A massive wave of capital expenditure is underway, fueled by the concurrent needs of building AI infrastructure, reindustrializing Western economies, and transitioning to new energy sources. This creates a powerful, multi-decade tailwind for investment.
With US assets potentially over-concentrated in many portfolios, there is a growing institutional demand for exposure to non-US markets. EQT's strategy focuses heavily on Europe and Asia, which offer different growth drivers and potential for outperformance.
Markets like Japan, South Korea, and India are becoming major investment hubs. Japan is experiencing a buyout boom due to shareholder activism, Korea is a key beneficiary of the AI supply chain, and India is EQT's largest market due to demographic growth.
The private equity industry is consolidating, with a clear trend towards larger, multi-product, global-scale firms. The merger of Baring PE Asia and EQT exemplifies this move to create a more robust, diversified platform capable of executing large, complex deals.
The lines between public and private markets are blurring as companies stay private for longer. This is fueling the growth of the secondaries market, which is evolving from a niche liquidity solution to a mainstream strategy for accessing private assets.
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