Q3-23: €3bn fundraising guidance in a weaker environment

Clearly, the economic climate remains unfavourable for private equity players. As such, Eurazeo has experienced a decline in both disposals and investments but the results have proved resilient, with PF AUM up by 11% yoy to €33.5bn in the Q3. Even more impressive, in a more muted market, Eurazeo expects to raise around €3bn, above the €2.9bn (excluding Rhône) raised in 2022. That said, we believe a doubling in AUM over the mid-term remains ambitious, unless Eurazeo jumps on the consolidation ban

The end of the private equity golden age?

After a record 2021 for private equity players and a resilient 2022 for Eurazeo amidst an unfavorable macroeconomic environment, 2023 appears more challenging. The end of the low-interest rate era and stimulus packages is being felt by Eurazeo, which has recorded a drop in fundraising and lower investment activity, although the increase in AUM is to be welcomed. Furthermore, excluding non-recurring items, Eurazeo’s net income came to -€42m in H1-23. Simply put, these results point to a deteriora

A subdued quarter

Eurazeo published mixed results for H1 2023: notwithstanding an increase in AuM of €35.2bn in H1-23 and an exceptional net result of €1.8bn due to an accounting effect, we see the negative change in the portfolio value of €27m, the decline in investment activity and the difficulty in raising funds (vs. H1-22) in a negative light.

Q1 23: AuM gains ground against a challenging environment

Amidst a tough environment, Eurazeo is hitting the ground running with growth in its asset management activity (+10% yoy AuM), increasing management fees (+28% yoy), satisfactory fundraising (+42% yoy) and the robust top-line growth of portfolio companies. Even if the investment activity remains unsurprisingly impacted by the environment through fewer exits, Eurazeo’s solid Q1 performance has prompted it to reiterate its FY 23 guidance.

Eurazeo in solid footing amidst a cooled private markets environment

Notwithstanding our concerns of private market players in an unfavourable macro-economic environment, Eurazeo reasserted its robustness by delivering 2022 results ahead of expectations. The market downturn did not jeopardise Eurazeo’s objectives, which saw a 10% increase in AuM, an 8% increase in NAV and a consolidated net income 30% higher than AV’s estimate. While the 2022 results are a clear beat, we remain cautious about the group’s activity in a challenging climate, with a two-CEO structure

Decaux family's tightened stranglehold on the French private equity giant

After an impromptu supervisory board meeting, Virginie Morgon, Eurazeo’s CEO since 2018, was pulled out by the majority shareholder, JC Decaux. Even though the Decaux family had entered the capital of the French private equity giant with a fussy attitude, the narrative seems to have changed since the death of Eurazeo’s emblematic figure, Michel-David Weill, which has shuffled the power cards. Under the guise of governance problems, the Decaux family is strengthening its grip over the investment

Q3 22: Resilient performance in the midst of a challenging environment

As we had expected, Eurazeo published a resilient trading statement marked by the expansion of its asset management activity with a 20% increase in its AuM yoy, 22% in its management fees, 25% in its third party fees and higher fundraising than in 2020. The holding company has accordingly confirmed its outlook for the years to come.

A subdued quarter for the rest of FY 2022

Eurazeo published mixed results for H1 2022, with a sharp drop in net income (-96M€ vs. +464.5M€ a year earlier) and NAV down by 2%. Nevertheless, the HoldCo remains confident for the rest of the year and has confirmed its outlook given the growing AuM (+27% yoy), the increase in management fees (+30% yoy), and exit multiples (3.6x) that do not reflect the shakier markets.

Q1-22: Steady progress on the asset management ambitions despite volatile market conditions

Eurazeo’s Q1 trading statement showed solid top-line growth across the portfolio companies as well as the asset management activity. The latter was driven by the continued rise in AUM, buoyed by higher fundraising despite shakier markets. These same drivers, as well as the solid Q1 performance from the portfolio companies give confidence on a more upbeat FY outlook even if the current macro and geopolitical headwinds are a key risk.

FY21: AUM growth, record investment activity put Eurazeo in the big league

Eurazeo’s FY21 saw record results across the board and bigger ambitions for its asset management business, confirming that the company’s strategy delivers and supports shareholder returns (the proposed special dividend comes as a welcome surprise). Last year’s strong execution has Eurazeo in solid footing to face the current volatile market environment, even if a cool-down of private markets cannot be excluded given the tense geopolitical situation and its implications on the global economy.

Q3 21: solid execution, €4bn FY fundraising guidance supports outlook

Eurazeo posted a solid Q3 release, with fundraising over the quarter putting the ytd tally at a record €3.0bn, already ahead of the FY20 performance all of 2020. This supports the strong momentum in AUM which is reflected in rising fee revenues from its third-party asset management activity. High levels of investment and realisations should extend into 2022, pointing to an upbeat FY22 scenario.

H1 21: record fundraising and strong AUM & NAV progression

Eurazeo published strong H1 figures with positive contributions coming from all activities, leading to the second highest H1 net result over the last 12 years. Moreover, rising valuations for its portfolio assets, record fundraising and a busy deal pipeline ahead show that Eurazeo is getting things done. The progress made on the strategic targets presented back in November support a brighter outlook.

Q1 21: fundraising progresses nicely ahead of major divestment programme

Eurazeo released Q1 figures that signal another year of strong fundraising after a record 2020. While management fees only grew modestly due to higher balance sheet divestments, the company is rebalancing towards more third-party capital further developing its money manager pursuit. As for the outlook, Eurazeo points to a busy divestment schedule through 2021-22 concerning its more mature funds led by the favourable market environment.

H1: Travel & Leisure-led hit to NAV

Eurazeo’s H1 release was a mixed bag, given the sizeable impact of the COVID-19-driven crisis on the portfolio companies exposed to the Travel & Leisure sector. While the group’s tech-focused ‘growth’ investments have proved resilient from an operations and valuation perspective. Still, the WorldStrides’ restructuring is a major hit to Eurazeo’s earnings. The negative sentiment related to this matter (in addition to Europcar) risks weighing on the share price in the short term despite an otherwi

FY19: asset management business continues gaining steam

Eurazeo released FY19 results that put into evidence the increasing importance of the company’s role as a manager for third-party money. The increasing dependence on this business will mean that Eurazeo’s capability to keep growing in AUM and maintaining these funds will become ever more crucial, especially in turbulent market conditions, where investors may aim to retreat from risky assets in the search for safe-havens.

LIBERUM: Plus500: Strategic progress pays dividends

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Morning Note – 18 April 2024

NextEnergy Solar Fund - Attractive Refinancing

The refinancing of a £135m revolving credit facility and the extension of a similar £70m facility gives NESF firepower as development opportunities for new solar are especially attractive thanks to lower module prices in Europe. They give the fund key financial flexibility at a critical time as it pursues its capital recycling programme.

Foxtons Group - FY24 underpinned by market share gains

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NextEnergy Solar Fund – High- and growing-income opportunity?

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The Hardman & Co Monthly: April 2024

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Resilient FY24, confident long-term outlook

Vp’s full year update highlights sector-leading results, once again benefiting from the diversity of its end markets and the quality of its specialist businesses. With results expected to be broadly in line with expectations, we trim our FY24 PBT forecast by c.5% to £39.0m, a shade below the FY23 outturn (£40.2m). We consider this an impressively resilient performance set against a mixed market backdrop. Under new leadership, a strategic refresh is underway and management is confident in long