EQT has agreed to acquire Stockbridge, a San Francisco-based real estate investment manager, for US$375m in cash plus earnouts of up to US$175m.
Why EQT is buying Stockbridge
EQT said the deal would accelerate EQT Real Estate's evolution into a more thematically diversified manager. Stockbridge, founded in 2003, has about 185 staff across six US offices and around 180 institutional clients, with strategies including industrial outdoor storage and manufactured housing.
Deal terms and financing
EQT will pay US$375m in cash at closing from its balance sheet, with up to US$175m more payable over 2027-2030 if fundraising targets are met. Stockbridge's senior management will reinvest half of their cash proceeds in EQT shares subject to lock-ups to 2031. EQT expects Stockbridge to contribute US$35m-45m of fee-related EBITDA in 2027.
Regulatory approvals and timing
Completion is subject to customary conditions including investor consents and is expected in the first quarter of 2027.
Market context
Stockbridge chief executive Terry Fancher will become vice chair of EQT Real Estate, reporting to global head Henry Steinberg, and the firm will adopt the EQT Real Estate brand at closing. EQT announced the deal alongside its third-quarter update.
