Conni Jonsson, a Swedish billionaire with humble beginnings on a family farm, has defied expectations throughout his career. Initially intending to pursue agricultural science, his academic path redirected him towards accounting and finance, leading him to establish EQT in 1994. This seemingly fortuitous detour laid the groundwork for Jonsson’s remarkable success in the world of private equity. From its modest origins, EQT, under Jonsson’s leadership, has grown to become Europe’s largest private equity firm, currently managing a staggering $248 billion in assets. Jonsson’s journey exemplifies the power of adaptability and a fearless approach, traits he honed from his rural upbringing and attributes he continues to instill in the firm’s new recruits.
Jonsson’s entrepreneurial journey began to take shape during his time at Investor AB, the holding company for the influential Wallenberg family. His experience in New York, observing the burgeoning leveraged buyout landscape of the late 1980s, significantly influenced his vision for EQT. Witnessing the transformative deals of that era, particularly KKR’s acquisition of RJR Nabisco, sparked Jonsson’s ambition to establish a similar buyout-focused firm in Europe. He meticulously studied the strategies employed by established firms like Warburg Pincus and AEA Investors, absorbing the intricacies of their operations and deal-making prowess. Upon his return to Sweden, Jonsson successfully persuaded Investor AB to back his vision, securing the crucial support of the Wallenberg family and setting the stage for EQT’s launch.
The initial years of EQT focused primarily on the Nordic region, allowing the firm to establish a strong foundation and refine its investment approach. One of EQT’s early pivotal deals involved the acquisition of Tognum, a German manufacturer of heavy-duty diesel engines, from Daimler. This transaction demonstrated Jonsson’s bold decision-making and EQT’s ability to identify undervalued assets and implement strategic improvements to drive significant returns. The success of the Tognum deal served as a catalyst for EQT’s expansion beyond Sweden, validating Jonsson’s belief in the firm’s potential to compete on a larger international stage. It marked a turning point in EQT’s trajectory, propelling the firm towards its ambitious global aspirations.
EQT’s growth trajectory accelerated significantly following its 2019 IPO, with its assets under management increasing sixfold. This growth is attributable to both successful fundraising efforts and strategic acquisitions that have expanded the firm’s geographical reach and investment capabilities. The acquisition of Exeter Property Group in the United States bolstered EQT’s real estate portfolio, while the purchase of Baring Private Equity Asia solidified its presence in the rapidly growing Asian market. These strategic moves reflect Jonsson’s ambition to position EQT as a leading global private equity player, competing head-to-head with American giants like Blackstone and KKR.
EQT’s current strategic focus centers on Asia, particularly India, which Jonsson views as offering the most promising growth opportunities in the short to medium term. The firm’s recent exits from investments in India, such as the sale of IT services firm Coforge and the IPO of healthcare tech firm Sagility India Limited, highlight its successful track record in the region. With $50 billion in dry powder, EQT is well-positioned to capitalize on the dynamic Asian markets and continue its expansion. This substantial capital reserve empowers EQT to pursue large-scale investments and further solidify its position as a dominant force in the Asian private equity landscape.
Despite facing headwinds in the stock market and choosing to forgo participation in the booming private credit market, Jonsson remains steadfast in his commitment to EQT’s core strategy of acquiring and actively managing companies. He views private credit as a departure from EQT’s ownership-focused approach and expresses concerns about the potential risks associated with the sector’s rapid growth and lack of regulation. This cautious stance, while potentially impacting short-term returns, reflects Jonsson’s long-term vision for EQT as a leading global private equity firm focused on building sustainable value through active ownership and operational improvements. His conviction in this strategy, even in the face of market trends, underscores his unwavering belief in the firm’s differentiated approach to private equity investing.
