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Eurazeo closes €500m co-investment fund

The listed Paris-based private equity group has wrapped up €500m in commitments for its first vehicle for third-party investors.

French buyout firm Eurazeo has revealed the final closing of Eurazeo Co-Investment Partners (ECIP) at its target level of €500 million ($666 million).

The firm revealed the final close of the fund, which achieved a first close on €345 million in July last year, as it reported its annual results.

ECIP will invest alongside Eurazeo in every new deal the company does on a pro rata basis, committing €20 for every €100 Eurazeo invests. It enables Eurazeo to increase its investment capacity and streamline the equity syndication process. The firm also hopes it will increase recurring revenues.

Leading investors in the fund include prominent French and international banks and insurance companies.

Highlights of Eurazeo’s results include recurrent income up 36 percent at €302.5 million versus €222.8 million in 2005. Its share price increased 37.5 percent during the period, compared with 17.5 percent growth in the French CAC 40 index. The firm is proposing a €1.10 dividend payment, representing a distribution of €56.4 million compared with €46.8 million for 2005, up 16.1 percent.

The reporting period saw Eurazeo invest more than €1.3 billion, the highest annual amount the firm has ever committed. Deals included the €3.1 billion buyout of French car rental outfit Europcar and the €885 million purchase of German parking services firm Apcoa from Investcorp. The firm also completed its first investment in Italy following a link-up with Banca Leonardo.

The period also saw Eurazeo divest its non-core interests in venture capital and real estate funds for $214 million to US insurer AIG as well as its last remaining assets in Asia.