EQT Real Estate, the commercial real estate subsidiary of Swedish private equity giant EQT AB, announced Thursday that it has acquired Stockbridge, a U.S. real estate investment firm with $16.5 billion in assets, for $375 million.  

The deal, which includes an option to pay out $175 million in performance-based bonuses over the next four years, delivers industrial assets and alternatives such as industrial outdoor storage and manufactured housing into EQT’s portfolio, but largely keeps in place the Stockbridge leadership and investment teams. The deal also ensures Stockbridge’s real estate funds strategies — primarily its open-ended core products — will operate independently within EQT Real Estate’s broader investment network. 

Under the terms of the agreement, EQT Real Estate takes 100 percent control of Stockbridge and any general partner entities within the firm’s numerous real estate investment funds, and will invest 35 percent of any carried interest into future funds established by Stockbridge. 

Per Franzén, CEO and managing partner of EQT AB, called the deal “a significant next step in the development” of the firm’s real estate investment business and said the newly combined entity will broaden approaches into new sectors thanks to Stockbridge’s diversified portfolio in the U.S. alternatives space. 

“Stockbridge has built an impressive track record over more than two decades and is an excellent fit with EQT Real Estate,” said Franzén. “Both sides will learn and develop from one another while contributing to the wider EQT platform.”

Stockbridge was founded in 2002, and today employs 185 professionals across six U.S. offices. EQT Real Estate was established only in 2021, following EQT AB’s $1.9 billion acquisition of Exeter Property Group, but has doubled in size within the last five years. 

Terry Fancher, CEO of Stockbridge, said in a statement that the merger allows his firm “to continue delivering differentiated strategies to the market through the same teams and investment philosophy that have built our track record,” but brings with it the benefits of aligning with EQT AB’s global investment network. 

“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,” added Fancher. 

The deal is expected to close in the first quarter of 2027. 

Brian Pascus can be reached at bpascus@commercialobserver.com.