Eurazeo posts 16% NAV increase in 2012

Carmen Reichman
20 March 2013

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French listed buyout firm Eurazeo saw its NAV increase by 16% in 2012, fuelled by improved contributions from portfolio companies and an acceleration of divestments over the past six months.

Eurazeo posted a NAV of €56.8 per share on 31 December 2012, a 16.1% increase on 2011 figures. The firm posted a further 4.2% growth in 2013 with its share price reaching €59.2 on 11 March.

Underpinning Eurazeo's value growth was a steep increase in portfolio rotation. In 2012, the investor sold 13% of its NAV, while 2013 has already seen 14% of its NAV divested. The value of assets sold was €790m between October 2012 and March 2013, more than the total value of exits made by the firm in the past three years. Exits included French company Edenred, on which the GP doubled its invested capital.

Eurazeo had a turnover of €8.33bn in 2012 and reported a steep increase in positive contribution from its portfolio companies, which supported the growing portfolio rotation rate. Portfolio companies yielded €238m (net of finance costs) last year, up from €138m in 2011 and €7m in 2010.

The net loss made from portfolio companies reached €198m, largely attributed to the impact of non-recurring items such as the sale of Motel 6 by Accor, the Europcar refinancing and the sale of real estate assets by ANF Immobilier.

Eurazeo's net cash position represented a total of €642m on March 2011 and the firm has more than €1bn of funds available for investment. The company also plans to hand out a dividend to investors of €1.20 per share.