Full Year 2024 Eurazeo SE Earnings Call Transcript
Key Points
- Eurazeo SE (EUZOF) reported a 23% increase in fundraising, reaching EUR4.3 billion, surpassing their guidance of EUR4 billion.
- Fee-paying assets under management (AUM) from third parties increased by 12%, and management fees from third parties rose by 14%.
- The company improved its operational efficiency, with the FRE margin gaining 110 basis points to reach 35.5%, aligning with their medium-term guidance.
- Eurazeo SE (EUZOF) increased its ordinary dividend by 10% to EUR2.42 per share and significantly expanded its share buyback program to EUR400 million for 2025.
- The company maintained top rankings in sustainability benchmarks and strengthened its line of impact funds, with the Eurazeo transition infrastructure fund closing 40% above its initial targets.
- The net value of Eurazeo SE (EUZOF)'s portfolio decreased by 5% in 2024, with a negative contribution of EUR544 million from the investment company.
- The company faced a write-off of two legacy assets, WorldStrides and Tori, impacting the portfolio's value by EUR320 million.
- Despite strong earnings growth, there was a compression in valuation multiples for some assets, particularly in the second half of 2024.
- The growth equity portfolio required further adjustments, with significant markdowns on smaller legacy lines.
- The company's real estate value creation was limited to 1% in 2024, with adjustments in the office segment affecting overall performance.
[technical difficulty] It's for the year. Second, Christo will focus on fundraising, commercial dynamic, and asset audation. So, the last, I will detail our financial results. We will then be available to take questions. 2024 marks the 1st year of execution of the mid-term plan we have presented to investors back in November 2023.
We have made progress in the key pillars of the plan. First, asset management is growing dynamically fundraising is up 23% relative to 2023 at EUR4.3 billion which is above our guidance of EUR4 billion. Fee paying AUM from third parties are up 12%, and management fees from third parties are up 14%.
So again, we continue to improve operational efficiency as our FRE margin gain 110 basis points to reach 35.5%. We are already within our 35% to 40% medium term guidance. As a result, contribution from the asset management activity is up 20%. So, asset rotation has picked up as we announced.
Asset management exits volumes overall tripled and
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