EQT Private Equity Assets Soar to $380M on Strong Investment Gains

TL;DR

**EQT Private Equity is crushing it with massive asset growth and unrealized gains, making it a strong buy for long-term private equity exposure.**

AI Summary

EQT Private Equity Co LLC reported a net increase in net assets from operations of $27,814,738 for the nine months ended September 30, 2025, a significant improvement from zero in the prior year period. The company generated $1,062,668 in interest income for the nine months ended September 30, 2025, compared to zero in the same period of 2024. Total assets surged to $380,922,166 as of September 30, 2025, from $7,202,286 at December 31, 2024, primarily driven by investments at fair value reaching $356,305,921. Net investment income was a loss of $970,824 for the nine months ended September 30, 2025, due to operating expenses totaling $12,217,225, which included a $3,608,063 performance allocation and $4,697,298 in legal and professional fees. The company's net change in unrealized appreciation on investments was $28,989,007 for the nine months ended September 30, 2025. Cash and cash equivalents increased substantially to $15,132,304 from $1,000 at December 31, 2024, largely due to $256,953,965 in proceeds from the issuance of shares. The company acquired portfolio companies totaling $248,477,506 during the nine months ended September 30, 2025.

Why It Matters

EQT Private Equity's substantial asset growth to $380 million and significant unrealized appreciation of nearly $29 million signal strong initial performance in its private equity strategy, which could attract more institutional investors to its continuous private offering. This growth, particularly in technology and services sectors, positions EQT as a formidable player in the competitive private equity landscape, potentially impacting valuations for other private equity firms and their portfolio companies. For employees, this indicates a healthy and expanding firm, while customers of EQT's portfolio companies benefit from continued investment and value creation. Investors should note the high concentration in Level III valuations, which inherently carry more risk and require careful scrutiny.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant reliance on Level III valuations for 97.95% of its portfolio companies, which are inherently less liquid and more subjective than publicly traded assets. Additionally, the company reported a net investment loss of $970,824 for the nine months ended September 30, 2025, indicating that operating expenses currently outweigh investment income, despite overall asset growth.

Analyst Insight

Investors should consider EQT Private Equity Co LLC for exposure to private equity, but with caution regarding the illiquidity and valuation subjectivity of its Level III assets. Monitor future filings for sustained positive net investment income and continued growth in fair value, as well as any changes in the expense structure, particularly the performance allocation.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$380,922,166

total Debt

$0

net Income

$27,814,738

eps

N/A

gross Margin

N/A

cash Position

$15,132,304

revenue Growth

N/A

Key Numbers

• $380.9M — Total Assets (Increased from $7.2M at Dec 31, 2024, reflecting significant growth.)
• $27.8M — Net Increase in Net Assets from Operations (For the nine months ended Sep 30, 2025, compared to $0 in the prior year.)
• $356.3M — Investments at Fair Value (Represents the primary driver of asset growth, up from $0 at Dec 31, 2024.)
• $28.9M — Net Change in Unrealized Appreciation on Investments (Positive unrealized gains for the nine months ended Sep 30, 2025.)
• $248.4M — Acquisition of Portfolio Companies (Cash used for acquisitions during the nine months ended Sep 30, 2025.)
• ($0.97M) — Net Investment Loss (For the nine months ended Sep 30, 2025, due to operating expenses exceeding income.)
• $256.9M — Proceeds from Issuance of Shares (Key financing activity contributing to cash and asset growth.)
• 97.95% — Portfolio Companies as % of Net Assets (High concentration in Level III valued assets.)
• $3.6M — Accrued Performance Allocation (Significant operating expense for the nine months ended Sep 30, 2025.)
• $4.6M — Legal and Professional Fees (Substantial operating expense for the nine months ended Sep 30, 2025.)

Key Players & Entities

• EQT Private Equity Co LLC (company) — registrant
• EQT AB Group (company) — manager's parent company
• EQT Partners Inc. (company) — the Company's manager
• $380,922,166 (dollar_amount) — total assets as of September 30, 2025
• $27,814,738 (dollar_amount) — net increase in net assets from operations for nine months ended September 30, 2025
• $356,305,921 (dollar_amount) — investments at fair value as of September 30, 2025
• $28,989,007 (dollar_amount) — net change in unrealized appreciation on investments for nine months ended September 30, 2025
• $248,477,506 (dollar_amount) — acquisition of portfolio companies for nine months ended September 30, 2025
• $970,824 (dollar_amount) — net investment loss for nine months ended September 30, 2025
• SEC (regulator) — U.S. Securities and Exchange Commission

