Eurazeo: Europe's Private Equity Metamorphosis

How a 140-Year-Old French Water and Gas Utility Became One of Europe's Most Powerful Private Markets Platforms

---

I. Introduction: The Central Question

Imagine standing on the Place de l'Opéra in Paris, 1881. Gas lamps flicker along the boulevards. A company called Gaz et Eaux has just been founded to distribute water and gas to households across western and northern France. It is, by any measure, a prosaic industrial utility—the kind of business that exists to serve a practical purpose and generate modest returns for patient shareholders.

Fast forward 144 years. At the end of June 2025, Eurazeo Group Assets Under Management (AUM) totaled €36.8bn, up +4% over 12 months. The company now supports over 600 companies across multiple continents, operates 13 offices from Paris to Shanghai to São Paulo, and has transformed itself into what its current leadership calls "Europe's leading private markets platform in the mid-market segment."

The metamorphosis from gas utility to global investment powerhouse is one of the most remarkable corporate transformations in European business history. But this isn't just a story about change—it's a story about what happens when permanent capital meets professional investment management, when family dynasties hand over the reins, and when a publicly-listed entity tries to compete with traditional private equity fund structures.

Eurazeo SE is a leading European investment group with diversified assets under management of EUR 36.1 billion, including EUR 27 billion on behalf of institutional and individual clients through its private equity, private debt, real estate and infrastructure strategies. The group supports over 600 mid-market companies, leveraging the commitment of its 400 employees, its sector expertise, its privileged access to global markets via 13 offices in Europe, Asia and the United States.

The central tension animating Eurazeo's story is deceptively simple: Is being a publicly-listed private equity firm a structural advantage or a structural disadvantage? Traditional private equity operates on a fund model—raise capital from limited partners, invest it over a defined period, exit investments, return capital to investors, and repeat. Eurazeo, by contrast, has permanent capital from public shareholders, can invest without the time pressure of fund lifecycles, but must also satisfy quarterly earnings expectations and deal with a stock price that often trades at a substantial discount to its net asset value.

This tension—between patient capital and market impatience, between operational excellence and financial engineering, between European sensibilities and Anglo-Saxon PE practices—runs through every chapter of Eurazeo's evolution. It shapes how the company invests, how it creates value, and ultimately, how investors should think about it.

---

↑ Back to Top

II. Origins: The Lazard Connection & 19th Century Roots

From Gas Lamps to Financial Holdings

Gaz et Eaux was founded in 1881 and specialized in the distribution of water and gas in western and northern France. Following the nationalization of gas in 1945, it kept its water activity until 1976, when it gradually changed from a portfolio company at the end of the 1970s, to a pure investment company in the 1990s. It was renamed Azeo in 1999.

The transformation from operating company to investment vehicle was gradual, almost accidental. After World War II, France nationalized its gas industry, stripping Gaz et Eaux of its core business. The company retained its water operations for three decades before eventually pivoting entirely toward financial holdings. By the 1990s, what had once been an industrial utility had become a sleepy portfolio of French equities—a vehicle searching for a purpose.

The Lazard-David-Weill Dynasty

To understand Eurazeo, you must understand Lazard and the David-Weill family. Michel David-Weill (November 23, 1932 – June 16, 2022) was a French investment banker and chairman of Lazard and Eurazeo. Michel David-Weill was born into a Jewish family on November 23, 1932. His father, Pierre David-Weill (1900–1975), was the chairman of Lazard Frères; his mother was Berthe Haardt. His great-grandfather, Alexandre Weill, worked at Lazard Frères, a firm co-founded by his cousins, Alexandre, Elie, and Simon Lazard.

The connection between the three Lazard brothers—Alsatian Jews who founded their firm as a dry goods business in New Orleans in 1848—and the David-Weill family stretched back generations. In 1975, his father died and he inherited his equity stake in Lazard, becoming the largest stakeholder in both Lazard New York and Lazard Paris, while also holding stakes in Lazard London. In 1977, when Meyer became sick and Rohatyn turned down an offer to replace him, David-Weill was named chairman.

Michel David-Weill became one of the most influential figures in global investment banking. By the power provided in clause 4.1 of the Lazard partnership agreement, he alone had the power to set compensations and the right to fire any partners at his discretion. Under David-Weill's direction, Lazard began to expand its business from traditional merger and acquisition advising to areas such as asset management and municipal bond. He also made numerous hires, including Steven Rattner as well as Kenneth M. Jacobs the current Chairman of Lazard. Lazard's profits also jumped from $5 million in the late 1970s to $500 million in the late 1990s.

The Complex Web of Investment Vehicles

The creation of Eurazeo in 2000 represented the merging of various investment vehicles developed by Lazard LLC and the David-Weill family since the 1960s, including Lazard's own long-term shareholdings in a number of its major clients, such as stakes in Danone, Pearson, and Assicurazioni Generali. In 2000, then-Lazard chairman Michel David-Weill completed the consolidation of the various components of the Lazard group into a single entity, Lazard LLC.

Eurafrance, was founded as an investment company in 1969. It became a shareholder of Azeo in 1985 and increased its shareholding on a regular basis until a full takeover bid was launched at the end of 2000. In April 2001, Eurafrance and its subsidiary Azeo formally merged to become Eurazeo.

The merger was anything but straightforward. In the late 1990s, however, the publicly listed investment companies came under attack: the highly visible French "corporate raider" Vincent Bolloré had gained a 31 percent stake in Rue Impériale, while the banking group UBS Warburg had built up stakes of 10 percent in Eurofrance, 7 percent in Gaz et Eaux (which changed its name to Azeo in 1999, and 5 percent in Immobilière Marseillaise. These shareholders began to pressure Lazard to simplify its investment holdings, in large part because the complex holding structure was seen as depressing the publicly listed companies' share prices. When UBS Warburg threatened to launch a takeover of Azeo, David-Weill gave in.

