From Sweden with love: A $5-billion EQT bonanza for India

livemint.com:

MUMBAI : After investing about $2 billion in India last year, Swedish private equity firm EQT is lining up deals that could lead to another $5 billion worth of investments in the country this year. EQT got its first taste of India in October 2022 after it acquired Baring Private Equity Asia—which once owned Hexaware Technologies Ltd—and has since signalled a strong investment appetite for the country.

“At the moment, I have to say that our pipeline is as active as I've ever seen it," Jean Eric Salata, chairperson of EQT Asia and the firm’s head of private capital for Asia, said in an interview with Mint. “We currently have $5 billion worth of pipeline in advanced stages of final negotiation for investment (in India) this year.

That shows the kind of activity level we are seeing," added Salata, who had started UK-based Baring’s Asia PE investment before leading a management buyout of the programme in 2000. EQT, which has over $250 billion of assets under management globally, is among the largest private equity firms in Asia.

India’s economic growth at 7-8% a year makes the country a compelling investment destination for firms like EQT, Salata said. Further, EQT’s expansion in the country is also because it is now looking at multiple sectors such as healthcare and financial services in addition to its historic preference for IT services, where it has struck gold multiple times before.

Last year, in June, EQT (then known as BPEA EQT) acquired a 60% stake in in-vitro fertilisation chain Indira IVF in a deal valuing the business at about $1.1 billion. A month later, EQT and India-based PE firm ChrysCapital announced the acquisition of a 90% stake in Credila Financial Services from HDFC, valuing the business at ₹10,300 crore,