PARIS (Agefi-Dow Jones)–The investment company Eurazeo confirmed its medium-term objectives on Thursday and launched a share buyback program of 100 million euros, after an increase in its economic turnover in first trimester.
“The good performance of the portfolio companies in the first quarter reflects the relevance of Eurazeo’s sector choices. In a volatile economic environment, the group benefits from a diversified and quality portfolio, positioned in structurally buoyant segments such as health, business services, digital, strong consumer brands or the energy transition,” the group said in a statement.
Over the first three months of 2022, economic revenue, which corresponds to consolidated revenue to which is added the proportional share of revenue of equity-accounted companies, stood at €1.1 billion. euros, up 31% year-on-year at Eurazeo scope and at constant exchange rates.
The group’s assets under management (AUM) increased by 45% over one year and by 4.2% compared to the end of December 2021, to 32.16 billion euros.
Fundraising reached 878 million euros, against 785 million euros a year earlier.
Eurazeo has confirmed that it expects its assets under management to double within five to seven years. Assets under management should then reach 60 billion euros, recalled Eurazeo.
The group is still aiming to increase its FRE margin (“Fee related earnings”) in the medium term to 35-40%, compared to around 30% in 2021.
The group has also decided to launch a share buyback program of 100 million euros. “The shares thus acquired are intended to be canceled,” said Eurazeo.
The program begins today and should be completed “by the end of the year,” said Eurazeo Chief Financial and Strategy Officer William Kadouch-Chassaing during a conference call with journalists.
According to the resolutions voted at the general meeting, the group can acquire a maximum of 10% of its own shares at a price not exceeding 150 euros per share. The operation announced Thursday represents about 2% of the capital and the current stock market price is “well below” the threshold and the very intrinsic valuation of the company, underlined the manager. The amount of revalued net assets (ANR) stood at 117.8 euros per share at the end of December 2021.
At 9:35 a.m., the Eurazeo share lost 1.5% to 70.75 euros, while the SBF 120 index fell by 1.9%.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: VLV
EURAZEO FINANCIAL RELEASES:
https://www.eurazeo.com/fr/mediacenter/
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May 19, 2022 03:37 ET (07:37 GMT)