Eurazeo was formed through the mergers of international banking group Lazard LLC's investment vehicles, including Eurafrance and Azeo, and its French real estate holdings Rue Impériale and Société Immobilière Marseillaise, which were merged into Eurazeo in 2004. These mergers served to separate the operations of Lazard and the holdings of the David-Weill family, as Lazard prepared for its public offering in 2005. Eurazeo remains a major shareholder in Lazard, and that holding accounts for a major part of Eurazeo's total assets (nearly one-third in 2003).

The separation of Eurazeo from Lazard was both structural necessity and philosophical statement. Lazard was preparing for its own IPO under the increasingly aggressive leadership of Bruce Wasserstein, who had been brought in to revitalize the firm but was pushing for changes that Michel David-Weill resisted. Eurazeo would become the David-Weill family's primary investment vehicle—a permanent capital base independent of Lazard's evolving corporate structure.

The Significance of Permanent Capital

What emerges from this tangled history is a crucial insight: Eurazeo was born with something few private equity firms possess—permanent capital. Unlike traditional PE funds that must return capital to investors after a defined period (typically 7-10 years), Eurazeo's publicly-listed structure meant it could hold investments indefinitely. This would prove to be both blessing and curse in the decades ahead.

---

↑ Back to Top

III. The Patrick Sayer Era: Building the Modern Eurazeo (2001–2018)

A New Sheriff with New Rules

This changed in 2001, when David-Weill brought in a new CEO for Eurafrance, Patrick Sayer, who had been working for Lazard LLC in New York. Sayer agreed to take over the direction of Eurazeo, on the condition that he be granted the right to act independently of Lazard. As Sayer told Business Week: "I didn't want to be head of Eurazeo and report to Lazard partners." In the face of continued pressure from Eurafrance's minority shareholders, which demanded that the investment company act separately of Lazard, Weill granted Sayer's request.

Patrick Sayer was no ordinary banker. Previously, Patrick Sayer was a Managing Partner at Lazard Frères et Cie in Paris, which he joined in 1982, and a Managing Director of Lazard Frères & Co. in New York, which he joined in 1999, becoming global head of mergers and acquisitions for the technology sector. Patrick Sayer served as Chairman of the Management Board of Eurazeo, one of Europe's leading listed investment companies, from 2002 to 2018. He became a member of Eurazeo's Supervisory Board in 2018. When he stepped down from the Board in July 2023, Eurazeo had over 30 billion euros in assets under management.

Patrick Sayer est un homme d'affaires, spécialisé notamment dans le capital-investissement. Il est diplômé de Polytechnique, de l'École des Mines de Paris (option Écologie), ainsi que de la SFAF. Il a débuté sa carrière en 1982 au sein de la société de gestion Lazard Frère, passant notamment par un poste d'Associé-Gérant en France et de Managing Director à New York. A graduate of the elite École Polytechnique and École des Mines, Sayer brought both technical rigor and M&A expertise to his new role.

The 2002 Strategic Pivot

In 2002, Sayer led Eurazeo on a redefinition of its strategy. The group now transformed itself into an active capital investment firm with a focus on the private equity and leveraged buyout markets.

This pivot was revolutionary. For decades, Eurazeo (and its predecessor entities) had been passive holders of diversified equities—essentially a publicly-traded mutual fund. Sayer proposed something radically different: transform Eurazeo into an active private equity investor that would take controlling or influential positions in non-listed companies and work alongside management to create value.

The strategy required Eurazeo to sell its legacy holdings and redeploy the capital into new opportunities. By then, Eurazeo had already begun to sell off some of its "traditional" holdings, including its stake in Generali. That sale alone raised more than EUR 900 million for the company.

The LBO Era: Deal After Deal

With fresh capital and a new mandate, Sayer moved aggressively. Eurazeo struck its first success in February 2003, when the company paid Fiat EUR 764 million to take over majority control of its Fraikin truck and industrial vehicle rental and leasing business. In April of that year, Eurazeo succeeded again, paying EUR 450 million ($486 million) to acquire 23 percent of Eutelsat, the leading satellite operator in Europe.

At the time, Eurazeo's strategy consisted in selling historical investments (Generali, Mediobanca, Lazard and Terreal), while at the same time investing in a wide range of companies (Rexel, ANF, Eutelsat, Accor and B&B Hotels). In 2006, Eurazeo stepped up its European expansion through the acquisition of operators present in European markets. That year, it acquired Europcar Europe's number one car rental company, 2006; in 2007, it acquired APCOA Parking, the European leader in parking lot management.

The deal pace was extraordinary. Between 2003 and 2010, Eurazeo assembled a portfolio that read like a who's who of European mid-cap leaders:

• Fraikin (2003): €764 million for Europe's leading truck rental business
• Eutelsat (2003): €450 million for a 23% stake in Europe's premier satellite operator
• Rexel (2005): Took full control of the electrical distribution giant
• Accor (2005): Became a major shareholder in the hotel group
• B&B Hotels (2005): Acquired the budget hotel chain holding company
• Europcar (2006): €3.3 billion for Europe's #1 car rental company
• APCOA Parking (2007): European leader in parking lot management
• Elis (2007): Textile rental and cleaning services leader

Eurazeo is, in particular, the majority or core shareholder in Accor, ANF Immobilier, APCOA, Edenred, Elis, Europcar, Foncia, Fonroche Énergie, Moncler, Rexel, 3S Photonics and Eurazeo PME.

The Sayer Playbook

What distinguished Sayer's approach was his insistence on operational involvement. In the 2000s, Eurazeo's high-profile investments (e.g. Accor, Europcar, Elis) saw the firm deeply involved in their development, providing operational guidance especially during restructuring and growth phases.