FAQ

Risk Factors

• Dependence on Manager and EQT AB Group [high — operational]: The Company relies heavily on EQT Partners Inc. (the "Manager") and EQT AB Group for identifying, acquiring, and managing portfolio companies. This dependence creates operational risk if the Manager or EQT AB Group's services are disrupted or if their strategic direction deviates from the Company's objectives. The Company commenced principal operations on July 1, 2025, highlighting its nascent stage and reliance on established infrastructure.
• Valuation of Investments (Level III Assets) [high — financial]: A significant portion of the Company's assets, $356,305,921 as of September 30, 2025, are investments valued at fair value, with a high concentration in Level III valued assets (97.95% of net assets). Level III assets involve unobservable inputs, making their valuation inherently subjective and susceptible to significant fluctuations. This poses a financial risk due to the potential for overvaluation or undervaluation.
• Reliance on Exemptions from Registration [medium — legal]: The Company conducts a continuous private offering of its shares in reliance on exemptions from registration requirements under the Securities Act of 1933. This strategy, while efficient, exposes the Company to regulatory scrutiny and potential legal challenges if compliance with accredited investor and non-U.S. person criteria is not meticulously maintained. Legal and professional fees were $4,697,298 for the nine months ended September 30, 2025.
• Significant Operating Expenses [medium — financial]: For the nine months ended September 30, 2025, operating expenses totaled $12,217,225, resulting in a net investment loss of $970,824. Key components include a $3,608,063 performance allocation and $4,697,298 in legal and professional fees. These high expenses, especially in the early operational phase, could impact profitability and the ability to achieve capital appreciation objectives.

Industry Context

EQT Private Equity operates within the private equity sector, a market characterized by active deal-making and a focus on long-term capital appreciation. The industry is competitive, with firms like EQT AB Group leveraging extensive networks and expertise to identify and acquire portfolio companies. Trends include a growing demand for specialized investment strategies and a focus on operational improvements within acquired businesses to drive value.

Regulatory Implications

EQT Private Equity's reliance on exemptions from registration for its share offerings subjects it to ongoing compliance requirements. Failure to adhere to the criteria for accredited investors and non-U.S. persons could lead to regulatory action. The company's structure, designed to avoid classification as an investment company, also requires careful adherence to specific operational and reporting guidelines.

What Investors Should Do

1. Monitor investment valuation policies closely.
2. Assess the sustainability of high operating expenses.
3. Understand the reliance on EQT AB Group and the Manager.

Key Dates

• 2024-06-20: Formation of EQT Private Equity Company LLC — Marks the legal establishment of the entity.
• 2025-07-01: Commencement of Principal Operations — Indicates the start of active investment and business operations.
• 2025-09-30: End of Nine-Month Reporting Period — Date for which the presented financial statements are as of.

Glossary

Level III Assets

Investments whose valuation is based on unobservable inputs, meaning they are not quoted in active markets and require significant judgment and estimation by the company. (Represents the vast majority of EQT Private Equity's investments ($356.3M out of $380.9M total assets), indicating a high degree of valuation subjectivity and potential risk.)

Investment Company Act of 1940

U.S. federal legislation that regulates investment companies, including mutual funds, closed-end funds, and unit investment trusts. EQT Private Equity operates in a manner to be excluded from this definition. (Highlights EQT Private Equity's structure as a holding company seeking to avoid the stricter regulatory requirements imposed on registered investment companies.)

Accredited Investor

An individual or entity that meets certain net worth or income thresholds, allowing them to invest in securities that are not registered with the SEC. (Relevant to EQT Private Equity's private offering strategy, as shares are sold to accredited investors in reliance on exemptions from registration.)

Performance Allocation

A fee charged by a fund manager, typically a percentage of profits, representing their share of the investment gains generated. (A significant operating expense for EQT Private Equity ($3,608,063 for the nine months ended Sep 30, 2025), impacting net investment income.)

Year-Over-Year Comparison

This is the first reported period for EQT Private Equity Co LLC, as principal operations commenced on July 1, 2025. Therefore, direct year-over-year comparisons of revenue, margins, or debt levels are not applicable. The company shows significant asset growth from $7.2M to $380.9M, driven by share issuances and investment acquisitions, and a positive net increase in net assets from operations of $27.8M, contrasting with zero in the prior year period which reflects its pre-operational status.

Filing Documents

• ck0002032020-20250930.htm (10-Q) — 2412KB
• ck0002032020-ex31_1.htm (EX-31.1) — 17KB
• ck0002032020-ex31_2.htm (EX-31.2) — 17KB
• ck0002032020-ex32_1.htm (EX-32.1) — 11KB
• ck0002032020-ex32_2.htm (EX-32.2) — 11KB
• 0001193125-25-283327.txt ( ) — 8916KB
• ck0002032020-20250930.xsd (EX-101.SCH) — 835KB
• ck0002032020-20250930_htm.xml (XML) — 1880KB

Financial Information

Part I.Financial Information 1

Financial Statements

Item 1. Financial Statements 1 Consolidated Statements of Assets and Liabilities as of September 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 5 Condensed Consolidated Schedules of Investments as of September 30, 2025 (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 29

