Eurazeo receives €340m in commitments for growth continuation fund

Alessia Argentieri
04 February 2021

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Eurazeo will receive €340m of additional commitments for its Eurazeo growth strategy from a group of international investors.

The investor group is composed of institutional investors from Europe and North America, representing collectively more than €500bn in assets under management. It comprises both returning investors and new LPs.

The investors will commit to a newly created continuation fund that will acquire a 32% stake in Eurazeo Growth assets, which were financed through the Eurazeo balance sheet.

Eurazeo will hold on to the remaining 68% of these assets and maintain full control through the management of the continuation fund.

In addition to funding the acquisition of a 32% stake, the commitments received for this transaction will also provide follow-on capital for the portfolio companies and financing for new investments made by the Eurazeo Growth team.

Through this transaction, which is expected to close within Q1 2021, Eurazeo will receive cash proceeds of €215m.

The transaction will generate an IRR of around 25% on the investments that are being realised.

Eurazeo Growth is managed by a team of 15 professionals based in Paris, London and Berlin.

Eurazeo Growth III has collected more than €500m so far. The fund, which was launched in September 2019 with a €1bn target, invests in French startups operating across the technology industry. It has backed 24 companies, including Doctolib, Mano-Mano, Payfit, Contentsquare and Backmarket.

Headquartered in Paris, Eurazeo is a global investment firm specialised in private equity, real estate and private debt. It has a portfolio of €18.8bn in assets under management, including €13.3bn from third parties, invested in 430 companies.