Eurazeo, in line with its management and real estate investment operations specifically within ANF, teamed up with Colony to create Colyzeo, a European fund administrated and managed on a daily basis by Colony.

Colyzeo focuses on investments in Western Europe, with a predominant real estate component. In practice, these transactions may consist of acquiring real estate assets or investing in development projects and companies with underlying real estate assets.

The total investment capacity of Colyzeo combined to that of Colony’s global funds is estimated, excluding leverage affect, at 344 million euros for Colyzeo I and 2 billion euros for Colyzeo II.

Colyzeo I raised 229 million euros and was closed in July 2004. The bulk of this capital was invested in nine companies, including Accor, Buffalo Grill and Lucien Barrière.

Eurazeo invested a total amount of 130 million euros in Colyzeo I and a joint investment in Accor. 115 million euros were called for this commitment which generated 144 million euros of actual carried interests as of December 31, 2008 derived primarily from investments in Buffalo Grill and Accor.

As of December 31, 2008, the residual portfolio comprised five investments – of which Lucien Barrière and a portfolio of buildings in Germany – whose total value stood at 25 million euros for Eurazeo. Eurazeo’s residual commitment is estimated at 11 million euros.

Colyzeo II raised 1 billion euros and was closed in January 2008. Colyzeo II has already called nearly three-quarters of its capital for six investments with the principal ones being Carrefour and Accor. As of December 31 2008, the fund’s residual capacity was estimated at nearly 350 million euros (including contractual reserve).

Eurazeo committed 150 million euros to Colyzeo II and has so far paid 111 million euros, its residual commitment is estimated at 39 million euros.

As at December 31, 2008, the value of Eurazeo’s investment was estimated at 41 million euros. In accordance with IFRS, Eurazeo recognized impairment of 53 million euros. This drop in value reflects the current state of the financial markets, as the fund is primarily exposed to listed securities. However, Colyzeo II has a considerable residual financing capacity and an outstanding life of seven to nine years.