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Bridgepoint acquires EQT’s credit business

EQT has agreed to sell its €4 billion credit division following a strategic review.

EQT has sold its €4 billion credit division to London-based Bridgepoint. EQT Credit will be combined with the buyer’s own credit business to create an entity with around €7 billion in assets under management. The deal will boost the Bridgepoint’s presence in the Nordics, Germany and the US.

Set up in 2008, EQT Credit is the Swedish firm’s smallest division, representing 10% of its total AUM and 6% of its revenue. The business focuses on special situations, direct lending and senior debt.

EQT had appointed JP Morgan to conduct a review of the credit business in January. In a quarterly announcement, COO Caspar Callerström said that the business’ growth prospects were in areas outside of EQT’s core strategy and that the firm was looking to reduce the complexity of its operations.

The credit business reported €35.8 million of total revenue in 2019 and has 40 employees. So far, the business has raised €7 billion for funds, with its most recent vehicle, EQT Credit Opportunities III, closing on €1.3 billion in 2017. The division has provided financing to businesses including merchant services provider Paymentsense and automobile parts designer Metalcaucho.

EQT, the largest Nordic buyout firm, completed its initial public offering less than a year ago. The investor has around €40 billion in AUM and invested €1.8 billion in Q1 this year, €600 million of which was in the credit segment. The firm is currently fundraising for its ninth flagship fund—targeting €14.75 billion—which has been delayed by the COVID-19 crisis.

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    Written by Leah Hodgson
    Leah Hodgson is a London-based senior reporter for PitchBook covering venture capital across Europe and the Middle East. Leah graduated from the University of Surrey with a BA in international politics with French. She has previously been a radio reporter in France. She later turned to financial journalism, covering the wealth management industry. She joined PitchBook in 2018.
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