(AOF) – Eurazeo announced that Eurazeo Transition Infrastructure Fund has completed a new closing bringing total commitments to around €420 million, or around 80% of its initial target size, just 3.5 months after its first closing. Since the first closing, the investor base has been diversified. It includes global institutional investors and capital from both dedicated infrastructure allocations and funds classified under Article 9 within the meaning of the Disclosure Regulation (SFDR).
ETIF has invested, alongside its fundraising, in a portfolio of companies in the transition infrastructure sector.
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Key points
– Investment company created in 2001 with 530 portfolio companies;
– 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 (capital-innovation focused on digital), Private Debt (European SMEs and ETIs, etc.);
– Capital structured by pacts between JCDecaux 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 cash of €6.6 billion at the end of September 2022.
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,
– €4.3 billion invested in climate and inclusion across all strategies;
– Continued investments – in transitional infrastructures, in the capital of Neoxam (financial software), Imapole, Sevetys (animal and human health), in tech (1st investor in France and Europe) and in the “brands” activity deployment of strong brands;
– Balanced portfolio, no company representing +10% of the NAV, 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;
– Asset rotation with investments exceeding disposals over the first 9 months;
– After a 38% growth in portfolio turnover at the end of September, expectations for 2022 of an increase in inflows to around €3 billion.
– Confidence for 2023, growth to be fueled by fundraising in 2022.