Eurazeo (RF) Q3 2024 earnings summary

Executive summary

• Fundraising reached €3 billion in the first nine months of 2024, up 76% year-over-year, with strong momentum in private debt (+110%) and private equity (+59%).

• Fee-paying AUM increased 12% to €26.0 billion, and total AUM rose 7% to €35.5 billion, with third-party AUM at €25.2 billion.

• Realizations surged to €2.4 billion, three times higher than the same period last year, and deployments grew 5% to €3.2 billion.

• Portfolio companies delivered robust revenue growth: Buyout +7%, Growth +14%, Real Assets +21%.

• Continued progress in ESG and impact, with 33 impact investments and successful fundraising for sustainable infrastructure and biotech funds.

Financial highlights

• Third-party management fees increased 15% year-over-year, with total management fees up 9% and performance fees at €12 million.

• Institutional fundraising outside France represented 70% of inflows, and wealth management fundraising grew 11% to €629 million.

• Net investment portfolio valued at €8.3 billion as of September 30, 2024.

• Buyout exits generated an average cash-on-cash multiple of 2.4x, with select venture/growth exits achieving 4.0x.

• PME IV (Private Equity) delivered a gross IRR of 33% and a gross MOIC of 1.7x.

Outlook and guidance

• Full-year 2024 fundraising is expected to reach around €4 billion, continuing the growth trend from previous years.

• Asset rotation expected to exceed 11% of the previous year's portfolio by year-end, though below the typical 20-25% pace.

• Management reiterates commitment to 15% average annual growth in third-party management fees through 2027.

• Operating leverage anticipated in 2024, balancing cost discipline with growth investments.

• Further increase in realization volumes anticipated, supported by a strong exit pipeline.