EQT has launched the EQT Future impact fund.
EQT Future is an impact-driven longer-hold fund which will apply EQT’s active ownership model to accelerate sustainable transformation of companies alongside creating attractive risk adjusted returns.
EQT says the fund will invest in mature, high-quality companies with market-shaping impact potential and where transformation requires a longer ownership horizon. Investments will be made in line with three key objectives i) Planet (safeguard resources and protect our climate), ii) People (improve mental and physical health), and iii) Prosperity (create equality of opportunity).
The fund will deploy an Impact Acceleration Plan for all its portfolio companies to achieve the ambitious asset-specific and portfolio-level KPIs. These are, namely, i) reduction of GHG emissions using the Science Based Targets, ii) improved employee wellbeing through industry top-quartile eNPS (Net Promoter Score), iii) and increased gender diversity where progress will be tracked towards a 50 percent split within the top 20 percent of earners in each company. Up to 20 percent of EQT Future’s total carried interest will be linked to achieving the portfolio-level KPIs.
Christian Sinding, CEO and Managing Partner of EQT, said, “EQT Future is an important strategic move for EQT as a firm. Together with our Science Based Targets and EQT Future’s impact-driven investment thesis, we are raising the bar for EQT and all our investment strategies. By combining EQT Future with our firm-wide approach to embed positive impact into every investment, we have the best possible foundation to grasp the most exciting opportunity, and responsibility, of our time – to support businesses that can accelerate transformational change for the benefit of the environment and society at large.”