The past six months for Paris-based Eurazeo have been marked by realisations and a resurgence in deal activity.
The listed firm generated €853 million in exit proceeds in the six months to July 2013, representing 23 percent of its total portfolio, according to its results. The exits included prepaid credit card company Edenred, engineering group Flexitalic and shares of energy efficiency business Rexel. Together, they generated a 2.1x return on investment for the firm.
The six-month period was also characterised by renewed deal activity, with the firm completing four acquisitions – worth a combined €100 million; last year, it did just one deal for the whole of 2012.
The recent investments included electric vehicle chargers maker IES, care home business Ideal Residences, healthcare equipment manufacturer Peters Surgical and IT services provider Cap Vert Finance.
Eurazeo posted net income of €329 million for the period, up from a net loss of €198 million for all of 2012. NAV per share also performed strongly, jumping from €56.14 to €58, or 7.2 percent, between 1 January and 30 June.
The firm also benefitted from rebounding performance at the portfolio company level between April and June, according to Philippe Audouin.
“There was a positive inflection in the second quarter,” Audouin told Private Equity International. “In the first quarter we posted 0.9 percent decrease in [aggregated revenues]. In the second quarter, we’re up 1.2 percent.”
That was also true in terms of profits, with portfolio companies such as textile company Elis and rental car business Europcar posting increases in earnings before interest, tax, depreciation and amortisation during the first six month of the year.
Eurazeo will continue to target a steady stream of realisations over the coming 18 months, Audouin added.
Media reports have suggested Eurazeo is likely to float Italian luxury ski jacket maker Moncler later this year, and that the firm is also seeking to sell parking operator Apcoa. Audouin declined to comment on these reports.