Eurazeo raises €345m of third-party money

The Paris-listed private equity manager has targeted external investors for the first time to give the group additional deal-doing capacity and to create a new revenue stream.

Eurazeo, a quoted French private equity company, has held the €345 million first close of Eurazeo Co-investment Partners, a co-investment fund and its first vehicle for third party investors.

The first close was above the planned target of €250 million. Philippe Audouin, member of the executive board and chief financial officer of Eurazeo said the fundraising had gone better than expected, but that the group was not planning to raise its final target above €500m which it expects to hit before the end of the year.
The co-investment fund will enable Eurazeo to increase its investment capacity and to streamline the equity syndication process. Eurazeo also hopes the new fund will increase its recurring revenues.

An analyst said the traditional structure of the fund was a much more efficient model for investors to access Eurazeo’s deal flow than had the company floated a fund.

The fund will invest alongside Eurazeo in every new private equity deal the company does on a pro rata basis, committing €20 for every €100 Eurazeo invests. The first investment is in car hire firm Europcar, a €3.4 billion deal and Eurazeo’s largest ever, sealed by the firm in March this year.

As well as investing through the fund, the partners of Eurazeo Co-investment Partners will be able to benefit from direct co-investment opportunities in the investments concerned.   
Leading investors in the fund include prominent French and international banks and insurance companies.

Separately Eurazeo closed a €1bn credit facility with banks to give it the firepower to provide bridge finance for its deals before syndicating them.