I was honored and humbled to become CEO of Eurazeo in 2018. I recently reflected on the last year and a half, sharing my vision for Eurazeo in our Annual Report. Below is an excerpt; to find more information on the report, please click here.
You were appointed CEO in March of last year. How do you view the progress Eurazeo has made since then?
Virginie Morgon: The past year and a half was particularly significant for Eurazeo. We had a managerial transition, the acquisition of Idinvest, and the strategic partnership with Rhône. Approximately €3.1 billion was invested or reinvested and nearly €3.1 billion in total or partial divestments were carried out or signed.
Backed by the commitment of our teams and the support of our Board of Directors, Eurazeo has worked to accelerate our diversification strategy and, at the same time, grow each of our investment divisions while seizing value creation opportunities and ensuring steady asset rotation. As a result, we are more international, multi-business and have diverse and ambitious new talent. This year, we are positioned to work towards reaching our objectives amidst an uncertain and volatile economic environment for Eurazeo and the companies it supports.
Personally speaking, I was tremendously proud that the Supervisory Board decided to appoint me as CEO of a firm for which I see great ambitions. I felt great pride at having contributed, alongside my predecessor Patrick Sayer, to the development of a modern, forward-thinking company that can accomplish an executive transition that was natural, confident and respectful.
Where is Eurazeo currently positioned? What are the firm’s strengths?
VM: Eurazeo is one of the leading French investors, with €11 billion in direct investments in French, European and U.S. companies. We are also one of Europe’s most dynamic players and are rapidly expanding in the U.S., where we’ve had an office since 2016.
But what lies behind our strength and appeal is our unique business model. Our firm—€17 billion in assets under management, 235 professionals, and 9 geographies—offers both €6 billion in permanent capital and €11 billion in third-party funds. Not to mention a range of asset classes, a large geographic scope, a deep business network and diverse operational expertise.
Our cardinal principle is responsibility. We are the only investment company in the world to feature five CSR benchmark indicators. We are also among the top 120 most advanced companies worldwide and the top 20 French companies, as determined by Euronext Vigeo Eiris. This is a source of great pride and a fundamental component of our performance. This unique business model makes us an ideal partner for entrepreneurs and management teams at all stages of their development, whether it involves equity or debt.
Eurazeo has been transforming itself over the last 10 years. Why? To meet which challenges?
VM: We have three objectives: boost our investment performance and create more value; reduce and diversify our risks in an uncertain and challenging environment; and diversify and grow our resources.
We have initiated a strategy to meet these goals, based on three priorities. First, we have diversified our business lines and therefore our sources of growth. Once a majority investor in large companies, we have now become a private equity company providing support to businesses throughout their development.
At the same time, we have strengthened our international presence to guide the cross-border growth of the companies we support. This has enabled us to position each of our divisions in relevant markets to support their international development by benefiting from the intermediaries, expertise and networks of a firm that is now present in nine countries across three continents.
Lastly, we have expanded our resources to develop management activity for investor partners. Alongside our permanent capital, which guarantees our independence and long-term investment, this activity will enlarge the scope of our investments and secure a recurring and predictable revenue stream. It is this perfect alignment of interests that Eurazeo will use to build its future growth.
What strategic levers are you counting on in the remainder of 2019, as well as in the years to come?
VM: My ambition is clear: grow our investment divisions so that, individually, they lead their markets. This will be attained through organic growth and is tied to our ability to attract the best talent and further develop our operational expertise.
I think of Eurazeo PME, which is strengthening its local networks in Germany and Spain. I am also thinking of Eurazeo Brands, which has recruited a team in Europe, and Eurazeo Capital, which will further expand its foothold in Europe and the U.S., thanks primarily to our partnership with Rhône.
We also wish to invite investor partners to join some of our strategies, which are now exclusively driven by our own funds, such as Patrimoine and Brands. There is also tremendous opportunity presented by our alliance with Idinvest to launch a new capital growth mutual fund, known as “Eurazeo Growth.”
Finally, our objective is to further grow the funds we manage for investor partners. In 2019, our divisions—Eurazeo Capital, Eurazeo Growth, Idinvest Private Debt and Idinvest private funds—will pursue or initiate fundraising campaigns. Our roadmap for the coming months and years is to strengthen our operational capabilities, expand in Europe and internationally, and develop our resources from investor partners.
Click here to watch and listen to additional reflections on the past year for Eurazeo and what the future holds for us.
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