The European Commission has appointed Swedish investment firm EQT to manage its new €5bn Scaleup Europe Fund. EQT emerged as the winner following a closely-watched selection process that included top-tier regional rivals such as the UK’s Atomico and France’s Eurazeo. The fund is strategically designed to bolster European deeptech startups specializing in high-impact technologies like quantum computing and artificial intelligence.
EQT has proposed partners Ted Persson and Victor Englesson as co-heads of the fund's advisory team, with EQT’s Christian Sinding proposed to chair the investment committee. As of late last year, approximately €2.5bn of the fund's capital had been committed. This includes a €1bn contribution from the European Innovation Council (EIC) and an additional €1.5bn from private Limited Partners (LPs), such as Novo Holdings, CriteriaCaixa, Santander/Mouro Capital, APG Asset Management, and Sweden’s Wallenberg family.
The race to manage the prestigious fund was ultimately narrowed down to EQT and London-based firm Atomico. The broader initial list of contenders included Eurazeo and Vitruvian. Qualified applicants were required to demonstrate a track record of managing at least €500m in assets and having successfully launched at least two previous funds. Bloomberg was the first to report that EQT had secured the mandate.
While EQT was long considered the frontrunner, the firm faced some scrutiny earlier this year regarding the appointment of Lars Frølund, a former Commission adviser who joined EQT as a part-time external advisor. Addressing concerns raised to the EU’s startup commission, an EQT spokesperson stated that the firm 'strictly adheres to all applicable disclosure and governance rules,' noting that Frølund is one of hundreds of external consultants utilized by the organization.
