Eurazeo (RF) Q2 2024 earnings summary

Executive summary

• Fundraising rose 63% year-over-year to €2.1 billion, 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.

• Operational efficiency improved, with fee-related earnings (FRE) up 21% year-over-year and a FRE margin of 34.8%.

• Shareholder returns enhanced by a 10% dividend increase to €2.42/share, a doubled share buyback program, and €0.3bn returned to shareholders in H1 2024.

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

Financial highlights

• Total AUM grew 9% in H1 2024 to €35.4 billion; third-party AUM up 13% to €25.0bn.

• Management fees reached €204 million, up 8% year-over-year; third-party management fees up 13% to €145m.

• FRE for H1 2024 was €71 million, up 21% year-over-year; asset management contribution €65 million, up 16%.

• Net value of the investment portfolio was nearly €8 billion (€106.9/share), down 4% due to exits and disciplined reinvestment.

• Investment activity P&L contribution was -€156 million in H1; group share net loss improved to -€98 million (excluding one-offs).

Outlook and guidance

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

• Continued focus on internationalization, digital transformation, and ESG/impact investing, with new products and expansion planned.

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

• Medium-term objectives confirmed, aiming for leadership in European private asset management.