Eurazeo (RF) Q4 2024 earnings summary

Executive summary

• Achieved strong asset management growth in 2024, with fundraising up 23% to €4.3bn and a 35.5% FRE margin, supported by robust international LP expansion.

• Realizations and exits surged, with buyout exits averaging 2.3x CoC and growth exits at ~4.0x, while balance sheet realizations doubled.

• Portfolio value creation was broad-based (+9%), but legacy asset write-offs and fair value impairments led to a net loss of €430m.

• Shareholder returns increased with a 10% dividend hike to €2.42/share, a proposed 2025 dividend of €2.65/share, and a doubled share buyback program to €400m.

• Sustainability leadership strengthened with new impact funds and top ESG rankings.

Financial highlights

• Assets under management rose 4% to €36.1bn; third-party AUM up 10%, fee-paying AUM up 8% to €27bn, and third-party FPAUM up 12%.

• Management fees reached €421m (+7% YoY); third-party management fees up 14%; FRE earnings up 11% to €150m (35.5% margin).

• Asset management contribution up 20% to €153m; investment activity contribution was -€544m due to fair value losses.

• Net results group share for 2024 was -€430m, mainly due to non-recurring items and portfolio revaluations.

• Net financial debt at €1.3bn (gearing 17%), pro forma €1.0bn (gearing 13%) after announced exits.

Outlook and guidance

• 2025 fundraising pipeline is robust and diversified, with realization volumes and exits expected to increase.

• Ordinary dividend proposed to increase another 10% in 2025 to €2.65/share; share buyback program set at €400m.

• Asset rotation expected to return to historical 20%-25% of NAV, barring systemic shocks.

• Performance fees from third parties expected to rise as more funds reach distribution thresholds.

• Ambition to become the European leader in mid-market, growth, and impact private asset management.