Sayer articulated a philosophy that would become central to Eurazeo's identity. As he explained in company communications: "We're an investment company, not a fund." Because we have no time constraints. We're an investment company, not a fund. The permanent capital structure allowed Eurazeo to take positions that traditional PE funds—with their typical 5-7 year hold periods—couldn't afford.

Look at Rexel. In 2005 we bought a cyclical company which was a distributor of electrical supplies following the real estate cycle and mainly based mainly in France. A few years later, we've just divested 15% of our investment under very favorable conditions. Rexel is a worldwide leader supported by Asian and U.S. growth and was able to develop itself in services associated with electrical equipment. Rexel symbolizes what Eurazeo can do.

Building the Infrastructure

By the time Sayer prepared to hand over to his successor in 2018, he had fundamentally transformed what Eurazeo was. Thanks to his private equity knowledge, he was elected as Chairman of AFIC, now France Invest, in 2006. Previously, Patrick Sayer was a Managing Partner at Lazard Frères et Cie in Paris.

Under his leadership, Eurazeo had grown from a €4 billion holding company to a €15+ billion investment platform. More importantly, he had established the cultural DNA that would define the firm: active ownership, operational involvement, European focus with global ambitions, and a commitment to long-term value creation over financial engineering.

---

↑ Back to Top

IV. The Moncler Masterclass: Eurazeo's Defining Investment (2011–2019)

A Down Jacket and a Vision

In 2009 and 2010, Virginie Morgon—then a rising star on Eurazeo's Executive Board—was studying an Italian company that made luxury down jackets. Moncler had been founded in 1952 in Grenoble, France, as a maker of technical mountain equipment. Under the creative leadership of Remo Ruffini, who had acquired control in 2003, it was evolving into something more—a fashion brand with serious luxury aspirations.

C'est d'abord sur Carlyle que Remo Ruffini a cherché à s'appuyer pour développer Moncler à l'international. Le fonds américain acquiert 48% des parts en octobre 2008. Dès 2011, Carlyle tente de valoriser son investissement via une introduction en Bourse, mais la crise financière liée notamment à la dette des pays de la périphérie européenne fait échec au projet. En juin 2011, Carlyle revend donc la majorité de ses parts (63%) à Eurazeo et ses co-investisseurs, qui avancent 418 millions d'euros pour 45% du capital.

The timing was auspicious. Carlyle had attempted to IPO Moncler but was stymied by the European sovereign debt crisis. Eurazeo stepped in with a different proposition: patient capital and a commitment to building long-term value rather than rushing to exit.

PARIS - Eurazeo, Remo Ruffini, Carlyle and Brands Partners 2 announced today that they have reached an agreement for Eurazeo to acquire a 45% stake in Moncler, the luxury apparel group, for a price of €418m. Remo Ruffini, the Chairman and Creative Director, will retain a 32% stake in the Company and Carlyle a 17.8% stake.

The transaction values the Moncler Group at an Enterprise Value of €1.2bn. This Enterprise Value represents a 12x 2010 EBITDA multiple.

The Transformation Strategy

For eight years, Eurazeo used its full range of expertise, first to identify the Moncler brand, then strengthen it and finally transform it. After acquiring a 45% stake in the company in 2011, and the Moncler's IPO in Milan in December 2013, Eurazeo sold fully its investment in early 2019. As soon as Eurazeo acquired its stake, Moncler's development was boosted through an ambitious growth and transformation strategy that had two main focal points. Firstly, products: the company developed an enhanced range of products that were more luxurious and ever more audacious, while remaining faithful to the brand's original DNA.

The value creation playbook was multi-dimensional:

Product Evolution: Moncler moved upmarket, launching higher-end collections including Gamme Rouge (designed by Giambattista Valli) and Gamme Bleu (designed by Thom Browne). The product range expanded into knitwear, footwear, and accessories while maintaining the iconic down jacket at its core.

Distribution Transformation: Le groupe a surtout a redéfini sa stratégie de distribution, passant de 60 à 193 points de vente en propre, plus 55 corners à sa marque, jusqu'à vendre en direct les trois quarts de la production désormais. Enfin, Moncler s'est largement internationalisé - y compris dans des villes à climat chaud comme Hong Kong, Miami, Los Angeles et Cannes. "La vision à long terme d'Eurazeo, sa vision stratégique très claire et son rayonnement international nous ont été d'une grande valeur", a souligné Remo Ruffini.

Geographic Expansion: From the French Alps to Tokyo, New York, London and Milan: between 2011 and 2019, Eurazeo's teams supported the Moncler brand's international development, making it a global signifier of luxury and a well-known and highly coveted brand in all four corners of the globe.

Management Strengthening: Eurazeo also championed the strengthening of Moncler's management team, helping recruit a seasoned CFO and supporting the founder/CEO Remo Ruffini in strategic decisions. By the time Moncler went public in 2013, its revenues and profitability had grown dramatically.

The IPO and Beyond

Dubbed by many in the trade as the 'new Burberry', Moncler enjoyed a sound success at the trading floor, seeing its shares surged almost 50 percent on the first day of trading. Shares at Moncler closed gained 40 percent by the close of their first trading session, raising 574 million pounds in what was the largest float seen on the Milanese bourse since Prada's in 2010. At the close of its first trading day, the Milan-listed company is worth 3.7 billion pounds after it received 20 billion pounds in orders from investors.

Plus solidement structurée et bénéficiant d'une accélération supplémentaire, Moncler arrive en Bourse en décembre 2013, à un prix de 10,20 euros par action. L'ouverture du capital permet déjà à Eurazeo de récolter environ 270 millions d'euros, pratiquement sa mise initiale, tout en conservant une participation résiduelle de 19,71% à rentabiliser au fil du temps.

The Extraordinary Returns

In financial terms, Moncler floated on the Milan Stock Exchange in 2013 and has been a real success story. In eight years, Eurazeo multiplied its investment by 4.8, receiving proceeds of €2 billion when it sold its stake.

