Eurazeo (RF) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in asset management, with fundraising rising 23% to €4.3bn and a 35.5% FRE margin, supported by international LP expansion.

• Asset management exits and realizations surged, supporting a shift to an asset-lighter model, while portfolio value creation was robust but offset by legacy asset write-offs.

• Net income group share for 2024 was -€430m, mainly due to fair value adjustments and legacy asset impairments.

• Capital returns to shareholders increased, with a 10% dividend hike to €2.42/share for 2024, a proposed €2.65/share for 2025, and a doubling of the share buyback program to €400m.

• Strengthened sustainability leadership, closing €700m for the Transition Infrastructure Fund and launching new impact and health funds.

Financial highlights

• Total AUM grew 4% to €36.1bn; third-party AUM up 10%, fee-paying AUM up 12%, and balance sheet AUM down 7%.

• Management fees reached €421m, up 7% year-over-year; third-party management fees up 14%.

• FRE margin improved by 110bps to 35.5%; FRE earnings up 11% to €150m.

• Asset management contribution up 20% to €153m; investment activity saw a loss of €544m due to fair value adjustments and write-offs.

• Net results group share for 2024 was minus €430m, reflecting strong asset management but negative investment activity.

Outlook and guidance

• 2025 fundraising pipeline is robust and diversified, with strong momentum in direct lending, secondaries, and new evergreen funds.

• Ordinary dividend proposed to increase another 10% in 2025 to €2.65/share; share buyback program set at €400m.

• Asset rotation expected to return to historical 20%-25% of NAV, barring major systemic shocks.

• Performance fees from third parties expected to rise as more funds reach distribution thresholds.

• FRE margin target of 35-40% already reached, with continued focus on cost discipline and earnings growth.