hotels either
in the city centre or on the outskirts with access to airports or major road networks. The company operates mainly leased hotels with
a mix of guests from business, conference and leisure markets.
COUNTRY SWEDEN | ENTRY 2007 | FUND EQT V | SALES EUR 661 M | EBITDA EUR 62 M | EMPLOYEES 6,600
LAOBAIXING was established in 2001 in Hunan province in China as the country´s fi rst discount pharmacy superstore chain. The
company operates 372 retail pharmacy chain stores in 11 provinces and 3 direct municipalities across China. It offers low prices,
in-store consultation service and membership programs to its customers.
COUNTRY GREATER CHINA | ENTRY 2008 | FUND EQT GREATER CHINA II | SALES USD 294 M | EBITDA USD 23 M | EMPLOYEES 8,463
YIN RONG is a regional branded juice producer based in Xian, Shaanxi province, China. The majority of its products have juice
content of 10–60%. Its products are distributed both through retail and catering channels.
COUNTRY GREATER CHINA | ENTRY 2007 | FUND EQT GREATER CHINA II | SALES USD 5 M | EBITDA NEGATIVE | EMPLOYEES 285
*EXCLUDING DISPOSED ACTIVITIES
STRAUSS INNOVATION is a private-label retail chain with approximately 100 stores in Germany. The company is well known for
its innovative assortment concept combining interior decorations as well as women’s and men’s apparel.
COUNTRY GERMANY | ENTRY 2008 | FUND EQT OPPORTUNITY | SALES EUR 166 M | EBITDA NEGATIVE | EMPLOYEES 1,120
TITANX ENGINE COOLING is a supplier of engine cooling solutions to manufacturers of trucks, buses, off-highway
equipment and industrial diesel engines. The company has manufacturing sites in Mjällby and Linköping, Sweden, and
Jamestown, NY, in the US.
COUNTRY SWEDEN | ENTRY 2008 | FUND EQT OPPORTUNITY | SALES SEK 868 M | EBITDA SEK 46 M | EMPLOYEES 626
MIDLAND COGENERATION VENTURE is the largest natural gas-fi red cogeneration plant in the US. The plant capacity is 1,560
megawatts of electric power and 1.35 million pounds per hour of steam. MCV’s electrical capacity represents approximately 10%
of the power consumption for Michigan’s Lower Peninsula and is a critical energy resource for the Midwest US. The core power
generation equipment of the plant is among the most reliable technologies in the industry.
COUNTRY USA | ENTRY 2009 | FUND EQT INFRASTRUCTURE | SALES USD 294 M | EBITDA USD 70 M | EMPLOYEES 126
SWEDEGAS owns and operates the largest part of the Swedish high-pressure gas transmission network, located in southern and
western Sweden. Swedegas’ trunk line stretches from Dragør (Denmark) to Stenungsund (Sweden). Swedegas is regulated by the
Swedish Energy Markets Inspectorate and holds government concessions for its network activities. Swedegas’ direct customers
are primarily distribution network owners.
COUNTRY SWEDEN | ENTRY 2010 | FUND EQT INFRASTRUCTURE | SALES SEK 243 M | EBITDA SEK 177 M | EMPLOYEES 24
GRANNGÅRDEN is one of the largest Swedish non-food retailers in terms of national coverage and number of stores. Granngården
also operates a mail order and Internet store under the Nordpost brand. Granngården has fi ve product areas: Animals & pets,
Agriculture, Garden, Home & clothing and Machines & forestry. Headquarters are located in Malmö and distribution centre in
Jönköping.
COUNTRY SWEDEN | ENTRY 2008 | FUND EQT OPPORTUNITY | SALES SEK 1,827 M | EBITDA SEK 30 M | EMPLOYEES 601
INFRASTRUCTURE – PORTFOLIO
CIMBRIA produces machinery and turn-key plants in three business areas; Cimbria (grain dryers, conveyers, sorting equipment,
loading chutes and large turn-key grain terminals), Oil Pressing (engineering business supplying plants used in the food and oleo
chemistry industry to produce edible oil, glycerine, fatty acid and biodiesel) and Air Cleaning (fi lters, fans and duct systems to
different industries).
COUNTRY DENMARK | ENTRY 2007 | FUND EQT OPPORTUNITY | SALES DKK 881 M | EBITDA DKK 69 M | EMPLOYEES 810
OPPORTUNITY – PORTFOLIO
LUNDHAGS* established 1932 in Järpen/Åre, Sweden, offers functional products with high quality and compelling design for active
outdoor use. Product range covers footwear, clothing, backpacks and Nordic skating. Products are sold under Lundhags brand.
Main markets are the Nordic region and Germany.
COUNTRY SWEDEN | ENTRY 2006 | FUND EQT OPPORTUNITY | SALES SEK 92 M | EBITDA SEK 5 M | EMPLOYEES 30
* FIVE SEASONS AND TENSON BRANDS (ACQUIRED 2006) WERE DIVESTED LATE 2009 AND EARLY 2010. AS A RESULT OF THE DIVESTMENTS THE
REPORTING NAME WAS CHANGED FROM NORRWIN TO LUNDHAGS (ACQUIRED 2007), THE ONLY BRAND LEFT UNDER THE NORRWIN UMBRELLA.
