EQT

"IK’s headquarters differ from EQT’s, Nordic’s and Altor’s not only because the interior design and architecture are older and more grandiose, but also because there are more “tombstones” in the meeting rooms than at any of the competitors. These “tombstones,” which is a strange name, are a kind of glass trophy that are made after a deal. They stand as monuments to historical successes. But most of those who made the deals at IK are no longer there. Of those who were present during the early days, in 2013 there was only one person left besides the founder Björn Savén. And Savén has moved back to London."

"But EQT’s best deal so far, one of the best ever made in Europe according to Conni Jonsson, was German Tognum. It yielded a profit equivalent to more than forty times the invested capital. Tognum built diesel engines, but the previous owner, Daimler-Chrysler, had let the subsidiary idle for a while. EQT made sure to use the expertise available in Tognum to broaden sales. They invested in a new generation of engines, targeted new markets, for example engines for large boats and ships, and thus increased both profit and sales. So how did EQT, a rather young and unknown company, manage to get to the negotiating table? The seller, the newly merged automotive group Daimler-Chrysler, mainly wanted to avoid the business ending up with their worst competitor, the truck manufacturer MAN. The bidder Carlyle was not a suitable buyer either, since Tognum had business with Cuba, a red flag for American companies. Instead, it became the little EQT. But they weren’t completely unknown, after all, Investor was a major shareholder in Daimler’s competitor Scania. It became an important deal not only because it was profitable, but because it marked an entry into the German market. Now, people there knew who the EQT people were when they called and wanted to do business."

"One evening, the founders sat together with a couple of brand consultants to brainstorm over a few beers about a name for the company. Thomas von Koch noticed that the new radio channel “Energy” is spelled NRJ, so it was apparent that “equity,” which is what they were involved in, would become EQT. The first fund raised 3.2 billion, with Investor and AEA each contributing 15 percent, and the rest of the capital coming from, among others, the AP funds. “We envisioned developing an industrial model of private equity, and that we could leverage the Wallenberg network. We didn’t have any more long-term plan than that,” says Conni Jonsson."

"But EQT’s best deal so far, one of the best ever made in Europe according to Conni Jonsson, was German Tognum. It yielded a profit equivalent to more than forty times the invested capital. Tognum built diesel engines, but the previous owner, Daimler-Chrysler, had let the subsidiary idle for a while. EQT made sure to use the expertise available in Tognum to broaden sales. They invested in a new generation of engines, targeted new markets, for example engines for large boats and ships, and thus increased both profit and sales. So how did EQT, a rather young and unknown company, manage to get to the negotiating table? The seller, the newly merged automotive group Daimler-Chrysler, mainly wanted to avoid the business ending up with their worst competitor, the truck manufacturer MAN. The bidder Carlyle was not a suitable buyer either, since Tognum had business with Cuba, a red flag for American companies. Instead, it became the little EQT. But they weren’t completely unknown, after all, Investor was a major shareholder in Daimler’s competitor Scania. It became an important deal not only because it was profitable, but because it marked an entry into the German market. Now, people there knew who the EQT people were when they called and wanted to do business."

"Com Hem was founded in 1983 under the name “Televerket kabel-tv.” In 1999 the company got its current name, and in 2003 the loss-making operation was sold to EQT. When they took over, profits increased by 100 million kronor in just a few weeks simply because the new owners made sure the company contacted a group of suppliers and renegotiated the prices of the services they bought. No one had done that before. Things cost what they cost. But what especially increased the value was that EQT built and launched “triple play”: cable, broadband, and telephony in one service."

"Within a year, Findus went from loss to a small profit, and in 2006 EQT finally managed to sell it on to the British private equity firm Capvest. Capvest thought much the same as EQT had, aiming for growth through acquisitions. A larger company is worth more, provided it makes money. They bought and merged Findus with the British Bluecrest, which sells frozen seafood."

"“We saw that there were many medium-sized companies that needed owners when the conglomerates were streamlined. EQT’s first acquisition was Brukens, which we bought from the steel group Böhler Uddeholm in 1995. Brukens hadn’t been managed with the left hand, it hadn’t even been managed with the left little finger. They needed a new owner.”"

"“It’s very much about avoiding the worst and second-worst quartile funds, avoiding deadweights,” says Bengt Hellström, head of alternative investments at the Third Swedish National Pension Fund, formerly a partner at EQT."