Cela porte à 1,4 milliard d'euros le produit total engrangé par Eurazeo sur l'intégralité des ventes de ses actions Moncler depuis son arrivée au capital. En huit ans, la firme a multiplié son investissement initial par 4,8, soit un TRI (taux de rentabilité interne) de 43% par an.

Eurazeo said its eight-year investment in Moncler had generated proceeds of €1.4 billion and an internal rate of return (IRR) of 43 percent.

A 43% IRR over eight years is extraordinary by any measure. For context, the top-quartile private equity funds globally typically target IRRs of 20-25%. Moncler wasn't just a good investment—it was a generation-defining trade that established Eurazeo's reputation for luxury brand building.

Dans le même temps, le chiffre d'affaires a progressé de 280 millions en 2010 à 1,4 milliard d'euros l'an dernier. L'Ebitda a progressé de 91 millions en 2010 à 500 millions.

The operational transformation was stunning: revenues grew from €280 million in 2010 to €1.4 billion, while EBITDA expanded from €91 million to €500 million. This wasn't financial engineering—it was genuine business building.

---

↑ Back to Top

V. The Idinvest Acquisition & Asset Management Pivot (2017–2018)

A Transformational Deal

One month later, on 29 December 2017, Eurazeo announced the acquisition of a 70% interest in Idinvest Partners, thereby doubling the amount of its assets under management, from €8 billion to €16 billion.

Eurazeo a rapporté ce jeudi après marché avoir procédé au rachat de 70% du capital de la société Idinvest Partners. Eurazeo avait annoncé le 5 février dernier un accord définitif entre les parties selon lequel l'IDI, société d'investissement cotée sur Euronext Paris, s'engageait à vendre l'intégralité de sa participation dans Idinvest, soit 51% du capital. Cette opération participe directement à la stratégie de long terme d'Eurazeo de devenir le partenaire de référence des entreprises et des entrepreneurs, à tous les stades de leur développement. Elle conforte également son modèle dual à travers le développement de la gestion pour compte de tiers. Le prix d'acquisition des titres payé à la finalisation de l'opération s'élève à 230 millions d'euros et valorise Idinvest à 310 millions.

Idinvest Partners, founded under the name AGF Private Equity, S.A in 1997, is a European private equity and venture capital firm. Operating as part of Allianz until 2010, Idinvest Partners then became independent. Idinvest Partners is based in Paris, France and has further offices in Frankfurt (Germany), Dubai, Madrid, Spain and Shanghai, China. Since its inception, Idinvest Partners has invested in more than 4,000 European businesses. With an excess of €8 billion in assets under management, Idinvest Partners focuses on the financing of small and medium-sized European enterprises at various stages of growth.

The Idinvest acquisition was strategic on multiple levels:

1. Scale: It instantly doubled Eurazeo's AUM
2. Capabilities: Idinvest brought leading positions in private debt and venture capital
3. Third-Party Capital: Idinvest was primarily a third-party asset manager, accelerating Eurazeo's shift from balance-sheet investor to fee-generating platform
4. Leadership: The deal brought Christophe Bavière—Idinvest's founder—into the Eurazeo orbit

The Virginie Morgon Era Begins

One month later, on 29 December 2017, Eurazeo announced the acquisition of a 70% interest in Idinvest Partners, thereby doubling the amount of its assets under management, from €8 billion to €16 billion. These two large-scale acquisitions coincided with Virginie Morgon's full assumption of office at the head of the company on 19 March 2018. Patrick Sayer had led Eurazeo for fifteen years.

Virginie Morgon, who is also CEO of Eurazeo North America, will start in her new role on 19th March 2018, when Patrick Sayer's fourth mandate will end, a sign of continuity and of a soft transition. Morgon stated that, though the group's future general manager has not yet been identified, the group's board and management committee are likely to be reviewing nominations early next year. Her appointment was unanimously approved by the Supervisory Board, and was described by the group as "a natural transition." "For me, this is a seamless transition," said Patrick Sayer, who was put in charge of Eurazeo in 2002, a year after the company was established.

Morgon's background was ideal for the role. Morgon brings years of financial expertise to her new venture, having transformed Eurazeo into a global, multi-strategy investment firm managing over €20 billion in diversified assets. A former Lazard Ltd. investment banker, she has advised major corporations such as Danone, Publicis, and Renault, and was appointed Lazard's youngest managing senior partner. Her leadership at Eurazeo from 2018 until her departure last year solidified her reputation as a pioneering force in the private equity world.

Ex-président de Lazard en France, Bruno Roger lui a offert en 2001 l'opportunité de devenir la plus jeune associée gérante chez Lazard à seulement 32 ans alors que l'univers de la finance était quasi exclusivement masculin. PDG de la banque Lazard et président du Conseil de Surveillance d'Eurazeo, Michel David-Weill l'a, quant à lui, soutenu en lui accordant une confiance indéfectible.

Building the Multi-Strategy Platform

Under Morgon's leadership, Eurazeo accelerated its transformation into what it called a "multi-strategy platform." The firm was no longer just a buyout shop—it offered capital solutions across the corporate lifecycle:

• Venture Capital: Seed to Series C funding for tech startups
• Growth Capital: Late-stage investments in scale-ups
• Small-Mid Buyout (PME): Investments in French SMEs
• Mid-Large Buyout (Capital): Traditional LBO in mid-market European companies
• Private Debt: Direct lending to mid-market companies
• Real Assets: Real estate and infrastructure investments

With almost €6 billion of assets under management in Tech focused strategies, Eurazeo has supported many companies in segments including SaaS (Payfit, Contentsquare, Dataiku, Devo and Doctolib), fintech (Qonto, Younited Credit, Wefox, Tink and Thought Machine), marketplaces (BackMarket, Ankorstore and Vestiaire Collective). Eurazeo, a major player in the tech sector for over 20 years, has taken part in all large fundraising transactions by French Tech companies since the start of 2022 (Qonto, Payfit, Ankorstore and Backmarket), thereby confirming its status as a leading private investor in the French Tech industry.

