Eurazeo sells stake in Capzanine to Axa in €82m deal

The transaction amount is approximately €82m, according to a statement by Eurazeo. The sale includes shares in the management company on which Eurazeo will realise a multiple of just over 3x the initial investment, as well as fund shares recently subscribed by Eurazeo.

The change of ownership sees the Capzanine team remain majority shareholders in the business, owning 54%. They will retain control of the company and continue to manage it independently, according to a statement from the firms.

An important motivation for the sale of the Capzanine stake was Eurazeo's recent acquisition of Idinvest, announced in February 2018. Both Capzanine and Idinvest have debt activities and Eurazeo preferred to avoid merging the firms, Unquote understands. 

Axa France has been a leading investor in Capzanine's funds since 2005, and has owned a 22% stake in the firm since 2015. Axa IM, on the other hand, is acquiring a stake in Capzanine for the first time, Unquote understands. 

Eurazeo has owned a 22% stake in Capzanine since 2015, and is now selling it to Axa France and Axa IM. 

Following the sale of Eurazeo's stake, the Axa divisions will jointly own a 46% stake in Capzanine.  

Axa France intends to increase its investments in the next generation of funds. Meanwhile, Capzanine and Axa IM intend to establish a private debt distribution partnership, enabling Axa IM's structured finance team to support Capzanine's development on this asset class.

Through this transaction, Capzanine will open up its capital to a larger number of managers and acquire resources for its international development (particularly in Europe), according to a statement.

This consolidation is the latest in a series that has characterised the French market in the past few years, the latest being Tikehau and DWS entering a strategic alliance agreement and Tikehau acquiring Ace Management.

Axa Group's in-house private equity division, Axa Private Equity, span out in 2013, rebranding as Ardian. 

Founded in 2004 and based in Paris, Capzanine invests as a majority or minority shareholder, as well as a private debt provider (mezzanine, unitranche, senior debt), in unlisted, small and mid-cap companies with an enterprise value in the €30-400m range. Although broad-based, Capzanine typically backs companies in the healthcare, technology, food and services sectors. The firm currently has €2.5bn in assets under management (AUM). Some of its recent investments include Intescia, Recommerce and MBA.

Since 2015, Capzanine has increased its AUM from €1.1bn to €2.5bn. 

Axa France is an insurance company in France supporting 7.3 million retail and commercial clients. Multi-asset investor Axa IM, with approximately €740bn in AUM as of the end of September 2018, employs 2,390 employees around the world and operates out of 30 offices across 21 countries. Axa IM's structured finance investment team manages €38bn in AUM across the non-traditional credit spectrum (including a €11bn global loan platform), and provides clients with sourcing, diversification and spread pick-up services. Axa France and Axa IM are part of the Axa group, a financial protection and wealth management specialist.

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