CANDYKING is the market leader in pick-and-mix confectionery sales in Sweden, Finland, Norway and the UK. Candyking provides
an integrated pick-and-mix concept for traditional confectionery, natural snacks and premium chocolates to grocery retailers,
cinemas, fun fairs, service stations and other outlets. The concept is based on the supply of a wide confectionery and natural
snacks assortment and display solutions combined with full service and sales support.
COUNTRY SWEDEN | ENTRY 2008 | FUND EQT EXPANSION CAPITAL I | SALES SEK 1,690 M | EBITDA N/A | EMPLOYEES 546
CINTERION is the global market leader in wireless modules for cellular machine-to-machine communication. The company
provides solutions for smart metering, fl eet management, tracking & tracing, wireless alarms, remote monitoring and many other
applications. Headquartered in Munich, Germany, Cinterion is a global business with a strong focus on Europe and US.
COUNTRY GERMANY | ENTRY 2008 | FUND EQT EXPANSION CAPITAL II | SALES EUR 145 M | EBITDA N/A | EMPLOYEES 326
KVT is a leading engineering distributor for fastening solutions and supplier of expanders (high-end sealing technology products).
The company is headquartered in Dietikon, Switzerland, and has own subsidiaries in Germany, Poland, the Czech Republic,
Austria and the US. Other markets are served via a network of distribution partners throughout the world.
COUNTRY SWITZERLAND | ENTRY 2008 | FUND EQT EXPANSION CAPITAL II | SALES N/A | EBITDA N/A | EMPLOYEES N/A
PHARMAZELL focuses on the manufacturing of active pharmaceutical ingredients (APIs) to blue chip pharmaceutical companies.
APIs are the substances in drugs that create the desired medical/therapeutic effect. The company has production sites in
Germany, Denmark and India and is headquartered in Raubling, Germany.
COUNTRY GERMANY | ENTRY 2007 | FUND EQT EXPANSION CAPITAL I | SALES N/A | EBITDA N/A | EMPLOYEES 530
EXPANSION CAPITAL – PORTFOLIOALERIS is a leading Scandinavian health care company, active in three main sectors: health care, medical diagnostics and care.
The company operates specialist care centers, radiology clinics, clinical physiology units, laboratories, nursing homes and home
services as well as foster homes and psychiatric residential homes. Aleris is established in Sweden, Norway and Denmark.
COUNTRY SWEDEN | ENTRY 2005 | FUND EQT EXPANSION CAPITAL I | SALES SEK 3,882 M | EBITDA SEK 411 M | EMPLOYEES 3,600
MUNKSJÖ is a leading manufacturer of value-added specialty paper products. The company is organized in three divisions:
Decor Paper, Specialty Paper and Pulp. Munksjö’s main product, decor paper, is used in laminates for furniture, fl ooring, kitchen
worktops and other applications where the end product has the appearance of wood or other materials.
COUNTRY SWEDEN | ENTRY 2005 | FUND EQT EXPANSION CAPITAL I | SALES EUR 285 M | EBITDA EUR 16 M | EMPLOYEES 1,067
SSP is one of the largest food and beverage travel concession operators globally, with over 2,150 units in over 400 travel locations
across more than 30 countries. The company operates catering outlets primarily in airports and railway stations. The outlets are a
combination of well-known in-house brands such as Caffè Ritazza, Whistlestop and Bonne Journée and franchised brands such
as Marks & Spencer, Starbucks, Caviar House and Burger King.
COUNTRY UK | ENTRY 2006 | FUND EQT EXPANSION CAPITAL I | SALES GBP 1,539 M | EBITDA GBP 113 M | EMPLOYEES 30,000
SKYKON is a supplier to the wind energy industry and has two business platforms: tower solutions and composites, manufacturing
towers as well as blade tooling and composite components for blades. Skykon serves the international wind energy market as a
supplier to wind turbine manufacturers. The company is headquartered in Århus, Denmark.
COUNTRY DENMARK | ENTRY 2009 | FUND EQT EXPANSION CAPITAL II | SALES N/A | EBITDA N/A | EMPLOYEES 367
SAUSALITOS is a leading casual gastro pub chain with more than 26 locations in Germany. Sausalitos stores have a common
branding and interior design following a leisure-like southern-style theme. Sausalitos offers its customers a great variety of food
and drinks.
COUNTRY GERMANY | ENTRY 2008 | FUND EQT EXPANSION CAPITAL II | SALES N/A | EBITDA N/A | EMPLOYEES N/A
N/A – FIGURES NOT TO BE DISCLOSED ACCORDING TO SALES PURCHASE AGREEMENTS
EQT FUNDS ANNUAL REVIEW 2009
30
SCANDIC INITIATED
COOPERATION WITH WORLD FAMOUS CHEF
JAMIE OLIVER
2009 RECORD YEAR FOR SAUSALITOS
KVT STRENGTHENED
SALES FORCE WITH 20 KEY ACCOUNT
MANAGERS
GRANNGÅRDEN
LAUNCHED
A NEW CORPORATEIDENTITYLOGOTYPE AND STORE CONCEPT
In December, EQT V acquired the world’s second-largest scientifi c,
technical and medical publisher, Springer Science+Business Media.
