Assets Under Management
In addition to the Net Asset Value (NAV), Eurazeo will also report on the total volume of assets under management. As of December 31, 2018, assets under management break down and are defined as follows:
- Direct investments of Eurazeo Capital, Eurazeo PME, Eurazeo Patrimoine, Eurazeo Croissance and Eurazeo Brands;
- Eurazeo Development: enhancement of Eurazeo’s third-party management and investments in Rhône, Idinvest and other platforms;
These assets are valued in accordance with the IPEV methodology, which calls for a revaluation after a period of one year.
- Net cash and other items (treasury shares, tax on unrealized capital gains, other assets/liabilities).
As of December 31, 2018, Eurazeo’s Net Asset Value stood at €77.5 per share, up +4.2% compared to December 31, 2017 and +5.7% adjusted for the dividend paid in 2018.
The valuation of assets managed for third parties comprises:
- The fair value of investments managed for third parties by Eurazeo or companies that Eurazeo controls;
- The uncalled capital of funds managed for third parties;
- The share of assets under management managed by strategic partnerships in which Eurazeo holds a minority interest.
Idinvest is integrated for 100% of its assets in line with the company’s full consolidation. The valuation methodology for these assets is identical to that used for the funds managed directly by Eurazeo.
The Rhône assets are taken into account for 30% and the valuation method is also the same as that of the funds managed directly by Eurazeo.
(1) Value as of December 31, 2018
The valuation methodology complies with the recommendations of the International Private Equity Valuation Board (IPEV). The valuation of unlisted investments is mainly based on comparable or transaction multiples. The value adopted for listed companies is the 20-day average of share prices weighted for trading volumes. Unlisted investments are not revalued on a quarterly basis but only as of June 30 and December 31.
The values adopted for unlisted investments are subject to a detailed review by an independent professional appraiser, Sorgem Evaluation. This review supports the values adopted and certifies that the valuation methodology complies with IPEV recommendations.