Eurazeo (RF) Q2 2024 earnings summary

Executive summary

• Fundraising rose 63% year-over-year to €2.1bn, with strong inflows across Private Debt, Private Equity, and Real Assets, and Fee Paying AUM for third parties up 14% to €25.8bn.

• Internationalization advanced, with 70% of institutional fundraising from outside France and wealth inflows up 30% in H1 2024.

• Realizations surged to €1.6bn, a threefold increase year-over-year, while deployments remained stable at €1.6bn.

• Shareholder returns enhanced by a 10% dividend increase to €2.42/share, €179m in dividends, and €109m in share buybacks.

• Maintained ESG leadership, ranking #81 globally for sustainability and #2 in private equity for DEI, with new impact funds launched.

Financial highlights

• Total AUM grew 9% year-over-year to €35.4bn; third-party AUM up 13% to €25.0bn.

• Management fees reached €204m, up 8% year-over-year; third-party management fees up 13%.

• Fee Related Earnings (FRE) for H1 2024 was €71m, up 21% year-over-year, with a FRE margin of 34.8%.

• Asset management activity contributed €65m (+16%), while investment activity contribution was -€156m.

• Net value of the investment portfolio was nearly €8bn (€106.9/share), with a portfolio fair value loss of -0.6%.

Outlook and guidance

• Asset rotation and realizations expected to exceed 2023 levels, with a diversified pipeline of exits for H2 2024.

• Medium-term objectives confirmed, with ambitions to lead European private asset management in mid-market, growth, and impact segments.

• Fundraising momentum and international expansion expected to continue, with new products and ESG initiatives planned.

• Value creation target remains a consistent 12% return over a three to five-year period.