Eurazeo launches PME IV Fund

Eurazeo's PME arm deploys equity tickets of €20-100m, focusing on France-based mid-market businesses with enterprise values of €50-500m.

Eurazeo PME IV has already made two deals. It acquired a majority stake in French insurance business Groupe Premium in March 2021, in a deal valuing the company at €290m. The GP invested in the business alongside Groupe Premium's shareholders Montefiore Investment and the management team led by Olivier Farouz. Eurazeo PME IV's investment amounted to around €100m.

More recently, the fund bought a controlling stake in French cybersecurity business I-Tracing with an investment of around €65m, in a deal that valued the business at €165m. Minority investor Keensight Capital sold its entire stake in the transaction, while Sagard NewGen invested as a minority shareholder in a holding company controlled by Eurazeo. I-Tracing's management team, and founders Theodore-Michel Vrangos and Laurent Charvériat, collectively retained 49% of the company's equity.

Eurazeo's fourth PME fund is expected to be larger than its predecessor, Eurazeo PME III, which held a final close on €658m in July 2017. The GP was initially aiming for a €600m target when it launched the vehicle, which reached a first close on €586m in late May 2017. Eurazeo itself committed €408m, while third-party investors committed €250m.

Prior to this, Eurazeo closed its PME II fund on €520m in March 2015. The vehicle secured €156m from external investors, with the remainder committed by Eurazeo.

In addition to its PME range of funds, Eurazeo is currently investing its flagship vehicle Eurazeo Capital IV, which held a final close on its €2.5bn hard-cap in July 2019. Out of the total amount raised for the fourth-generation fund, Eurazeo provided €1.8bn via its balance sheet, while third party backers committed €700m. The fund targets businesses based in Europe and the US, with valuations in the €500m-1bn range.

Furthermore, the GP is managing its Eurazeo Growth Fund III, which has collected more than €500m so far and has a final target of €1bn. The fund invests in French startups operating across the technology industry. It has invested in 24 companies, including Doctolib, Mano-Mano, Payfit, Contentsquare and Backmarket.

Eurazeo is also currently deploying its Smart City II Venture fund, which held a first close on €80m in February 2021. The vehicle aims at investing to help cities accelerate their transition and enhance their resilience against the pandemic. It targets energy, transport, property technology and logistics startups, primarily in continental Europe and the UK, Israel, the US and Asia.

In addition, the firm manages the Eurazeo China Acceleration Fund, which was launched in partnership with the Chinese Investment Corporation and BNP Paribas, and held a €400m first close in June 2020. The fund invests in French and continental European companies aiming to open new pathways for growth in China.

In total, Eurazeo has €21.8bn in assets under
management, including €15bn from third parties, invested in 450 companies. Headquartered in Paris with further offices in New York, Sao Paulo, Seoul, Shanghai, Singapore, London, Luxembourg, Frankfurt, Berlin and Madrid, the firm specialises in investments across private equity, private debt, real estate and infrastructure.

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• Topics
• Funds
• Buyout
• France
• Eurazeo
• France