EQT Agrees to Acquire Stockbridge With $375 Million Upfront Payment
The deal would add Stockbridge’s real estate strategies to EQT’s platform, with additional payments tied to performance targets through 2030.
Key takeaways
- EQT agreed to acquire Stockbridge for $375 million in cash at closing.
- Up to $175 million in earnout payments may be payable from 2027 to 2030.
- The transaction is expected to close in the first quarter of 2027, subject to conditions.
EQT has agreed to acquire U.S. real estate investment manager Stockbridge, with a base cash payment of $375 million at closing. The deal is expected to close in the first quarter of 2027, subject to customary conditions, including investor consents.
EQT said up to a further $175 million may be payable in earnouts from 2027 to 2030. Those payments depend on performance targets related to raising fee-paying commitments for new products. Stockbridge has about $16.5 billion in fee-generating assets under management.
The acquisition is intended to broaden EQT Real Estate’s strategies, including in industrial investments, Industrial Outdoor Storage and alternative living. Stockbridge’s diversified and alternative strategies are expected to operate as a dedicated business line, while its industrial capabilities will join EQT’s existing industrial platform.
Stockbridge senior management has committed to reinvest half of its proceeds in EQT shares purchased after closing, the firms said. Stockbridge CEO Terry Fancher is set to become vice chair of EQT Real Estate.
EQT said Stockbridge is expected to contribute $35 million to $45 million in fee-related EBITDA in 2027, with annual growth of 15% to 20% expected in the coming years. These are company estimates.
At 07:14 UTC on Oct. 15, EQT shares traded at SEK 285.40, up 1.35% since the previous close.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
