Eurazeo’s private debt AUM grows by 11pc to €7.4bn
Eurazeo saw its private debt assets under management (AUM) rise by 11 per cent year-on-year to €7.4bn (£6.4bn) in its latest annual results, meaning that the asset class now makes up 21 per cent of the European investment manager’s portfolio.
The Paris-headquartered firm reported that fee-paying private debt AUM rose by 10 per cent year-on-year to €5.76bn in the 12 months to 31 March 2024.
Eurazeo’s overall AUM rose by eight per cent over the period to €34.8bn, while fee-paying AUM amounted to €25.6bn, also up eight per cent over 12 months.
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Private equity makes up the lion’s share of Eurazeo’s business, equating to 73 per cent of its AUM, followed by private debt and then real assets, which account for six per cent of the book.
Despite the growth in assets, fundraising was significantly down in the first quarter of this year compared to the same period last year.
Eurazeo’s private debt strategies raised €80m in the first quarter of 2024, compared to €512m in the first quarter of 2023.
“Fundraising from institutional clients (LP) was limited in the first quarter of 2024 due to the closing schedule of the main funds, Eurazeo said. “The group confirms its positive fundraising outlook for 2024, given its rich and diversified fundraising pipeline. In a contrasted fundraising environment that is gradually recovering, the group’s commercial activity is satisfactory, particularly in the private debt (launch of EPD VII), buyout, mandates and sustainable infrastructure segments.”
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Commenting on the results, co-chief executives Christophe Bavière and William Kadouch-Chassaing said: “The start of 2024 was marked by a gradual recovery in our sector.
“Underlying long-term trends remain supportive: increased allocations from institutional and private investors to private markets, substantial financing needs for the real economy and, digital transformation and energy transition.
“We are focused on delivering on our strategic and operational roadmaps and we confirm our outlook for 2024 with: a rich and diversified fundraising pipeline, expected pick-up of realizations during the year and consolidation of our leadership on ESG and impact.”
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