EQT AB to Acquire U.S. Real Estate Manager Stockbridge for $375 Million
Swedish private equity group EQT AB (OMXSTO:EQT) has signed an agreement to acquire Stockbridge, a San Francisco-based real estate investment manager overseeing roughly $16.5 billion in fee-generating assets under management. EQT AB will pay an upfront cash base consideration of $375 million funded from its balance sheet, alongside potential performance-based earnout payments of up to $175 million payable between 2027 and 2030.
The transaction expands EQT AB's real estate division across the U.S. market by adding established capabilities in industrial property, alternative living assets such as manufactured housing, and open-ended core strategies. Under the agreement terms, Stockbridge's senior management shareholders will reinvest half of their cash proceeds into EQT AB ordinary shares purchased on the open market, which will be subject to multi-year lock-up arrangements.
The acquisition is expected to close in the first quarter of 2027, pending standard closing conditions and investor consents. Stockbridge is projected to deliver $35 million to $45 million in fee-related earnings before interest, taxes, depreciation, and amortization in 2027. Following the announcement, EQT AB shares fell 2.73% to 281.6 SEK.
Key points
- EQT AB is acquiring U.S. real estate manager Stockbridge for an upfront cash base of $375 million plus up to $175 million in potential earnout payments.
- Stockbridge brings approximately $16.5 billion in fee-generating assets under management and $27 billion in gross asset value.
- Stockbridge senior executives will reinvest 50% of their cash proceeds into EQT AB ordinary shares with multi-year lock-up periods.
- The transaction is expected to complete in the first quarter of 2027, subject to investor consents and standard closing conditions.
- Stockbridge is projected to contribute $35 million to $45 million in fee-related EBITDA to EQT AB in 2027.
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How we writeDisclaimerQuestions and answers
How much is EQT AB paying for Stockbridge?
EQT AB is paying a base price of $375 million in cash at closing, with additional performance-based earnouts of up to $175 million payable between 2027 and 2030.
When is the EQT AB acquisition of Stockbridge expected to close?
The deal is expected to close in the first quarter of 2027, subject to customary closing conditions and investor approvals.
What assets does Stockbridge manage?
Stockbridge manages approximately $16.5 billion in fee-generating assets under management and $27 billion in gross asset value across U.S. real estate sectors including industrial and alternative living.