The acquisition was done together with GIC Special Investments,
the private equity arm of the Government of Singapore Investment
Corporation which holds an 18% minority interest. EQT V also
acquired the two leading Bulgarian and Macedonian cable TV
companies, Eurocom and CableTel, with the intention to merge
the two entities and create a market leader in the region. In
Poland, EQT V successfully took medical device manufacturer
HTL-Strefa private in partnership with the company’s founder
who remains as a signifi cant minority shareholder.
EQT Infrastructure announced three deals in its fi rst year of
operation. In May 2009, the Fund acquired Midland Cogeneration
Venture, the largest natural gas-fi red cogeneration power project
in the US. This was followed by the agreement to acquire the
hazardous waste management company Kommunekemi (not
yet closed) in Denmark and the acquisition of the Swedish gas
transmission company Swedegas.
EQT Expansion Capital backed Danish wind energy supplier
Skykon with growth capital in a transaction that lets the current
owners retain control. In November, PaloDEx was sold to US
group Danaher Corporation in a trade sale.
For EQT Opportunity, the year was focused on supporting
and restructuring the portfolio companies during the economic
downturn. Danish furniture manufacturer Bodilsen fi led for
bankruptcy in June after the market collapsed and the lenders
withdrew their funding.
The year also saw signifi cant activity in the existing portfolio
companies and in several cases additional equity was provided
in order to help the companies weather the recession and take
advantage of any opportunities that may arise. For each of Sanitec,
Munksjö and SSP, a fi nancial restructuring was carried out which
included a renegotiation of the loans and loan terms and new
equity provided by the EQT funds. To fi nd out more about the
2009 transactions, read the following case reviews.
Transactions in 2009The number of transactions declined somewhat compared to 2008. A pick-up in activity
was however registered towards the end of the year and the last quarter saw seven deals
being signed.
31
EQT FUNDS ANNUAL REVIEW 2009
The merger between cable TV operators CableTel and Eurocom
provides EQT with an excellent platform to drive the adoption of
both digital TV and broadband in Bulgaria and Macedonia. In
October, EQT V acquired Eurocom from Warburg Pincus and
70% of CableTel from US investor Gene Phillips. CableTel’s other
shareholder, Ron Finley, stays on as a minority shareholder in the
merged group. Total transaction value exceeded EUR 200 million.
The Bulgarian and Macedonian cable TV market is fragmented
and digital TV and broadband penetration rates are signifi cantly
lower than in the European Union. EQT V intends to accelerate
the penetration of digital TV, broadband and telephony services
by investing signifi cantly in the network and in the new value
proposition of the merged entity.
A key factor in the deal was the simultaneous acquisition
and subsequent merger of the two companies in order to secure
synergies, a leading market position and a large enough platform
for growth.
EQT has previously developed Swedish cable TV operators StjärnTV
and Com Hem, into leading local providers of digital TV, broadband
and telephony – called triple-play. Currently, EQT owns a leading
German cable TV operator, Kabel Baden-Württemberg, which
has recorded signifi cant growth and successfully developed the
triple-play concept in Germany.
In all these instances, EQT senior advisor Gunnar Asp was
heavily involved. Previously CEO at StjärnTV and Com Hem, and
Chairman of Kabel Baden-Württemberg, Gunnar Asp is Chairman
of the Board of the merged company.
The merged company will be the clear market leader in both
Bulgaria and Macedonia with annual revenues of above EUR 60
million and half a million households connected to the network.
EQUITY EQT V – ACQUIRED IN OCTOBER 2009
Creating a Market Leader in Cable TVThe merger between two leading cable TV operators in Bulgaria and Macedonia created
a clear market leader with scale synergies and the capacity to invest in new technology
and products.
CableTel and Eurocom TROIKA: Gunnar Asp, Chairman. István Polony, CEO. Piotr Czapski, Partner EQT Partners.
EQT FUNDS ANNUAL REVIEW 2009
32
CABLETEL EAD AND EUROCOM EOOD IN BRIEF
SECTOR MEDIA | HEAD OFFICE SOFIA | CHAIRMAN GUNNAR ASP | CEO ISTVÁN POLONY
WEBSITE WWW.CABLETEL.COM | SALES 2009 EUR 67 MILLION | EMPLOYEES 2009 1,600
33
EQT FUNDS ANNUAL REVIEW 2009
In November 2009, EQT V launched a public tender offer for
the Polish lancet maker HTL-Strefa, listed on the Warsaw Stock
Exchange. EQT approached the company at an early stage and
quickly involved senior advisors, including Heino von Prondzynski, a
member of the Board of CaridianBCT and former CEO of Roche
Diagnostics, and Anders Williamsson, former CEO of HemoCue.
