Sweden's EQT Group to invest $50B in India by 2030
What's the story
Swedish private equity firm EQT Group has announced plans to invest $50 billion in India by 2030. The investment will be focused on building data centers and other key infrastructure projects, including renewable energy initiatives. Jean Eric Salata, the Chairman of EQT Group, said that this is a much larger commitment than what he would have anticipated 18-24 months ago due to the capital-intensive nature of data center and energy businesses.
Investment approach
At least $2B annually until 2030
EQT Group plans to invest at least $2 billion annually in India until 2030.
The firm intends to acquire companies across various sectors, including industrial manufacturing, pharmaceuticals, financial services, and sports franchises.
Salata said the firm's investment in data centers alone is about $10 billion since December 2024.
EQT-backed EdgeConneX has also partnered with Adani Group to create green data center capacity in India through a joint venture established in 2021.
Market perspective
Record fundraise for EQT Group
Despite global volatility, EQT Group raised a record $15.6 billion for BPEA IX fund in April, making it the largest private equity fund in the region.
Salata said last year saw record returns with $40 billion of distributions returned to clients, equivalent to about 30% of net asset value (NAV).
He added that while the industry average is closer to 10%, they were at 30% capital return, which has helped them raise funds.
Investment potential
Potential for investment in India
Hari Gopalakrishnan, EQT's co-head of private capital in Asia, said that despite the current economic climate, the firm sees a lot of potential for investment in India.
He noted that last year's total buyout volumes were less than $15 billion but if that returns at least 2x by 2030, the market could be worth $50 billion.
Gopalakrishnan also highlighted interesting sub-sectors emerging in pharmaceuticals and financial services, such as contract manufacturing or asset management.