Eurazeo has welcomed a new member to its Executive Board towards the end of the first quarter of 2021. The group's Board of Directors appointed Christophe Bavière as a member of the Executive Board on the proposal of Virginie Morgan. Approximately one month later, Eurazeo is taking stock of its activity until the end of March 2021 and here are its figures.
22.7 billion in assets under management at the end of March 2021. This represents an increase of 21% over the twelve months of the fiscal year and a 4% increase compared to the level posted on December 31, 2020. The investment company was involved in managing capital for the benefit of partner investors to the tune of €16 billion. A figure increased by 6% compared to the previous quarter and up 27% year-on-year.
The group's permanent capital (net asset value, NAV) over this three-month period reached 6.8 billion euros. As for unlisted assets, they are not subject to quarterly revaluation in accordance with the group's methodology.
85.5 per share after updating the cash position.
Note: Eurazeo displays this total after accounting for any changes caused by disposals or acquisitions.
In the coming quarters, the fundraising policy should continue due to the amounts raised so far this year (1.2 billion euros). In addition, investor clients have a particular interest in the funds currently underway. Also, a fundraising program is being established in advance.
Thus, it is expected to have an increase in fundraising transactions for the period 2021-2022 compared to the record level recorded in 2020. Its overall fundraising peaks at €2.9 million during 2020.
Management fees were up 4% at the end of March ('59 million). They include third-party management activities, which rose by 13% to 41 million euros. 41 million. This activity was positively impacted by the on-boarding effect of the successful fund-raising operations that took place in 2020.
Eurazeo recorded a -13% decline to 18 million euros in management fees recorded in the company's balance sheet. This decline is due to the recent disposals of Europcar and Iberchem.
Since they are closely linked to the disposals, the performance fees paid were largely limited over the period. This fall is explained by the absence of major disposals during the quarter. They fell from 2 million euros a year ago to 1 million euros today.
In terms of targets, Eurazeo is counting on a 35% to 40% increase in the EBIT margin in the medium term (28.7% in 2020), as expected. FRE is used to measure the net recurring revenues of the business and corresponds to net management fees. The Group expects management fees to increase slightly by the end of 2021. However, it expects these to improve from 2022 onwards through the raising of successor funds.