EQT’s track record with previous investments in the medical
device industry and the industrial advisors’ deep understanding
of HTL-Strefa’s market niche, were critical in creating trust among
owners and management. By the time the offer was announced,
EQT already had the acceptance of major shareholders holding
a 78% stake. The tender offer was successful and after the
squeeze-out of minority shareholders in February 2010, 100%
of shares outstanding were acquired. The company is to be
delisted in the second quarter 2010.
The transaction was EQT’s fi rst acquisition in Poland and, as
the largest public-to-private buyout outside the banking sector, it
was a high-profi le deal in the CEE region.
HTL-Strefa is the world’s leading manufacturer of safety lancets,
with close to 50% market share, and the global number two in
personal lancets. Half of the sales are generated in Europe and
half in the US. Major customers include several large diabetes
players and key wholesalers.
Safety lancets are used by healthcare professionals to obtain
capillary blood samples for diagnostic purposes. This segment
represents around 75% of HTL-Strefa’s sales. Personal lancets,
used by diabetes patients for blood glucose testing, constitute
the remaining 25%.
HTL-Strefa operates two scalable, state-of-the-art production
facilities in Ozorkow and Leczyca in central Poland and was
founded in 1995. In 2006 it was listed on the Warsaw Stock
Exchange. The company has control of a signifi cant portion of
the value chain, including manufacturing of needles and springs.
A large part of the business is based on long-term contracts with
durations of between 3 and 5 years.
HTL-Strefa is the undisputed market leader in attractive markets
with a low cyclicality and a double digit underlying growth.
Demographic trends, diabetes, health and safety regulation and
new applications, constitute the key growth drivers.
Going forward, the development plan for HTL-Strefa includes
the entry into adjacent markets with new products, while leveraging
on existing client relationships and production capabilities. There
is also room to further improve margins, as fi xed costs can be
spread over a larger revenue base, and by driving the already
initiated cost cutting program.
EQUITY EQT V – ACQUIRED IN DECEMBER 2009
The Global Leader in Safety LancetsPolish company HTL-Strefa has nearly 50% market share in safety lancets worldwide.
EQT is taking the company private with the aim of accelerating growth and expanding
into new markets.
HTL-Strefa TROIKA: Heino von Prondzynski, Chairman. Wojciech Wyszogrodzki, CEO. Piotr Czapski, Partner EQT Partners.
EQT FUNDS ANNUAL REVIEW 2009
34
HTL-STREFA S.A. IN BRIEF
SECTOR HEALTHCARE | HEAD OFFICE WARSAW | CHAIRMAN HEINO VON PRONDZYNSKI | CEO WOJCIECH WYSZOGRODZKI
WEBSITE WWW.HTL-STREFA.PL | SALES 2009 EUR 41 MILLION | EMPLOYEES 2009 954
35
EQT FUNDS ANNUAL REVIEW 2009
EQT Infrastructure acquired the US natural gas-fi red cogeneration
company, Midland Cogeneration Venture LP (MCV), in the second
quarter of 2009. The deal was the fi rst by the Infrastructure
Fund, which was closed in the last quarter of 2008 with EUR 1.2
billion in committed capital. The transaction was also the fi rst
direct investment by an EQT fund in the US.
The acquisition of MCV was made in partnership with Fortistar,
a US investor specializing in cogeneration and other green
energy projects. EQT Infrastructure has a controlling interest of
70%, with Fortistar, management and Board holding the rest.
MCV is the largest natural gas-fi red cogeneration plant in the
US, with a capacity of 1,560 megawatts of electricity and 1.35
million pounds per hour of process steam for industrial use.
A key strength of MCV is its core power generation equipment,
supplied mainly by Alstom (formerly ABB). A strong slate of senior
advisors during the transaction process and particularly two
ex-ABB executives, now in the EQT Industrial Network, played
critical roles. Ulf Berg and Harvey Padewer had both been
involved with MCV when it was originally constructed and during
its fi rst years of operation.
Prior to closing, the senior advisors worked closely with
EQT and Fortistar to identify opportunities to further enhance
reliability and effi ciency and to increase plant capacity. These
advisors continue to provide guidance to company management
as these plans are executed under the Board leadership of Ulf
Berg, Chairman of MCV.
EQT’s industrial approach to investments, together with a credible
plan for value creation at MCV, also proved essential when raising
the debt fi nancing for a deal at the height of the fi nancial crisis.
Towards the end of 2009, the identifi ed enhancements were
well under way and both fi nancial performance and deliveries to
power distributors were developing as planned.
MCV’s generating capacity represents approximately 10% of
the electricity consumption of Michigan’s Lower Peninsula and
the majority of MCV’s generation capacity is sold under a long-term
power purchase agreement with the local utility, Consumers Energy
Company. In addition, MCV sells steam and electricity to The
Dow Chemical Company and steam to Dow Corning Corporation.
In addition to implementing operational enhancements, MCV
is likely to pursue new power and steam sales opportunities,
while continuing to serve its core customers, and to evaluate
potential capacity expansion opportunities, given the existing
underutilized infrastructure on site.
This acquisition was recognized as the 2009 North American
Acquisition Deal of the Year by Project Finance Magazine.
