PE Firm EQT Eyes More 2025 IPOs, Citing ‘Bright and Open’ Market

This content was published on January 23, 2025 - 16:28

2 minutes

(Bloomberg) — Swedish private equity firm EQT AB is looking to take advantage of an improving stock market to monetize more exits via initial public offerings, following a strong run in 2024.

“We have a handful of IPOs planned for the year,” Chief Executive Officer Christian Sinding said in an interview Thursday, after the company reported full-year results. “It depends on market conditions, but we are prepared to surf the wave.”

EQT was “the most active private markets firm globally in terms of public market transactions, including IPOs and selldowns,” the company said in its year-end report. The company last year listed skincare firm Galderma Group AG in Zurich, energy service provider Kodiak Gas Services Inc. and health-care payments software firm Waystar Holding Corp. in New York, as well as health care services firm Sagility India Ltd. in Mumbai.

“Markets are bright and open, and we have several companies that are ripe for exit,” Sinding said. “Public markets still have a lot of challenges but the companies we took public last year performed well, that was down to their size, liquidity and the quality.”

IPO activity is expected to rebound this year after a subdued few months, as rising stock markets tempt issuers to resume or accelerate their listing preparations. Private equity firms are also set to come back as they seek ways to return more cash back to their investors.

“What we need is for private markets to innovate so we can exit through private markets, but also a functioning public market,” he said. EQT raised $8.6 billion via public markets last year.

The firm expects dealmaking to ramp up this year, backed by strong credit markets, and more willing strategic buyers and family offices, according to Sinding.