EQT agrees to buy US real estate manager Stockbridge for $375 million

By Reuters News

Oct 15 (Reuters) - EQT EQTAB.ST has agreed to buy US real estate investment manager Stockbridge for an initial consideration of $375 million, the Swedish private equity firm said on Thursday.

Here are more details:

  • Under the deal, EQT will take full ownership of Stockbridge’s management company and general partner entities and be entitled to invest in 35% of carried interest in all future Stockbridge funds.

  • EQT will fund the $375 million in cash from its balance sheet. Stockbridge's senior management will reinvest half of the proceeds in EQT shares locked up until 2029-2031.

  • The Swedish firm could pay up to an additional $175 million over 2027-2030, subject to Stockbridge meeting its performance targets, with a portion of those payments to be reinvested in EQT shares under lock-up arrangements.

  • Stockbridge is expected to generate $35 million to $45 million in fee-related EBITDA in 2027, at a 30%-35% margin with that figure growing 15%-20% annually thereafter.

  • Stockbridge has approximately $16.5 billion in fee-generating assets under management and $27 billion in gross asset value. It invests across major US real estate types, with a focus on industrial and residential living.

  • The deal is expected to close in the first quarter of 2027.

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