EQT INFRASTRUCTURE – ACQUIRED IN MAY 2009
Entering the US Energy SectorEQT Infrastructure made its fi rst investment in 2009 when it acquired US power and heat
generation company MCV. The transaction was one of the most high profi le in the US
energy sector in 2009.
Midland Cogeneration Venture TROIKA: Glen Matsumoto, Partner EQT Partners. Robert Freedline, CEO. Ulf Berg, Chairman.
EQT FUNDS ANNUAL REVIEW 2009
36
MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP IN BRIEF
SECTOR ENERGY & ENVIRONMENTAL | HEAD OFFICE MIDLAND | CHAIRMAN ULF BERG | CEO ROBERT FREEDLINE
WEBSITE WWW.MIDCOGEN.COM | SALES 2009 USD 294 MILLION | EMPLOYEES 2009 126
37
EQT FUNDS ANNUAL REVIEW 2009
When fast-growing Danish wind energy technology supplier Skykon
was looking for capital needed for continued growth and industrial
support to develop the company, EQT Expansion Capital II was an
attractive and obvious alternative. The subordinated loan structure
in Skykon permits the current shareholders to retain control
while Skykon gains access to the capital needed for continued
growth and industrial support to develop the company.
Skykon consists of two overall business areas. Skykon Towers
Solutions is a leading manufacturer of large towers for leading OEMs
such as Nordex, Siemens and Vestas, especially within offshore
towers. Skykon Composites is the world leader in CNC-milled
plugs used for production of wing moulds. It also produces
modules and internal composites for the wings, primarily the
critical root ends.
The wind energy sector is expected to enjoy, on average,
double digit growth per annum over the next fi ve to ten years and
outsourcing by OEMs is expected to increase. This creates a
need for a more international supplier base with companies who
can handle the increasingly complex global sourcing needs of OEMs.
EQT’s ability to combine capital and industrial know-how, through
the network, was a decisive factor in closing the transaction.
Skykon’s shareholders were looking for a committed investor
that could support them in taking the company to the next level
in terms of industrial professionalization. The additional capital
available will to a large extent be used to invest in production
facilities and other development.
There is attractive potential in the offshore market but also
signifi cant operational improvement opportunities and synergies
within the Skykon group, in particular in connection with international
expansion. The wind energy supplier industry is fragmented,
which may provide interesting acquisition opportunities. Smaller
suppliers could be seeking a larger and more stable context in
order to continue their development.
Skykon is the fi rst EQT Expansion Capital investment in Denmark
and EQT’s fi rst investment in the wind energy industry.
EQT EXPANSION CAPITAL II – FINANCING PROVIDED IN OCTOBER 2009
Expansion Capital For Wind Energy SupplierEQT Expansion Capital provides growth fi nancing for Danish wind energy supplier Skykon.
EQT´s industrial know-how will be instrumental in taking Skykon to the next level of
professionalization and international expansion.
Skykon TROIKA: Petri Sandell, Partner EQT Partners. Kaj Thorén, Chairman. Jesper Øhlenschlæger, CEO.
EQT FUNDS ANNUAL REVIEW 2009
38
SKYKON A/S IN BRIEF
SECTOR ENERGY & ENVIRONMENTAL | HEAD OFFICE ÅRHUS | CHAIRMAN KAJ THORÉN | CEO JESPER ØHLENSCHLÆGER
WEBSITE WWW.SKYKON.COM | SALES 2009 N/A | EMPLOYEES 2009 367
39
EQT FUNDS ANNUAL REVIEW 2009
In December 2009, EQT V reached an agreement with private
equity houses Candover and Cinven to take over the ownership
of German academic publisher Springer Science+Business
Media (Springer SBM). The acquisition was made in co-operation
with GIC Special Investments, the private equity arm of the
Government of Singapore Investment Corporation, which holds
18% of the equity.
In order to reduce the leverage in the group, EQT V injected
EUR 450 million in new equity, which paved the way for a
refi nancing of the group’s debt structure. Deep understanding
of the company came from close ties with both EQT professionals
and the EQT Industrial Network and enabled EQT to offer a robust
package of equity and debt fi nancing, which secured the deal.
Springer SBM is the world’s second largest publisher of
scientifi c, technical and medical journals by titles and the largest
publisher of scientifi c, technical and medical books. Springer is
also the largest specialist information provider in German-speaking
countries. The group has 55 publishing houses in 20 countries
and employs more than 5,000 people. It produces approximately
2,000 journals and more than 6,500 new book titles every year.
Titles include the Journal of Materials Science, Applied Microbiology
and Biotechnology, and Diabetologia. Springer SBM was created
in 2003 through the merger of Kluwer Academic Publishers and
BertelsmannSpringer.
Springer SBM has a very strong market position and is the number
1 or 2 in the markets where it is active. In addition, 94% of journal
revenues and around 30% of book revenues are subscription
based or annually contracted.
With the new fi nancial structure in place, EQT plans to
accelerate the company’s move towards an online database
model, providing integrated access to electronic content of both
journals and books.
There are also substantial cost savings to be made from
shifting the printing of books from offset printing to outsourced
print-to-order production.
