(AOF) – Eurazeo announced that Eurazeo Transition Infrastructure Fund (ETIF) has reached its first closing with 210 million euros in commitments from the EIF and various institutional investors. The European Investment Fund has invested €75 million, using resources from the European Investment Bank and InvestEU. In addition to Eurazeo’s commitment of €100 million, several institutional investors have made commitments to the fund.
ETIF has already allocated significant capital to a portfolio of three companies. These three companies, whose head offices are located in three different European countries, operate in three different sub-sectors: Ikaros Solar (Belgian developer of rooftop solar installations), Resource (Joint Venture for the development of a sorting plastic waste in Denmark) and Electra (operator of charging stations for electric vehicles based in France).
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Key points
– Global investment company created in 2001;
– 31 billion in assets under management, of which 69% on behalf of third parties: 74% in private equity, 21% in private debt and 5% in real estate;
– Business model:
– 4 strengths: equity guaranteeing the group’s independence, a strong presence in 10 countries and 4 continents, strong and longstanding commitment to CSR,
– 2 priorities: to become the reference investment platform in Europe, each division being number 1 on its market, and to continue the fundraising dynamic,
– 2 complementary growth issues: asset management for predictable and recurring income and investment in companies not exposed to cycles or with strong growth potential;
– Private equity with Eurazeo Capital: (companies valued at over €200m), SMEs (€50 to €200m), EuroBrands (brands with international potential), Eurazeo Growth (technology companies with a proven business model), China Acceleration , Venture (digital-focused innovation capital), Private Debt (European SMEs and ETIs, etc.);
– Capital structured between JC Decaux holding (17.86%), the Michel David-Weill family (16.71%) and the Richardson family (3.55%), Jean-Charles Decaux chairing the 15-member supervisory board and Virginie Morgon the Executive Board;
– Solid debt-free balance sheet with net cash of €21 billion in equity at the end of June.
Challenges
– Medium-term strategy aimed at doubling assets under management to €60 billion in 2026-2028 and a margin of 35-40% compared to 30% in 2021;
– Innovation strategy led by a digital committee within the supervisory board in charge of accelerating the integration of digital into operational activities, analyzing the digital environment and assessing cyber risk;
– “O +“ environmental strategy validated by the SBTi, applicable to the 350 companies in the portfolio and aiming for net zero emissions by 2040: focus on biodiversity / 83% of active funds eligible for the European taxonomy and launch of impact funds / 20 % of managed funds dedicated to the low-carbon economy – maritime, sustainable and digital infrastructure or health, etc.;
– Continuation of investments -rise to 71% in the capital of biotech Kurma, investments in Contentsquare and Electra, Imapole, Sevetys- and fund openings;
– Reinforcement of positions in tech (1st investor in France and Europe) and in the “brands” activity for the deployment of strong brands;
– Balance of the portfolio, no company representing +10% of the NAV and the share of listed companies being limited to 4%.
Challenges
– Monitoring of the revalued net assets, of €115.1, to be compared to the stock market price;
– Continuation of the increase in revenues of the companies in the portfolio posted in the 1st half;
– Expectations, after a decline in disposals resulting in a negative result of €96 million in the 1st half, of results in line with the medium-term strategy;
– €100 million share buyback program.