Eurazeo Capital closes fourth fund on €2.5bn target

The firm raised about €700m in third-party capital for Eurazeo Capital IV, with the €1.8bn remainder coming from its balance sheet.

Eurazeo Capital, the mid-market private equity-focused division of French-listed investment firm Eurazeo, has held a final close on its latest fund on its €2.5 billion target.

Eurazeo Capital IV was 25 percent larger than its 2017-vintage, €2 billion predecessor.

The firm launched Fund IV in 2018 and held a first close on around €500 million in January, according to a statement in February.

Approximately €700 million came from investor commitments and the remaining €1.8 billion from Eurazeo’s balance sheet.

Limited partners in the fund include sovereign wealth funds, insurance companies, asset managers and family offices, the firm said in a statement. North America-based LPs made up 51 percent of the fund’s investor base, European LPs accounted for 36 percent and Asian LPs for 13 percent.

Capital raised for Fund IV will be invested in mid-cap companies in North America and Europe with enterprise values of more than €200 million. The firm has already made five investments from Fund IV, it said in the statement.

The firm is also in market with its third growth fund and expects to launch two vehicles focused on senior debt and mezzanine/unitranche, as previously reported by PEI.

The firm had €17.7 billion in assets under management, as of end-June 2019 of which €6.1 billion is balance sheet capital and the €11.6 billion remainder in investor commitments. Eurazeo invests in private equity, private debt, real estate and venture capital.

Its key priorities for the year include expanding the firm’s international scope, using its balance sheet to accelerate existing investment strategies and developing its portfolio companies, the firm said in 2018 results presentation in March.