In combination with the migration to an online database
model and print-to-order production, further investments are
planned to grow the number of scientifi c book titles substantially
and efforts will be made to expand in emerging markets.
EQUITY EQT V – SIGNED IN DECEMBER 2009
Acquisition of Springer Science+Business MediaEQT provided fresh equity capital to deleverage Springer Science+Business Media and to
drive online growth.
Springer Science+Business Media TROIKA: Derk Haank, CEO. Marcus Brennecke, Partner EQT Partners. Manfred Wennemer, Chairman.
EQT FUNDS ANNUAL REVIEW 2009
40
SPRINGER SCIENCE+BUSINESS MEDIA S.A. IN BRIEF
SECTOR MEDIA | HEAD OFFICE LUXEMBOURG | CHAIRMAN MANFRED WENNEMER | CEO DERK HAANK
WEBSITE WWW.SPRINGER.COM | SALES 2009 EUR 845 MILLION | EMPLOYEES 2009 5,176
41
EQT FUNDS ANNUAL REVIEW 2009
EQT Infrastructure had Swedegas on its radar for quite some time.
When the four energy companies that owned Swedegas declared
that they were willing to sell, the EQT Infrastructure Fund was
well prepared to put in a bid. Swedegas was the kind of investment
that would fi t nicely with the Fund’s investment strategy.
With extensive help from Industrial Network members
who have deep knowledge of the industry, EQT Infrastructure
established that the potential in Swedegas was very attractive. In
addition, EQT’s local roots and deep understanding of the local
business and political environment played a key role. Network
members Kurt Håkansson and Pär Nuder, a former Swedish
minister of fi nance, will be on the Board of Swedegas together
with Lars Frithiof as Chairman.
The company owns and operates the largest part of Sweden’s
gas transmission network located in southern and western
Sweden and was sold by E.ON Ruhrgas, Statoil, DONG Energy
and Fortum.
Swedegas is regulated by the Swedish Energy Markets
Inspectorate and holds government concessions for its
transmission network.
Swedegas transports natural gas in its network from Dragør, the
only interconnection of Sweden with Denmark and the extended
European gas transmission network. This could in the future play
a key role when developing the Swedish biogas potential.
Although only around 2% of Sweden’s total energy supply
comes from natural gas, in the southern and western parts of
Sweden it accounts for about 20%. It plays a vital role in the
supply of both energy and industrial feed stock in the region.
EQT sees opportunities in supporting industries to replace
oil with natural gas as fuel, thus reducing their environmental
footprint. By replacing oil with natural gas, the emission of the
greenhouse gas CO2 can be reduced by more than 25%.
EQT INFRASTRUCTURE – SIGNED IN DECEMBER 2009
Debut Investment in Gas TransmissionEQT Infrastructure agreed to acquire Sweden’s largest natural gas transmission network
owner Swedegas from four energy companies. EQT sees good opportunities in improving
and expanding the operations.
Swedegas TROIKA: Stefan Glevén, Director EQT Partners. Lars Gustafsson, CEO. Lars Frithiof, Chairman.
EQT FUNDS ANNUAL REVIEW 2009
42
SWEDEGAS AB IN BRIEF
SECTOR ENERGY & ENVIRONMENTAL | HEAD OFFICE GOTHENBURG | CHAIRMAN LARS FRITHIOF | CEO LARS GUSTAFSSON
WEBSITE WWW.SWEDEGAS.SE | SALES 2009 SEK 243 MILLION | EMPLOYEES 2009 24
43
EQT FUNDS ANNUAL REVIEW 2009
Bodilsen was acquired in November 2006 for
DKK 1 million by the EQT Opportunity Fund.
In connection with the change of ownership,
approximately DKK 100 million was injected
while lenders wrote off DKK 190 million, leaving
around DKK 300 million of debt in the company.
At the time of the transaction Bodilsen was already in severe
distress but there was still an opportunity to bring Bodilsen back
to profi tability.
Operations were streamlined and made less complex and
commercial partnerships with major customers deepened. Fixed
costs were reduced and subsidiaries in China, Estonia, UK and
the US were closed, sold or scaled back. In 2008 EQT Opportunity
Fund also injected an additional DKK 36 million into the company.
The company made a small operating profi t in 2008 after having
incurred losses since 2003.
However, a very sharp and fast decline in demand due to the
economic crisis hit the company hard and Bodilsen’s fi nancial
performance and capital structure became unsustainable.
Attempts to reach a mutual agreement with the company’s lenders
for a fi nancial reconstruction were unsuccessful and in the view
of Bodilsen’s Board, the company had no other option than to
fi le for bankruptcy.
EQT OPPORTUNITY – EXIT IN JUNE 2009
Market Slump Hits BodilsenIn June, Danish furniture manufacturer Bodilsen fi led for bankruptcy after several
attempts to avoid an insolvency situation proved unsuccessful.
In December 2005, Nordic private equity group
Altor acquired PaloDEx from General Electric in
a carve-out transaction. EQT Expansion Capital
I provided the majority of the mezzanine
fi nancing and acted as facility agent for the
mezzanine facility.
