French asset manager Eurazeo reported strong momentum in its private debt business last year, with fundraising volumes rising by 86 per cent to €2.5bn (£2.1bn) thanks to its direct lending programme.
Private debt assets under management (AuM), which make up 26 per cent of Eurazeo’s business, increased by 23 per cent year-on-year to €9.23bn, while fee-paying AuM rose by 10 per cent to €6.57bn.
Eurazeo, which has more than two thirds of its assets in private equity and a smaller real assets book, reported a four per cent increase in total AuM to €36.1bn and an eight per cent rise in total fee-paying AuM to €26.95bn.
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Fee-related earnings rose by 11 per cent to €150m, during a year in which Eurazeo deployed €4.6bn of assets – up from €3.9bn in 2023.
Eurazeo said that it had performed strongly in the first year of its strategic plan.
“Eurazeo closes the first year of its 2024-2027 strategic plan delivering a strong performance and cementing its position as a major private-market asset manager in Europe,” said co-chief executives Christophe Bavière and William Kadouch-Chassaing.
“This year, we made headway in all the announced criteria: increased fundraising, higher revenue and margin, sharp upturn in asset rotation, quality of portfolio company performance.
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“The share buyback program will be doubled in 2025 and a 10 per cent increase in the ordinary dividend will be proposed at the next shareholders’ meeting. In a market that remains uncertain, we expect to see a further increase in exits and improved value creation prospects.”
Eurazeo raised €2.3bn for its sixth direct lending fund at the final close in November 2023, beating its €2bn target.
Nicolas Nedelec, partner, private debt, said at a media roundtable last month that Eurazeo is currently fundraising for its seventh direct lending fund with a target of €3bn, which he expects to be oversubscribed by the summer.
