Eurazeo saw 86pc rise in private debt fundraising last year
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.
