Swedish investment firm EQT and UK-based VC Atomico are vying to manage the EU's €5bn Scaleup Europe Fund after competitors including Eurazeo, Northzone, and Vitruvian Partners were eliminated from contention, according to sources familiar with the selection process. The fund represents one of the European Union's largest initiatives to support scaling technology companies across the continent.

The selection process has narrowed to these two finalists, with industry observers noting the significance of having both a Swedish and British firm in the running. EQT brings extensive experience in private equity and infrastructure investments, while Atomico has established itself as a leading European venture capital firm with a focus on technology startups. The competition highlights the growing importance of European tech investment amid increasing global competition for innovation leadership.

Sources indicate the final decision could come within weeks, with both firms having submitted detailed proposals outlining their investment strategies and operational capabilities. The €5bn fund is expected to be deployed over several years, targeting high-growth companies in sectors ranging from artificial intelligence to clean energy technologies. This competition underscores the EU's commitment to building a robust ecosystem for scaling innovative companies within Europe.