The investment company Eurazeo announced on Thursday a net profit of 1.82 billion euros for last year, compared to 747 million euros in 2022 on a comparable basis, to be fully credited to a new accounting standard.
This rule led Eurazeo increase the value of its portfolio by 1.9 billion euros, further inflating the net result. It is therefore an accounting entry but not a flow of money.
Excluding non-recurring items, the group posted a net loss of 5 million euros. 2023 was a year of transformation and growth for our company, commented William Kadouch-Chassaing, co-chairman of the Eurazeo management board, during a press conference.
The French group manages 35 billion euros in assets (+12% over one year) on behalf of its institutional investor clients (insurers, bankers, pension funds, etc.), wealthy individuals but also from its own balance sheet. This amount is invested in the capital of companies (start-ups or larger groups) that Eurazeo supports in their development. After a few years, the company resells its shares, hoping for a capital gain.
The management company, which also has an activity as a lender, is remunerated by commissions and part of the possible capital gain. It sold assets worth 1.3 billion euros last year, much less than in 2022 (2.9 billion) and mainly at the end of the year with the announcements of the sales of Dorc, Efeso and Humens in particular, specifies the press release.
3.9 billion euros of investments in 2023
The company has at the same time invested 3.9 billion euros, compared to 4.9 billion in 2022, among others in BMS (re-insurance) and Neoxam (financial software supplier). Eurazeo also announces on Thursday a share buyback program of 200 million euros and will offer its shareholders a dividend of 2.42 euros, an increase of 10% compared to 2022.
The year 2023 was marked by the surprise departure of the former chairman of the management board Virginie Morgon, pushed out against a backdrop of disagreements with the company’s largest shareholder, the Decaux family. A tandem took over: Christophe Bavire, founder of the investment company Idinvest Partners bought by Eurazeo, and William Kadouch-Chassaing, former financial director of Socit Generale.
Mr. Kadouch-Chassaing spoke of a profound human and cultural transformation of the company, with a more marked customer orientation, organizational changes, renewed, more collegial management, work on culture but also on tools, on infrastructure.