EQT Hit With Fraud Suit by Ousted Real Estate Fund Manager (1)

EQT AB duped a fund manager into joining its “chaotic” US multifamily property segment—since shut down—by promising him millions it never planned to pay, he’s claiming in court.

David Carlson sued the Swedish investment firm for fraud Thursday, saying it pulled a bait-and-switch to avoid handing over post-deal payments tied to the acquisition of his real estate investment business, Redwood Capital Group LLC. The European private equity giant, among the world’s largest, has links to Sweden’s influential Wallenberg family.

The 2022 deal combined Redwood with EQT Exeter, the property unit EQT bought for $1.9 billion the previous year in ...