PaloDEx is a leading manufacturer of analog and digital imaging
systems for extra-oral and intra-oral dental applications. It also
produces computed radiography systems for digital image capture.
During the holding period, PaloDEx showed healthy growth in sales
and EBITDA. In November 2009 it was acquired by US group
Danaher Corporation in a trade sale, forming a global market
leader in digital imaging equipment for the dental industry.
EQT EXPANSION CAPITAL I – EXIT IN NOVEMBER 2009
Danaher Acquires PaloDExFinnish dental imaging group PaloDEx was acquired by US group Danaher Corporation.
EQT FUNDS ANNUAL REVIEW 2009
44
The Board of Directors (BoD) of the General Partner (GP) makes
investment and exit decisions, based on recommendations from
the Investment Advisory Committee and advice from the investment
advisor. The Investment Advisory Committee (IAC) evaluates and
makes recommendations to the GP as to whether or not to follow
the advice given by the investment advisor.
Fund GovernanceThe guidelines for the governance of the EQT funds are set out in the legal documentation
entered into between the respective fund and its investors. Each EQT fund has a General
Partner with its own Board of Directors and Investment Advisory Committee.
MEMBERS OF INVESTMENT ADVISORY COMMITTEES AND BOARD OF DIRECTORS OF THE EQT FUNDS
NAME POSITION FUND FORUM
Koh Boon Hwee ex Singapore Telecom Group EQT Greater China II IAC
Claes Dahlbäck ex Investor ABEQT III, EQT IV, EQT V, EQT Expansion Capital II,
EQT Greater China II, EQT OpportunityIAC
John Evangelides ex HSBC EQT Expansion Capital I IAC
Bjørn Høi Jensen ex EQT Partners EQT V IAC
Dr. Michael Kaschke Carl Zeiss Group EQT Expansion Capital II IAC
Prof. Dr.-Ing. Hans-Peter Keitel ex Hochtief EQT Infrastructure IAC
Prof. Dr. Jürgen Kluge Franz Haniel & Cie GmbH EQT V, EQT Greater China II IAC
Henning Kruse-Petersen ex NykreditEQT Expansion Capital I, EQT Expansion Capital II,
EQT OpportunityIAC
Robert Lewis ex General Electric EQT Infrastructure IAC
Göran Lundberg ex ABB EQT III, EQT IV, EQT Infrastructure IAC
Dr. Claus Löwe ex JP Morgan EQT Expansion Capital I, EQT Expansion Capital II IAC
Massimo Rossi ex Swedish MatchEQT II, EQT III, EQT IV, EQT V, EQT Opportunity,
EQT Greater China IIIAC
Charlotte BakerAccounts Manager
EQT Funds Management LimitedEQT I, EQT Expansion Capital I, EQT Expansion Capital II BoD
Nigel GovettDirector
EQT Funds Management Limited
EQT I, EQT III, EQT IV, EQT V, EQT Greater China II,
EQT Infrastructure, EQT OpportunityBoD
Michael NewtonManaging Director
EQT Funds Management Limited
EQT I, EQT III, EQT IV, EQT V, EQT Greater China II,
EQT Infrastructure, EQT Opportunity, EQT Expansion
Capital I, EQT Expansion Capital II
BoD
Matthew TullierSenior Administrator
EQT Funds Management LimitedEQT I, EQT Expansion Capital I, EQT Expansion Capital II BoD
Dêon Van der PloegManaging Director
EQT Amsterdam
EQT II, EQT III, EQT IV, EQT V, EQT Danmark,
EQT Finland, EQT Greater China II, EQT Opportunity,
EQT Infrastructure
BoD
Patrick WeberManaging Director
EQT ZurichEQT Expansion Capital I, EQT Expansion Capital II BoD
45
EQT FUNDS ANNUAL REVIEW 2009
EQT FUNDS ANNUAL REVIEW 2009
46
EQT PARTNERS IN BRIEF
264
1
2
3
5
6
7
8
9
12
11
13 17
18
24
25
19
20
21
22
23
10 14
15
16
1. THOMAS VON KOCH • 2. PAUL DE ROME • 3. CHRISTIAN PUSCASIU • 4. ÅSA HALLERT • 5. PATRICK DE MUYNCK • 6. PETRI SANDELL • 7. THOMAS RAMSAY
8. SAMIR KAMAL • 9. PIOTR CZAPSKI • 10. FREDRIK ÅTTING • 11. MARTIN MOK • 12. JENS MORITZ • 13. LENNART BLECHER • 14. PETER KORSHOLM
15. UDO PHILIPP • 16. CASPAR CALLERSTRÖM • 17. JAN STÅHLBERG • 18. CONNI JONSSON • 19. ANDREAS HUBER • 20. HARRY KLAGSBRUN • 21. MICHAEL FÖCKING
