By Anousha Sakoui and Iain Withers
LONDON (Reuters) -Swedish private equity giant EQT is aiming to more than double its European investments to 250 billion euros ($292 billion) over the next five years, but is urging the region to adopt more pro-growth policies to unlock private capital and better compete with a rampant U.S. market.
EQT’s CEO Per Franzen called for barriers preventing technology start-ups from scaling up to be removed – such as easing cross-border stock ownership rules – and threw his weight behind calls for a pan-European stock market to make listing in the region more attractive, in a letter to be published Tuesday on the investment firm’s website.
Building a thriving tech industry in Europe has become an “urgent geopolitical and strategic requirement” for the region, Franzen added.
Franzen’s comments come as European leaders from German Chancellor Friedrich Merz to French President Emmanuel Macron have stepped up public calls for the bloc to cut red tape and become more economically competitive.
EQT’s plan to invest 250 billion euros in Europe compared to 120 billion euros deployed over the past five years, the investor said, adding it wanted to commit more but this hinged on the region becoming more competitive.
In comparison, Franzen told Bloomberg earlier this month that EQT plans to invest more than $250 billion in the US over the next five years.
Europe had failed to create enough high-value companies, Franzen said, citing MIT research that showed the U.S. had created 241 companies worth $10 billion-plus in the past 50 years, compared to just 14 in Europe.
“This isn’t just an unfortunate statistic – it has serious implications for the continent’s future prosperity and ability to chart its own course,” Franzen said.
Franzen’s comments add to others who have pushed to allow for more scale among European companies. In the telecom sector, some CEOs have been seeking support for further consolidation.
National governments should learn from each other on how to improve, including from Sweden which had succeeded in stimulating private investment, Franzen said.
“To make scaling in Europe the rule, not the exception, we need coordination, courage, and commitment from all sides. And we need it now,” he added.
Per Franzén became CEO of EQT in May, after leading a 22 billion euro fundraising in 2024 – the company’s largest ever.
Franzen called for simplifying rules for companies operating across borders and to make it easier to set up stock option plans for early stage companies. He also said a critical issue is access to capital and boosting European demand for early stage tech.
($1 = 0.8575 euros)
(Reporting by Anousha Sakoui and Iain Withers in London. Editing by Nick Zieminski)
