EQT has agreed to acquire Stockbridge, a San Francisco-headquartered US real estate investment manager with approximately $16.5 billion in fee-generating assets under management and $27 billion in gross asset value. EQT will pay a base consideration of $375 million in cash at closing, on a cash- and debt-free basis, funded from its balance sheet. Up to $175 million in further earnout payments may become payable over 2027–2030, depending on performance targets tied to raising fee-paying commitments in new products.
Stockbridge's senior management have committed to reinvest half of their cash consideration in EQT shares. Those shares will be bought in the market after closing and will be subject to lock-up arrangements expiring in stages in 2029, 2030 and 2031. EQT will acquire 100 percent of the Stockbridge management company and the general partner entities controlling interests in its funds, and will be entitled to invest in 35 percent of the carried interest in all future Stockbridge funds.
Founded in 2003, Stockbridge has approximately 185 professionals across six US offices and about 180 institutional clients. Its focus areas include industrial outdoor storage, open-ended core products and alternative living, including manufactured housing. Its diversified and alternative strategies will operate as a dedicated business line within EQT Real Estate, while its open-ended core product will become a flagship diversified core strategy. The company says that product ranks in the top 5 percent of its peer group over one-, three- and five-year periods.
Stockbridge is expected to contribute approximately $35 million–$45 million of fee-related EBITDA in 2027, at a margin of 30 to 35 percent. Terry Fancher will become vice chair of EQT Real Estate, and Kristin Renaudin will become its global CFO. The deal is expected to close in the first quarter of 2027, subject to customary closing conditions, including investor consents.
Source: PE Hub · Summarized by HeadlinesBriefing