SENNA

Eurazeo Launches Two Evergreen Funds to Diversify Investment Strategies

Eurazeo, the French investment firm, has launched two new evergreen funds to broaden its investment offerings and cater to a wider range of clients, according to people familiar with the matter.

The first fund, Eurazeo Permanent Capital, will focus on long-term investments in public and private companies, aiming to provide steady returns over an indefinite time horizon. The second fund, Eurazeo Sustainable Investing, will target sustainable and impact-driven opportunities across asset classes.

The launch of these evergreen funds represents a strategic shift for Eurazeo, which has traditionally operated closed-end private equity funds with defined investment periods. Evergreen structures allow for more flexible deployment of capital and can potentially offer investors smoother returns compared to the cyclical nature of traditional private equity.

"Eurazeo is looking to evolve its business model to meet the growing demand for more permanent capital solutions and sustainable investment products," said one of the people, who asked not to be identified discussing private information.

The Eurazeo Permanent Capital fund will invest in a diversified portfolio of publicly traded companies as well as privately held businesses, blending public and private market exposures. This hybrid approach aims to provide investors with a balance of liquidity and long-term compounding returns.

Meanwhile, the Eurazeo Sustainable Investing fund will focus on opportunities that align with environmental, social and governance (ESG) principles, including renewable energy, circular economy, and health and wellness sectors. The fund will invest across public equities, private equity, private debt and real assets.

"There is a clear appetite from investors for investment strategies that can deliver steady returns while also having a positive societal impact," the person said. "Eurazeo is positioning itself to capitalize on these trends."

The launch of the new funds comes as Eurazeo looks to expand its assets under management, which stood at €27 billion as of June 2022. Industry sources suggest the evergreen vehicles could help the firm attract additional capital from institutional investors and high-net-worth individuals seeking more diversified and sustainable investment options.