Swedish private equity giant EQT AB has entered into a definitive agreement to acquire San Francisco-based real estate investment manager Stockbridge in a deal valued at $375 million on a cash- and debt-free basis. Funded directly from EQT’s balance sheet, the transaction includes additional performance-based earnouts of up to $175 million payable between 2027 and 2030, bringing total potential consideration to $550 million. Slated to close in the first quarter of 2027 subject to customary investor consents and regulatory approvals, the landmark acquisition significantly accelerates EQT Real Estate's growth across North America.
Founded in 2003, Stockbridge manages approximately $16.5 billion in fee-generating assets under management (AUM) and $27 billion in gross asset value (GAV) across industrial logistics, urban residential assets, and niche real estate subsectors. With 185 investment professionals across six U.S. offices, the firm caters to roughly 180 institutional clients. By absorbing Stockbridge’s deep market expertise, EQT expands its core U.S. logistics capabilities and creates a powerful springboard into high-conviction alternative living sectors, including manufactured housing, student accommodation, and senior housing.
From an ownership perspective, EQT acquires 100% of Stockbridge’s management operating company and general partner (GP) entities, along with the right to invest in 35% of carried interest across future Stockbridge funds. Stockbridge is projected to deliver between $35 million and $45 million in fee-related EBITDA in 2027, representing a robust EBITDA margin of 30% to 35%. To ensure strong alignment of interest, Stockbridge’s senior executive team has committed to reinvesting 50% of their net cash proceeds into EQT AB ordinary shares, bound by standard lock-up provisions.
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