EQT Partners has agreed to buy a majority stake in Saxo Payments Banking Circle, a provider of infrastructure for online cross-border payments, from Saxo Bank A/S and other minority owners.

EQT VIII will have majority ownership. The fund will invest alongside EQT Ventures fund, the company’s founders and other co-investors. The deal is expected to close in Q4.

Denmark-headquartered Banking Circle was founded five years ago. Today, it processes around €60m run-rate annual payment volumes for several high-profile clients using direct clearing access through partnerships with blue-chip banks.

The company is growing at around 150 per cent per year, according to a source familiar with the deal. It also has offices in Luxembourg and the UK.

EQT’s investment will be used to support Banking Circle’s growth strategy, which will see the company expand in current and new geographies and build on its product portfolio.

Head of EQT Ventures Hjalmar Winbladh said: “Cross-border payments is a large and rapidly growing market dominated by traditional players. Banking Circle has built a disruptive solution with a strong value proposition. The customer feedback is excellent and the company’s traction is evident looking at the triple digit growth of the business.”

The EQT partner responsible for the deal, Mads Ditlevsen, added that investment from both EQT VIII and EQT Ventures will allow Banking Circle to benefit from the private equity firm’s full platform.

In February EQT closed its eighth flagship fund at its €10.75bn hard cap after five months on the road. The fund is 59 per cent larger than its predecessor, EQT VII, which closed at its €6.75bn hard cap in 2015.