Eurazeo SE

In H1 2026, total AUM rose 9% to above EUR 40 billion, third-party AUM grew 13%, fee-paying AUM increased 6% to EUR 29.4 billion, management fees reached EUR 213 million (+6%), third-party management fees rose 14%, fee-related earnings were up 11%, EBITDA increased 20% to EUR 100 million, and operating free cash flow from asset management was EUR 54 million (+75%). The investment company posted slight positive value creation of 0.3%, or plus EUR 20 million, and the portfolio value per share rose 3.3% to EUR 105.4 per share. Christophe Baviere said Eurazeo raised EUR 2.3 billion from clients in H1, deployed EUR 1.9 billion, and realized EUR 700 million; William Kadouch-Chassaing said the group has already returned EUR 1.3 billion since the beginning of 2024, including EUR 600 million in ordinary dividends and EUR 700 million in share buybacks. Management reiterated the plan to deliver EUR 2.3 billion in shareholder returns by end-2027, continue increasing the ordinary dividend, and buy back another 11% of its own shares by the end of 2027, with potential extraordinary dividends to close any euro shortfall depending on buyback execution price.

William Kadouch-Chassaing framed the half as evidence that Eurazeo is executing its strategic plan: growing third-party asset management, shrinking the balance-sheet share of the business, and returning capital to shareholders. He stressed that value creation is returning gradually rather than sharply, and that the firm is not betting on higher multiples but on earnings growth. His tone was confident but cautious, repeatedly emphasizing discipline, a mixed macro backdrop, and the importance of ongoing execution rather than near-term market rebound.

William said third-party management fees rose 14% and noted a stable private market fee rate of 120 basis points, while balance-sheet management fees fell 14% because Eurazeo is voluntarily limiting new commitments and executing its exit plan. He highlighted that the balance-sheet share of total AUM has fallen from 31% at end-2023 to 22% in H1 2026, and its share of management fees has declined from about 31% to 23%. He also pointed to cost discipline, with OpEx up only 3%, and said financing costs at iM Global Partner were down significantly, helped by lower indebtedness. On capital allocation, he reiterated that Eurazeo intends to maintain moderate gearing rather than target zero net debt, and said the extra dividend decision would depend on the average share price achieved under the buyback program.

Analysts pressed on whether an extraordinary dividend could fill the gap if share buybacks fall short of the EUR 1.5 billion implied by the CMD, and management said any shortfall in euro amount would be compensated by dividends, with a decision likely not before H2 2027. Questions also focused on the muted H1 exit pace; management said exits are lumpy and the H2 pipeline is healthy, with tools such as dividend recaps and continuation vehicles available to help reach the annual rotation target of 15% to 20% of prior-year NAV. On value creation, management said the portfolio has already absorbed major markdowns and multiple compression, and future improvement should be gradual and driven mainly by earnings rather than multiple expansion. On private equity fundraising, management said the weaker H1 reflected product-mix timing, not underlying demand, with PME V now having completed its first close and expected to accelerate.