22. TOMAS AUBELL • 23. MORTEN HUMMELMOSE • 24. GLEN MATSUMOTO • 25. CHRISTIAN SINDING • 26. SUMEET GULATI
NOT PICTURED: SIMON GRIFFITHS AND MARCUS BRENNECKE
Partners
CONNI JONSSON
Managing Partner
Part of the team that founded
EQT Partners in 1994 and
Managing Partner since foundation
LENNART BLECHER
Partner and Head of EQT Infrastructure
Joined EQT Partners in April 2007
MICHAEL FÖCKING
Partner and Head of EQT Expansion Capital
Joined EQT Partners in August 2002
THOMAS VON KOCH
Partner and Head of EQT Equity
Part of the team that founded
EQT Partners in 1994
HANS RAGNESJÖ
Chief Financial Offi cer
Joined EQT Partners in April 2009
PAUL DE ROME
Partner and Head of EQT Credit
Joined EQT Partners in April 2008
JUSSI SAARINEN
Head of Investor Relations
Joined EQT Partners in January 2008
JAN STÅHLBERG
Partner and Deputy CEO
Part of the team that founded
EQT Partners in 1994
FREDRIK ÅTTING
Partner and Managing Director of
EQT Partners Asia Ltd
Joined EQT Partners in November 1994
EOLA ÄNGGÅRD RUNSTEN
Head of Human Resources
Joined EQT Partners in November 2007
EQT Partners Management
47
EQT FUNDS ANNUAL REVIEW 2009
EQT Partners Offi ces
EQT FUNDS ANNUAL REVIEW 2009
48
EQT PARTNERS A/S
Dampfærgevej 27–29, 3rd Floor
DK-2100 Copenhagen Ø
Denmark
Phone: +45 33 12 12 36
Fax: +45 33 12 18 36
Visiting Address:
Dampfærgevej 27–29, 3rd Floor
EQT PARTNERS BETEILI-
GUNGSBERATUNG GMBH
Taunusanlage 16
D-60325 Frankfurt
Germany
Phone: +49 69 247 045 0
Fax: +49 69 247 045 122
Visiting Address:
Taunusanlage 16
(Access via Guiollettstraße)
EQT PARTNERS OY
Pohjoisesplanadi 25 A
FI-00100 Helsinki
Finland
Phone: +358 9 69 62 47 0
Fax: +358 9 69 62 47 10
Visiting Address:
Pohjoisesplanadi 25 A
EQT PARTNERS
ASIA LTD
1701 Hutchison House
10 Harcourt Road
Central, Hong Kong
China
Phone: +852 2801 6823
Fax: +852 2810 4188
+852 2810 4909
Visiting Address:
1701 Hutchison House
10 Harcourt Road
EQT PARTNERS UK
ADVISOR LLP
3rd Floor
41–44 Great Queen Street
London WC2B 5AD
UK
Phone: +44 207 430 5510
Visiting Address:
3rd Floor
41–44 Great Queen Street
EQT PARTNERS
SHANGHAI LTD
Unit 1606, 16/F Tower II, Plaza 66,
1366 Nanjing West Road,
Shanghai 200040
China
Phone: +8621 6113 5868
Fax: +8621 6113 5866
Visiting Address:
Unit 1606, 16/F Tower II,
Plaza 66, 1366 Nanjing West
Road
EQT PARTNERS INC
One North Lexington Avenue
11th Floor
White Plains, NY 10601
USA
Phone: +1 914 220 0900 ext 304
Fax: +1 914 428 0649
Visiting Address:
One North Lexington Avenue,
11th Floor
EQT PARTNERS AG
Bahnhofstraße 61
CH-8001 Zurich
Switzerland
Phone: +41 44 266 68 00
Fax: +41 44 266 68 10
Visiting Address:
Füsslistraße 2
EQT PARTNERS BETEILI-
GUNGSBERATUNG GMBH
Leopoldstraße 8
D-80802 Munich
Germany
Phone: +49 89 25 54 99 00
Fax: +49 89 25 54 99 99
Visiting Address:
Leopoldpalais
Leopoldstraße 8
EQT PARTNERS AB
P.O. Box 16409
S-103 27 Stockholm
Sweden
Phone: +46 8 506 55 300
Fax: +46 8 506 55 319
Visiting Address:
Hovslagargatan 3
EQT PARTNERS AS
P.O. Box 1241 Vika
N-0110 Oslo
Norway
Phone: +47 23 23 75 50
Fax: +47 23 23 75 60
Visiting Address:
Dronning Mauds gate 1
EQT PARTNERS
SINGAPORE PTE. LTD
80 Raffl es Place #44-02
UOB Plaza 1
Singapore 048624
Phone: +65 6595 1830
Fax: +65 6535 0062
Visiting Address:
80 Raffl es Place #44-02
UOB Plaza 1
(From July 2010)
EQT PARTNERS
SP. Z O.O.
Grzybowska 5A
00-132 Warsaw
Poland
Phone: +48 22 324 58 28
Fax: +48 22 324 58 38
Visiting Address:
Grzybowska Park, 7th Floor
Grzybowska 5A St
EQT Funds Management LimitedP.O. Box 269 | National Westminster House | Le Truchot | St Peter Port | Guernsey | GY1 3RA
EQT Management S.à r.l.23, Rue Aldringen | L-1118 Luxembourg | Grand Duchy of Luxembourg
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