EQT clinched the €5bn Scaleup Europe Fund mandate, outpacing rivals like Atomico in a high-stakes battle for European deeptech investment. The fund targets startups in quantum computing and AI, with €2.5bn committed by year-end, including €1bn from the European Innovation Council (EIC) and €1.5bn from private LPs like Novo Holdings and APG Asset Management. EQT’s Ted Persson and Victor Englesson will lead the advisory team, while Christian Sinding chairs the investment committee. This win underscores EQT’s growing influence in scaling European tech innovation.

The race to manage the fund had narrowed to EQT and Atomico, with Eurazeo and Vitruvian also in contention. EQT’s track record as a frontrunner played a key role, despite earlier scrutiny over a former EU commissioner advisor joining the firm. A spokesperson clarified EQT’s compliance with governance rules, emphasizing Frølund’s advisory role as non-conflict. The fund’s structure reflects strategic LPs, including Sweden’s Wallenberg family, signaling institutional backing for high-risk, high-reward deeptech bets. This move could reshape Europe’s startup ecosystem, prioritizing cutting-edge tech over traditional sectors.

EQT’s victory highlights shifting dynamics in venture capital, where specialized firms like Atomico face pressure from broader, globally diversified players. The fund’s focus on quantum computing and AI aligns with EU policy goals, potentially accelerating breakthroughs in these fields. With €2.5bn already committed, the fund’s success may hinge on EQT’s ability to attract startups amid fierce competition. For investors, this represents a concentrated play on Europe’s tech future, though risks remain in early-stage ventures. The appointment of experienced EQT partners suggests a deliberate strategy to balance expertise with institutional resources.