Today, the Group has investments in 11 of France's 26 unicorns and in 24 of the Next 40's constituent companies. Tech is strategically crucial for Eurazeo, which helps the best entrepreneurs in France and Europe to develop innovative, high-performance business models.

The Integration of Idinvest

This acquisition, which according to the terms of the agreement signed in 2018 was to be completed in successive stages in 2021 and 2022, consolidates the organization of the Group to promote its strategic project. The acquisition of all of the capital of Idinvest is a logical step. The decision to accelerate the operation confirms the mutual ambition of Idinvest's partners to fully engage in the Group's strategic project and become a European leading benchmark for companies at every stage of their development. With this operation, Eurazeo is offering its shareholders, partner investors and the management teams of our portfolio companies the strength of a unique and integrated Group that has diversified into four asset categories and is made up of expert teams in 10 countries.

---

↑ Back to Top

VI. The 2023 Leadership Shakeup & New Strategic Direction

A Sudden Departure

On February 6, 2023, the private equity world was surprised by news from Paris. Eurazeo SE has nominated a new executive board that will be led by two chairmen, Christophe Baviere and William Kadouch-Chassaing, after some of the firm's major shareholders succeeded in their effort to oust Virginie Morgon. The chairman of the board and chief executive officer positions will be rotated annually, with the first chairman being Bavière and Kadouch-Chassaing serving as CEO. Baviere was senior managing partner while Kadouch-Chassaing was general manager in charge of finance and strategy.

PARIS — Virginie Morgon, who piloted Eurazeo to become one of Europe's most prominent private equity players, is stepping down as chief executive officer and will be replaced by a four-member executive board. Perhaps best known in fashion circles for spearheading Eurazeo's 2011 investment in Moncler and its 2019 divestment, which netted the fund around 1.4 billion euros in proceeds, Morgon vastly expanded the firm's international profile, even as it remained an active player in the hunt for promising fashion and beauty brands. Morgon's exit was sudden and the management overhaul was decided during weekend meetings.

The death in June 2022 of Eurazeo founder and former Lazard executive Michel David-Weill, who brought Morgon into Eurazeo in 2008, had rebalanced the power within the board, the source said. PARIS - French investment firm Eurazeo ousted Chief Executive Virginie Morgon on Monday and named a new executive board following a row with the group's number one shareholder, the Decaux family, a source close to the matter said. The board of Eurazeo, which has 32.4 billion euros ($34.85 billion) under management including large stakes in some of the biggest French startups, met from around 1500 GMT on Sunday until late into the night and came to the conclusion that Morgon, a former M&A banker at Lazard, had to go, the source said. Jean-Charles Decaux, Eurazeo's chairman, pushed for the decision after a number of matters caused friction between Morgon and the Decaux family, which owns 18% of Eurazeo, the source said.

The shake-up is part of the GP's efforts to accelerate its development towards third-party asset management, optimize its capital allocation and continue to improve the company's financial and non-financial performance, it said. "With the appointment of a new, collegial, and focused executive board… the board has sought to instill a new dynamic to accelerate the development of Eurazeo's activities and to deploy a high-performance strategy creating value for the benefit of all its stakeholders," said Jean-Charles Decaux, president of the supervisory board.

Après 14 ans passés chez Eurazeo, dont quatre en qualité de présidente du directoire, le couperet tombe pour Virginie Morgon.

The New Dual Leadership

The group announced her departure on Monday alongside the nomination of a new executive board. The board will include Christophe Bavière and William Kadouch-Chassaing as chairmen, as well as Sophie Flak and Olivier Millet.

The new leadership brought complementary backgrounds:

Christophe Bavière: Founder and chairman of Idinvest Partners, with deep expertise in private debt and growth capital. Under his leadership, Idinvest's AUM had grown sevenfold over ten years before its acquisition by Eurazeo.

William Kadouch-Chassaing: Former general manager in charge of finance and strategy, bringing CFO-level financial discipline and strategic planning capabilities.

The 2024-2027 Strategic Plan

This year, we made headway in all the announced criteria: increased fundraising, higher revenue and margin, sharp upturn in asset rotation, quality of portfolio company performance. The share buyback program will be doubled in 2025 and a 10% increase in the ordinary dividend will be proposed at the next Shareholders' Meeting. In a market that remains uncertain, we expect to see a further increase in exits and improved value creation prospects.

The new leadership articulated clear priorities:

1. Accelerate Third-Party Asset Management: Grow fee-paying AUM from institutional and retail clients
2. Optimize Capital Allocation: More active portfolio rotation to crystallize value
3. Improve Financial Performance: Increase margins on asset management activities
4. Maintain ESG Leadership: Continue the O+ sustainability strategy

The Group presented its growth outlook at a Capital Markets Day on November 30, 2023, and its ambition to become the private asset management leader in Europe in the mid-market, growth and impact segments. The objectives presented at this event are confirmed.

Early Results

Fundraising: EUR4.3 billion raised in 2024, a 23% increase year-on-year. Fee Paying AUM: Up 12% in 2024. Management Fees: EUR421 million in 2024, up 7% from the previous year.

The company improved its operational efficiency, with the FRE margin gaining 110 basis points to reach 35.5%, aligning with their medium-term guidance. Eurazeo SE (EUZOF) increased its ordinary dividend by 10% to EUR2.42 per share and significantly expanded its share buyback program to EUR400 million for 2025.

