EQT to acquire US real estate manager Stockbridge for up to $550m
EQT has agreed to acquire US real estate investment manager Stockbridge for an initial $375m, with additional performance-related payments potentially increasing the consideration to $550m, according to a report by Reuters.
EQT has reached an agreement to acquire US real estate investment manager Stockbridge for an initial sum of $375 million, with the possibility of additional performance-related payments raising the total consideration to $550 million, as reported by Reuters. This deal will give EQT full ownership of Stockbridge's management company and general partner entities, as well as the right to invest in 35% of future Stockbridge funds' carried interest.
Stockbridge manages around $16.5 billion in fee-generating assets and has a gross asset value of $27 billion, with investments primarily in US real estate sectors, particularly industrial and residential properties.
The initial $375 million consideration is expected to be financed through cash on EQT's balance sheet. Meanwhile, Stockbridge's senior management will reinvest half of their proceeds into EQT shares, which will be subject to lock-up periods extending from 2029 to 2031. In addition to the initial payment, EQT has reportedly agreed to pay up to $175 million in additional performance-related payments between 2027 and 2030, contingent on Stockbridge meeting certain performance targets.
Stockbridge is projected to generate between $35 million and $45 million in fee-related EBITDA in 2027, with a margin of 30% to 35%. It is also expected to experience annual growth of 15% to 20% in the years following. The acquisition is anticipated to be finalized in the first quarter of 2027.
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