Eurazeo Paris Ord (EUZOF) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. Thank you for joining this call. Christophe and I are pleased to welcome you to our 2024 full year results presentation. Our presentation will be in three parts. First, I will share with you the financial and non-financial highlights for the year. Second, Christophe will focus on fundraising, commercial dynamic and asset rotation. Third and last, I will detail our financial results. We will then be available to take questions. 2024 marks the first year of execution of the mid-term plan we have presented to investors back in November 2023. We have made progress in the key pillars of the plan. First, asset management is growing dynamically. Fundraising is up 23% relative to 2023 at 4.3 billion euros, which is above our guidance of 4 billion euros. Fee-paying AUM from third parties are up 12%, and management fees from third parties are up 14%. Second, we continue to improve operational efficiency as our FRE margin gained 110 basis points to reach 35.5%. We are already within our 35% to 40% medium-term guidance. As a result, contribution from the asset management activity is up 20%. Third, asset rotation has picked up as we announced. Asset management exits volumes overall tripled, and more specifically, balance sheet realizations doubled to reach 17% of the prior year net asset value, with an average upside of 10% compared to our last mark. Combined with a strict discipline in balance sheet allocation to the funds, as you can see in our numbers, this means that we are moving ahead towards transforming our business model. Fourth, our portfolio remains robust. We recorded another year of strong underlying performance of portfolio companies, which led to broad-based value creation in 2024. This has been nevertheless offset by the write-off of a limited number...