Eurazeo has come to an agreement with a group of international investors that will provide $407 million additional investment capacity for its Eurazeo growth strategy.
The investors will commit to a newly created continuation fund that will acquire a 32 per cent stake in Eurazeo Growth assets which were financed through the Eurazeo balance sheet. Eurazeo remains fully committed to the development of these companies; it will hold on to the remaining 68 per cent of these assets and will maintain full control through the management of the continuation fund. This transaction remains subject to the satisfaction of certain conditions precedent and is expected to close within Q1 2021.
Through this transaction Eurazeo will receive cash proceeds of EUR215 million. The transaction generates an IRR of c25 per cent on the investments that are being realised. Assets are valued in line with the Eurazeo NAV as of 30 June 2020.
The commitments received for this transaction will fund the acquisition of the above 32 per cent stake and provide follow on capital for the relevant portfolio companies, and fund new investments by the Eurazeo Growth team. The investor group is comprised of leading institutional investors in Europe and North America, representing collectively over €500 bn in assets under management. It comprises both returning investors and new relationships.
This transaction is a new milestone demonstrating investor appetite for this strategy launched in 2015 from Eurazeo’s balance sheet. Eurazeo Growth consists of a multilocal (Paris, London, Berlin) team of 15 professionals investing in and developing the next generation of European tech leaders. Together with the Venture Capital team, Eurazeo manages over EUR4 billion in AuM in fast growing Tech assets.
Yann du Rusquec, Partner at Eurazeo Growth, says: “With initial returns on this portfolio of above 25 per cent, and significant new relationships for the Eurazeo Growth team, this is a very significant step for us and validates our vision and the investment model we have built over the years. We are proud that top level international investors trust us with this renewed partnership and look forward to shared success in the years to come.”