As of September 30, 2025, Eurazeo Group Assets Under Management (AUM) totaled €37.4bn, up +5% over 12 months. In the first nine months of 2025, Eurazeo continued to gain market share, raising funds of €3.2bn from its clients, up +4% year-on-year (€3.0bn in 9M 2024) in a global fundraising market declining by more than 10%.

---

↑ Back to Top

VII. The Operating Model Deep Dive

The Eurazeo Value Creation Philosophy

What makes Eurazeo distinctive in the European private equity landscape? Eurazeo is a Paris-headquartered investment firm with roots dating back to the late 19th century, but in its modern form it emerged in 2001 from a merger of Azeo and Eurafrance. Historically, Eurazeo functioned more like a holding company, making long-term investments in French industries. This heritage meant that from early on, Eurazeo took a hands-on approach with its portfolio, often having board representation and involvement in strategic decisions of its holdings – a precursor to the formal operating partner model. As private equity practices evolved in Europe, Eurazeo transformed into a multi-asset global investment manager, and with that transformation, it built out a structured operating partner program.

The Dual Culture

The firm embodies a distinctive blend of traditions. On one hand, there's the French/European corporate culture—patient, relationship-oriented, with a focus on partnership with entrepreneurs. On the other hand, there's the Anglo-Saxon private equity discipline—performance metrics, value creation plans, active operational involvement.

Another example is Europcar, the car rental company Eurazeo owned from 2006 to 2015. To manage this, Eurazeo often co-invests with strategic partners (like its Eurazeo Capital funds invest alongside the Eurazeo balance sheet and sometimes with other LPs). In these deals, Eurazeo's operating partners might work alongside co-investors' teams too. A notable element of Eurazeo's structure is its Eurazeo PME (now called Small-mid Buyout) arm which historically specialized in French SMEs – this team has a tradition of very active operational involvement, even more hands-on than the large-cap deals. They have Operating Partners who supervise multiple smaller companies, providing guidance on things like internationalization or add-on acquisitions.

Longer Hold Periods

The permanent capital structure enables holding periods that traditional PE funds cannot match. Some investments have been held for 5-10+ years, allowing for transformative initiatives that require patience—overhauling business models, executing series of international acquisitions, building management teams over time.

As a reminder, the value of the Eurazeo balance sheet portfolio has increased significantly in recent years (+10% per year on average over 5 years).

Case Study: Tech Portfolio

Investing in this segment for over a decade, Eurazeo has identified and supported the development of high-growth companies that have become market leaders, such as Doctolib, Contentsquare, Vestiaire Collective, and Backmarket.

The momentum of Growth companies remained solid overall (average revenue growth of +14%) and the portfolio's largest companies, such as Doctolib, ContentSquare or BackMarket, maintained steady growth and are close to becoming profitable.

The firm's tech investments showcase its value creation approach:

• Doctolib: Europe's leading health tech platform, supported through multiple funding rounds
• ContentSquare: Digital analytics unicorn, backed from early stages
• BackMarket: Refurbished electronics marketplace, scaled internationally
• Vestiaire Collective: Luxury resale platform, expanded globally

The Operating Partner Network

Fadel tells Sifted fundraising started in September 2024, over a year after the departures, with a team including fresh recruits like partner Raluca Ragab, previously at Goldman Sachs, and operating partner Philippe Vimard, the former CTO of Doctolib and Klarna. Eurazeo's growth investment team is now 17-strong and also includes 5 operating partners, across France, the UK, Germany and Spain.

---

↑ Back to Top

VIII. The ESG & Impact Leadership Story

A Two-Decade Commitment

Sustainability and impact are at the core of our business model, driving long-term value creation and resilience. Through our ambitious O+ strategy, we support both the Group and our portfolio companies towards sustainable growth, while actively financing businesses that offer innovative solutions to global environmental and social challenges. With nearly 20 years of expertise, we have established ourselves as a leader in sustainability and impact within our industry.

The O+ Strategy

In 2020, Eurazeo launched its new ESG strategy called O+, structured around two flagship commitments: achieving carbon net neutrality (O) and fostering a more inclusive society (+). Its ambition: contribute to the emergence of a fairer and more sustainable society. The O+ strategy binds the Group and its portfolio companies, making it a significant driver of transformation.

Science-Based Targets

Since early 2023, Eurazeo is also part of the new Euronext CAC® SBT 1.5° non-financial index, in recognition of its commitment to the SBTi (Science Based Targets initiative). Eurazeo's sharp commitments and its consistent progress in ESG are strongly recognized, as evidenced by its excellent ratings.

We are targeting carbon net neutrality by 2040 at the latest, in line with the methodology adopted by the Science Based Targets Initiative (SBTi). We will strongly encourage businesses in our portfolio to take climate action, too.

Recognition and Ratings

Eurazeo is the only listed investment company that features in 5 major ESG indices compiled by the largest international rating agencies.

The company maintained top rankings in sustainability benchmarks and strengthened its line of impact funds, with the Eurazeo transition infrastructure fund closing 40% above its initial targets.

Impact Funds

Including new impact investments in both dedicated funds and generalist funds, impact assets under management totaled €5.7bn at the end of June 2025 (15% of AUM), compared with €5.1bn at the end of 2024.

The firm has launched several dedicated impact vehicles:

• Eurazeo Planetary Boundaries Fund (EPBF): Impact buyout fund targeting companies with environmental solutions
• Eurazeo Transition Infrastructure Fund: Sustainable infrastructure investments
• Nov Santé Actions Non Cotées: Healthcare-focused impact fund

The EPBF impact fund (Planet Boundaries) secured a first closing at more than €300m, out of a target of €750m (including c. €150m on the Eurazeo balance sheet).

Compensation Alignment

Eurazeo integrates sustainability and impact objectives into compensation schemes to align stakeholder interests with its O+ strategy, fostering long-term value creation. They represent 15% of the annual variable compensation of Executive Board members since 2014, Managing Partners since 2019, and Managing Directors since 2023. They also represent 15% to 20% of the carried interest for investment teams of funds disclosed under Article 9 (SFDR).

