Eurazeo in Cannibal Mode

Despite encouraging developments, the Parisian investment firm controlled by the Decaux family is punished by the market, amid widespread distrust of the private assets category, which has admittedly been prone to all sorts of excesses.

Eurazeo nevertheless closed a solid year, with €39bn in assets under management, up 15% compared to last year, including €30bn on behalf of third parties and €28bn generating management fees.

Fundraising reached €5.5bn, up 28% from last year, i.e. the company's best performance since 2022. Notably, the private equity segment is attracting the bulk of these inflows, whereas private debt previously served as the primary growth engine.

Investment performance, while significantly disappointing, does not yet overshadow this picture. Eurazeo's great strength, which remains one of the most prestigious names in Paris, is that it has successfully diversified its client base, two-thirds of which is now international, while eight years ago two-thirds was French.

Management fees increased by only 3% in 2025, while the contribution from performance fees remains lowish. In a sector regaining its footing after the post-pandemic paralysis, asset monetizations are returning to their former pace at approximately one-fifth of the portfolio.

These divestments generated €2.8bn, funding Eurazeo's consistently generous capital return policy, with a dividend increasing by another 10% and, most importantly, extraordinarily sustained share buybacks.

Between early 2024 and late 2027, Eurazeo intends to cancel a full quarter of its outstanding shares, representing over half of its free float. This strategic direction makes perfect sense, given the discount—theoretical, to be sure—on assets: Eurazeo estimates its net asset value at €102 per share, compared to a current price of €40; this, moreover, does not include the value of its management platform.

In addition to a pleasant dividend yield exceeding 7%, this leaves little doubt about the company's intentions, which is led by the veterans Christophe Bavière and William Kadouch-Chassaing: to reward their shareholders, led by a prestigious group of families, including the predominant Decaux and David-Weil families.

Yesterday, as the controlling families renewed their shareholders' pact, sources indicated that the Gouttman-Kaufmann family, whose interests and investments are managed by Paris-based Standard, had scooped up shares in Eurazeo—whose discount to net asset value is typically the kind of setup Standard looks for.