EQT Unit Ordered to Face Fraud Suit by Real Estate Fund Manager

March 26, 2026, 1:58 PM UTC

An EQT AB affiliate lost its bid to end fraud litigation brought by a fund manager who sold his business to the Swedish investment firm during its failed foray into the US multifamily market.

A federal judge in Delaware let the case move forward, saying it’s plausible EQT Exeter pulled a bait-and-switch to avoid handing over millions to David Carlson, a co-founder of Redwood Capital Group LLC. Carlson’s lawsuit, filed last year, said the “chaotic” property unit duped him into raising cash for a real estate investment fund that didn’t count toward the milestones triggering post-deal payments.

The ...

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