---

↑ Back to Top

IX. Current Portfolio & Business Overview

The Platform Today

Eurazeo SE is a leading European investment group with diversified assets under management of EUR 36.1 billion, including EUR 27 billion on behalf of institutional and individual clients through its private equity, private debt, real estate and infrastructure strategies. The group supports over 600 mid-market companies, leveraging the commitment of its 400 employees, its sector expertise, its privileged access to global markets via 13 offices in Europe, Asia and the United States, and its responsible approach to value creation based on growth. Eurazeo's institutional and family shareholding and its solid financial structure ensure its long-term viability. Eurazeo SE has offices in Paris, New York, London, Frankfurt, Berlin, Milan, Madrid, Luxembourg, Shanghai, Seoul, Singapore and Saõ Paulo.

Investment Strategies

Eurazeo now operates across three major asset classes with ten specialized strategies:

Private Equity - Capital (formerly MLBO): Mid-to-large buyouts in market-leading European companies - Elevate (formerly SMBO): Small-mid buyouts, particularly French SMEs - Growth: Late-stage investments in European tech scale-ups - Venture: Early-stage investments in innovative companies - Brands: Consumer and luxury brand investments

Private Debt - Direct lending to mid-market European companies - €2.5 billion raised in 2024, up 86% year-over-year

Real Assets - Real Estate: Operational real estate investments - Infrastructure: Including transition infrastructure focused on energy transition

Wealth Solutions

Wealth Solutions fundraising from private clients totaled €941m (+9% compared to 2023). This activity reported initial successes outside France, particularly in Belgium and the signing of distribution partnerships in Germany, Switzerland and Italy. The EPVE 3 fund surpassed €2.65bn, making it one of the largest private market evergreen fund in Europe. It received the "Best Private Market Product – Mass Affluent" award from IPEM in January 2025. Wealth Solutions activity represented €5bn or 19% of Group third-party AUM.

Eurazeo is strengthening the internationalization of its Wealth portfolio with two new investment vehicles specifically designed for the European market. These two new Evergreen funds specialized by asset class, of which one ELTIF 2.01, will be widely distributed across the continent. Eurazeo Prime Income Credit (EPIC) – for private debt – and Eurazeo Prime Strategic Opportunities (EPSO) – for secondary private equity – are intended for distribution in several European countries, including Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom. EPIC and EPSO, whose commercialization and investment phase will begin shortly, have an initial capital of more than €100 million each, thanks to contributions from Eurazeo and a leading institutional investor. Eurazeo aims to replicate and amplify the commercial success of EPVE 3, its first Evergreen fund.

Recent Results

In 2024, Eurazeo raised funds of €4.3bn from its clients, up 23% on 2023 and surpassing the guidance of around €4bn. The Group recorded exits of €1,070m on its balance sheet in 2024, more than double the 2023 amount (€506m). Including the Albingia exit announced at the year-end that will soon be completed, balance sheet realizations to date amount to around 17% of the portfolio value at the beginning of the year. These main exits generated an average premium of 10% compared to the previous value recorded for these portfolio assets. This confirms the quality of Eurazeo's investments and the relevance of the asset valuation methods.

---

↑ Back to Top

X. The Bull and Bear Cases

The Bull Case: Europe's Emerging Private Markets Champion

Structural Advantages

1. Permanent Capital: Unlike traditional PE funds constrained by fund lifecycles, Eurazeo can hold investments indefinitely, allowing for longer-term value creation

2. Diversified Platform: Multi-strategy capabilities across private equity, private debt, and real assets create multiple growth vectors and reduce concentration risk

3. Wealth Management Optionality: The democratization of private markets is a massive secular trend; Eurazeo's EPVE 3 and new evergreen funds position it to capture retail capital flows

4. ESG Leadership: Among European PE firms, few can match Eurazeo's sustainability credentials, which increasingly matter for institutional allocators

5. Mid-Market Focus: European mid-market remains fragmented with significant consolidation opportunities; Eurazeo's expertise in this segment is hard to replicate

Hamilton Helmer's 7 Powers Analysis

• Scale Economies: Growing AUM creates operating leverage in asset management fees
• Network Effects: Eurazeo's portfolio of 600+ companies creates a flywheel of deal flow, management referrals, and expertise sharing
• Counter-Positioning: As a publicly-listed PE firm, Eurazeo offers permanent capital that traditional funds cannot match
• Switching Costs: Portfolio companies develop deep relationships with Eurazeo's operating partners
• Branding: Strong reputation in European mid-market, particularly in France and French tech ecosystem
• Cornered Resource: The David-Weill/Lazard heritage provides unique access to certain deal flow

The Bear Case: Structural Challenges Persist

The NAV Discount Problem

Kepler Cheuvreux noted that Eurazeo continues to trade at one of the deepest discounts in the listed private-equity universe, approximately 50% versus net asset value (NAV), which the firm considers increasingly justified by slower value creation. The research firm cited a more cautious valuation framework for the private equity company, now valuing its third-party asset-management business at 5.5% of assets under management (approximately EUR1.6 billion) and applying a 45% discount to the balance-sheet portfolio. Kepler Cheuvreux noted that Eurazeo continues to trade at one of the deepest discounts in the listed private-equity universe, approximately 50% versus net asset value (NAV), which the firm considers increasingly justified by slower value creation, lower uplifts on exits, and muted internal rates of return in recent vintages.

Shares in Eurazeo SE last closed at €54.40 and the price had moved by -27.08% over the past 365 days. In terms of relative price strength the Eurazeo SE share price has underperformed the FTSE Global All Cap Index by -32.65% over the past year.