Other Information

Part II.Other Information 30

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 31

Signatures

Signatures 32 i Certain Terms Used in this Quarterly Report on Form 10-Q references to "we," "us," "our," "EQPE" and the "Company" refer to EQT Private Equity Company LLC; references to "Board" refer to the Company's Board of Directors; references to "EQT" refer collectively to one or more of EQT AB Group and/or investment vehicles or other arrangements and any of their respective successors, in each case, managed and/or operated and/or advised by the EQT AB Group (the "EQT Vehicles"); references to "EQT AB Group" refer to EQT AB and/or any one or more of its direct or indirect subsidiaries; references to "EQT AB Group Shares" refer to the Company's Class E Shares ("Class E Shares"), Class Q Shares ("Class Q Shares"), Class T Shares ("Class T Shares") and Class H Shares ("Class H Shares"). EQT AB Group Shares will be held only by EQT AB Group, certain of its affiliates, employees, officers and directors and the Company's employees, officers and directors and are not being offered to other investors; references to "EQT Executives" refer to a current or former director, officer, partner, member, manager or employee of any member of EQT AB Group; references to "EQT Partners" refer to EQT Partners AB and/or certain of its affiliates, subsidiaries, parent or branches appointed as advisors and/or sub-advisors to the general partners, managers and/or operators of certain EQT Vehicles, as the context requires and references to "Advisory Professionals" are to advisory professionals of EQT Partners; references to "Investor Shares" refer to the classes of Shares available to investors, which currently consists of: Class I Shares, Class D Shares, Class S Shares, Class J1 Shares, Class J2 Shares, Class A-I Shares, Class A-D Shares, Class A-S Shares, Class A-J1 Shares and Class A-J2 Shares. references to "Joint Ventures" refer to joint ventures formed between us and other sources of capital that we intend to use to acquire, own and control portfolio compan

Financial Information

Part I. Financial Information

Fin ancial Statements

Item 1. Fin ancial Statements EQT Private Equity Company LLC Consol idated Statements of Assets and Liabilities (Unaudited) September 30, 2025 December 31, 2024 Assets Investments, at fair value (cost: $ 327,148,429 and $ 0 , respectively) $ 356,305,921 $ — Cash and cash equivalents 15,132,304 1,000 Cash in foreign currencies, at fair value (cost: $ 21,792 and $ 0 , respectively) 25,788 — Due from Manager 6,993,525 5,545,939 Deferred offering costs 1,756,918 1,655,347 Interest receivable 707,710 — Total assets $ 380,922,166 $ 7,202,286 Liabilities Servicing fees payable $ 6,827,266 $ — Organization costs payable 524,763 3,348,237 Management fee payable, net 195,042 — Accrued performance allocation 3,608,063 — Legal and professional fees payable 2,976,838 2,113,578 General and administrative expenses payable 453,154 7,457 Offering cost payable 2,342,557 1,655,347 Directors' fees and expenses payable 82,500 76,667 Other payables 99,427 — Total liabilities $ 17,109,610 $ 7,201,286 Commitments and contingencies (Note 8) Net assets $ 363,812,556 $ 1,000 Net assets are comprised of: Class A-D Shares, 400,000 and 0 shares authorized, issued and outstanding, respectively 11,019,786 — Class A-I Shares, 1,909,200 and 0 shares authorized, issued and outstanding, respectively 53,208,615 — Class A-J1 Shares, 3,865,819 and 0 shares authorized, issued and outstanding, respectively 105,204,704 — Class A-J2 Shares, 557,003 and 0 shares authorized, issued and outstanding, respectively 15,157,959 — Class A-S Shares, 3,542,756 and 0 shares authorized, issued and outstanding, respectively 91,160,210 — Class E Shares, 3,104,740 and 0 shares authorized, issued and outstanding, respectively 87,889,442 — Class H Shares, 40 and 0 shares authorized, issued and outstanding, respectively 1,136 — Class I Shares

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1. Organization EQT Private Equity Company LLC ("EQPE" and the "Company") was formed on June 20, 2024 as a limited liability company under the laws of the state of Delaware and the Company operates its business in a manner permitting it to be excluded from the definition of "investment company" under the Investment Company Act of 1940, as amended. The Company is a holding company that seeks to acquire, own and control portfolio companies with the objective of generating attractive risk-adjusted returns and achieving medium-to-long-term capital appreciation through joint ventures ("Joint Ventures"). The Company is sponsored by EQT AB (together with any one or more of its direct or indirect subsidiaries, "EQT AB Group") and expects to benefit from EQT AB Group's institutional private equity platform pursuant to its management agreement with EQT Partners Inc. (the "Manager") to support the Company in identifying, acquiring, owning and controlling its portfolio companies in accordance with the Company's objectives. The Company commenced its principal operations on July 1, 2025. EQPE conducts a continuous private offering of its shares in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), (i) to accredited investors (as defined in Regulation D under the Securities Act) and (ii) in the case of shares sold outside of the United States, to persons that are not "U.S. persons" (as defined in Regulation S under the Securities Act). As of September 30, 2025, the Company offers the following classes of investor shares: Class I Shares, Class D Shares, Class S Shares, Class J1 Shares, Class J2 Shares, Class A-I Shares, Class A-D Shares, Class A-S Shares, Class A-J1 Shares and Class A-J2 Shares (collectively, the "Investor Shares"). Holders of Investor Shares have equal rights and privileges with each other, except as it relates to the maximum sales loads, d

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