Global private capital firm EQT has agreed to acquire Stockbridge, a US real estate investment manager overseeing approximately USD 16.5 billion in fee-generating assets under management and USD 27 billion in gross asset value. The base consideration for the transaction is USD 375 million in cash, funded from EQT’s balance sheet, with potential earnouts of up to USD 175 million payable between 2027 and 2030 depending on fundraising performance targets.

Founded in 2003 and based in San Francisco, Stockbridge employs around 185 staff across six US offices, servicing roughly 180 institutional clients. Its investment portfolio spans traditional real estate sectors alongside specialised sub-sectors, including Industrial Outdoor Storage, Manufactured Housing and an open-ended core fund ranked in the top 5% of its peer group across 1-, 3- and 5-year metrics.

Under the transaction agreement, EQT will acquire 100% of the Stockbridge management company and general partner entities, along with 35% of carried interest in future funds. Senior management at Stockbridge have pledged to reinvest half of their cash proceeds into EQT AB ordinary shares following the completion of the deal.

Stockbridge’s industrial operations will merge with EQT Real Estate’s existing industrial setup, while its diversified and alternative strategies will form a dedicated unit within the group. Stockbridge CEO Terry Fancher will become Vice Chair of EQT Real Estate, reporting to Global Head Henry Steinberg. Stockbridge CFO Kristin Renaudin will assume the role of Global CFO at EQT Real Estate, and Executive Managing Director Tuba Malinowski will become Head of U.S. Diversified Real Estate. The deal is expected to close in the first quarter of 2027, subject to customary approvals.

Per Franzén, CEO and Managing Partner of EQT, said: “Our Real Estate platform is an important part of EQT’s offering to our clients, and this combination represents a significant next step in the development of the business. Stockbridge has built an impressive track record over more than two decades and is an excellent fit with EQT Real Estate. Both sides will learn and develop from one another while contributing to the wider EQT platform. The combination broadens what we can offer our clients: additional thematic strategies supported by specialist investment teams that will benefit from EQT’s global sourcing, operating, and distribution capabilities.”

Henry Steinberg, Global Head of EQT Real Estate, said: “This transaction will enable us to deliver the attractive risk-adjusted returns our clients have come to expect from EQT Real Estate across a broader range of sectors. It will expand our industrial platform and broaden client access to complementary strategies, accelerating EQT Real Estate’s evolution into a more thematically diversified real estate manager, while staying true to our sector-specialist, local-with-locals approach. In turn, we bring EQT’s international platform, global market intelligence, and our proprietary data and AI capabilities and tools to enhance how Stockbridge sources, underwrites, and manages assets, and we hope to sharpen both firms’ investment frameworks to further cement our position as a leading investor and operator. We are deeply impressed by what the Stockbridge team has built and we are excited about the opportunities this next phase of growth will create for our clients, our people and the broader EQT Real Estate platform.”

Terry Fancher, CEO of Stockbridge, said: “Over more than two decades, Stockbridge has built a leading real estate investment platform grounded in disciplined execution, diversification, and a steadfast commitment to our clients. Joining EQT Real Estate enables us to continue delivering differentiated strategies to the market through the same teams and investment philosophy that have built our track record, while benefiting from EQT’s global reach and operating platform. EQT has built a leading global alternative investment platform, and we believe its investment approach, client focus and people-centric culture are closely aligned with our values and long-term vision. We are excited to bring our expertise to EQT to broaden its investment offerings and exposure across both traditional and alternative real estate sectors, while maintaining the investment rigor and client-first mindset that have defined Stockbridge since our founding. We look forward to building this next chapter of the platform together.”