Porter's Five Forces Assessment

1. Competitive Rivalry (High): The European PE market features formidable competitors including EQT, PAI Partners, Ardian, and large US players expanding into Europe

2. Threat of New Entrants (Moderate): High barriers in terms of track record and relationships, but well-capitalized new players continue to emerge

3. Bargaining Power of Suppliers (Deal Flow) (Moderate-High): Quality assets in the mid-market are scarce, driving up competition and prices

4. Bargaining Power of Buyers (LPs) (High): Institutional investors have many alternatives and demand favorable terms

5. Threat of Substitutes (Growing): Direct investing by family offices, corporate M&A, and permanent capital vehicles from competitors

Specific Concerns

1. Growth/Venture Valuation Adjustments: The value of Growth and Venture6 assets was adjusted by -€351m (-17%) during the year. The tech downturn has exposed valuation vulnerabilities.

2. Leadership Transition: The 2023 management change, while handled professionally, disrupted momentum and raised questions about strategic direction.

3. Scale vs. Competitors: While €37 billion in AUM is substantial, it pales next to global giants like Blackstone, KKR, or even European competitors like EQT.

4. Net Loss in 2024: Net Loss: EUR430 million for 2024. While largely driven by fair value adjustments, this raises questions for investors focused on GAAP earnings.

---

↑ Back to Top

XI. The Investment Framework

Understanding the Dual Business Model

Eurazeo operates two interconnected businesses that require different analytical frameworks:

1. Asset Management (Fee-Generating)

This is the higher-quality earnings stream—recurring management fees from third-party capital. Key metrics: - Fee-Paying AUM growth - Management fee revenue - Fee Related Earnings (FRE) and margin - Fundraising momentum

2. Balance Sheet Investing

The firm's own capital invested alongside clients. Key metrics: - NAV per share - Value creation/destruction in portfolio - Realization activity and exit pricing vs. carrying value - Co-investment commitments

The Critical KPIs to Track

For investors monitoring Eurazeo's progress, three metrics stand out as most important:

1. Third-Party Fee-Paying AUM Growth: This measures success in transitioning from balance-sheet investor to fee-generating asset manager. Target: High single-digit to low double-digit annual growth.

2. FRE Margin: Fee Related Earnings as a percentage of management fees measures operating leverage in the asset management business. Current: 35.5%, targeting continued improvement.

3. Asset Rotation Rate: Annual portfolio realizations as a percentage of beginning-of-year portfolio value. Historical average: 20-25% annually. Historically, the Group has sold on average 20%-25% of its portfolio each year.

Myth vs. Reality

Myth	Reality
"Eurazeo is a passive holding company"	It's an active asset manager with operational involvement in 600+ companies
"The NAV discount will close"	Discount has persisted for years; may require sustained exit outperformance
"Listed PE can't compete with traditional funds"	Different advantages—permanent capital enables longer hold periods and different deal types
"French focus limits growth"	Pan-European with 13 offices globally; 60%+ of recent fundraising from outside France

---

↑ Back to Top

XII. Conclusion: The Long View

When Michel David-Weill died in June 2022, Eurazeo lost more than a founding shareholder—it lost a philosophical anchor. Eurazeo has lost its founder, its builder, the man who just days ago continued to share his extraordinary intelligence, inalterable passion, unwavering loyalty and unique angle on the business world, who was recognized for his intellectual curiosity, his long-term perspective and his boldness. Eurazeo's story overlaps with Michel David-Weill's life. From the Company's inception until it became the worldwide investment group it is today, he shared with the Group his lifelong passion for growing businesses, financing innovation and entrepreneurs, and sustainable growth.

The transformation from Gaz et Eaux to Eurazeo encapsulates 144 years of European financial evolution—from industrial utilities to passive holdings to active private equity to diversified asset management. At each inflection point, someone made a decision to adapt rather than preserve.

Patrick Sayer's 2002 pivot to LBO investing created modern Eurazeo. Virginie Morgon's Idinvest acquisition and third-party capital strategy built the multi-strategy platform. The current co-CEO team is now focused on accelerating the asset management transition and proving that listed permanent capital can compete with—and in some ways outperform—traditional fund structures.

The evidence is mixed. On one hand, Eurazeo has delivered exceptional returns on investments like Moncler, built a leading position in French tech, and assembled genuine operational expertise. On the other hand, the persistent NAV discount, recent valuation write-downs, and competitive pressure from larger global platforms pose real challenges.

Since the launch of the strategic plan announced at the Capital Markets Day at the end of 2023, the Group has sold approximately €2.2bn of balance sheet assets, i.e. c. 27% of the portfolio at the end of 2023, with an average uplift of +8% on their most recent valuation, and a gross performance of 2.1x the initial investment. Over the same period, on average, global Private Equity funds distributed c.16% of their portfolio (source: Cambridge).

For investors, Eurazeo presents an unusual opportunity: access to European private markets through a publicly-listed vehicle that trades at a meaningful discount to the underlying assets. Whether that discount represents an inefficiency to exploit or a structural feature to accept depends on one's view of listed private equity's role in a portfolio.

What's certain is that 144 years of continuous evolution suggests this company knows how to adapt. From gas lamps to down jackets to AI-powered scale-ups, Eurazeo has repeatedly reinvented itself. The question is whether the current reinvention—from balance-sheet investor to fee-generating asset manager—will create the next chapter of value.

As Christophe Bavière and William Kadouch-Chassaing build their tenure, they carry the weight of a remarkable legacy and the burden of proving that public markets can fairly value a private markets champion. The transformation continues.

---

The Eurazeo story illustrates a profound truth about European capitalism: patient capital, institutional continuity, and family stewardship can create extraordinary long-term value. But they can also create complexity, governance challenges, and structural constraints that must be actively managed. For sophisticated investors, understanding these tensions—and betting on how they'll resolve—is precisely what makes European private equity compelling.