Eurazeo Paris Ord

Good morning. Good morning, everyone. It is my pleasure with Philippe Audouin to welcome you all to Eurazeo's 2020 full year results. Remember, remember it was almost exactly a year ago that we met, physically, just as we were all going into lockdown. What a year it's been. An exceptional year for everyone. A very difficult year for many. Quite a remarkable year for us, Eurazeo. The most amazing thing for me has been to see how our teams and our companies have stepped up to the challenge. It's been a real source of pride to see how mobilized they've all been, how our team rallied together. And our companies have been fantastic as they seized the opportunities to transform the way they work, accelerating their digitalization, proving again how privileged we are to be their partners. All of this has paid off. Our NAV net asset value at 85.4 euro per share is at an all-time high. We raised more funds from third parties than ever before to reach 22 billion euro in assets under management. So as you'll see over the next half hour, 2020 has really confirmed that we are on the right trajectory to meet all our targets. And this gives us confidence for the future. So let's start. Last year, we accelerated our strategy on every front, developing assets management, keeping ESG at the very heart of everything we do, and focusing intently on the most promising sectors, especially tech and healthcare. Let me take those three points in order. First, we have developed predictable recurring revenues and scale from asset management. Our AUM have tripled in the last three years. Second, our decision to put ESG at the heart of our strategy is proving decisive today. Our new O-plus program launched last September is the most ambitious ESG program, reducing the risk in our business and positioning us to create significant value for our stakeholders. And third, in our investment choices, we have successfully anticipated long-term trends and thus positioned Eurasio as ultra-relevant in the current environment. Tech and healthcare now represent 60% of our private equity AUM, and the rest of the portfolio has also been steered into growing segments like consumer premium product or financial and business services. What our successes last year showed is one very important thing. The right choices pay off over time. As you know, over the last few years, we've been concentrating a lot of our firepower on building up our strengths in certain sectors, notably tech, digital and health. And look at the numbers now. In only three years, we've multiplied by 15 our digital assets and by five the health-related assets in our AUM, while AUM itself grew threefold from five to 15 billion. That very strong grounding in digital and health meant that we were exceptionally well positioned when the pandemic hit. Looking forward, we know that this focus will continue to be the right strategy as we prepare to navigate the post-COVID world. Our key figures for 2020 are a real endorsement of the medium-term trajectory we laid out during our latest Capital Market Day. 2020, assets under management grew another 16% organically to €21.8 billion, with a record €2.9 billion in new funds raised over the course of the year. Our recurring revenues grew by 13, and our fee-related earnings margin improved again thanks to our operating leverage. We also created substantial value for our shareholders in the second half. Our NAV rose more than 20% and was up overall 6.3% over the full year. Finally, we continue to have a healthy asset rotation, both in acquisition and exits, with a very strong rebound in activity during the second half. Our growth rate has been strong because our foundations are stronger than ever. With 300 people in 10 offices around the world, we now operate through dedicated investment teams, each focused on their markets. Representing about 73% of our AUM, we are one of the most prominent private equity investment managers in Europe and one of the few to operate across the full spectrum from venture to upper mid-cap. Our expertise in private debt is well recognized with a solid positioning in the profitable small mid-cap space. And we have been seeding our activities in real assets for a few years now. The team has created an outstanding track record with some very successful exits, as you saw. As I said earlier, 2020 was a remarkable year of growth for Eurazeo. We are on track to double our assets under management within five to seven years, depending on market conditions and cycles. In 2020, our AUM continued to grow organically at a brisk pace, with another year of 16% growth, just like last year. What's more, we think this trend will continue because of the positive market outlook, our strong fundraising ability and momentum, and the scaling of our investment division. That makes us very confident. The growth of our AUM has been supported by record fundraising, 2.9 billion, I said, in 2020. This is up 19%. This is all third-party money, and it's a real and very tangible endorsement of our strategy from our investment partner. We thank them for that. All the Eurazeo funds currently being raised contributed to this excellent momentum. So what did we do in 2020? The capital raised in venture and growth exceeded 700 million in 2020, almost three times more than in 2019, thanks to the successful launch of Eurazeo Growth 3. Eurazeo has been chosen by the French insurers to manage a half a billion fund as the go-to investor in French healthcare, a role we already play in French tech, as you know. The Eurazeo China Acceleration Fund, in partnership with CIC, Chinese Investment Corporation, and BNP Paribas, raised a first range of 200 million euros. Finally, private funds continue to grow 75% increase in the amount that we raised in 2020. These are just a few examples of our strong momentum. And it's only the beginning because for 2021-2022, we will be raising our sights even higher with several ambitious flagship funds and many bespoke funds on the road. So as you see, we have the right strategies, the right products, and a very powerful organization strengthened by the acquisition of the remaining 30% of ID Invest. We are all set to deliver as we move forward. So how have we achieved this? Most importantly, we've made some clear choices in key sectors over the last years, like financial services, consumer premium, asset management, insurance, and of course, tech and healthcare. Today, we are one of the leading tech investors in France and in Europe. This track record explains the success of our current fundraising in this segment, with Eurasio Gross Fund No. 3 on track to reach its target by the end of the first half of €1 billion, hopefully even more. It's a similar story in healthcare, with skills and know-how built across several segments of the market, from biotech to larger, more established companies, and a great track record. So let me remind you, it's been 1.2 billion euros invested over the last decades, a bit more, 12-15 years, in more than 70 companies with great returns, just in healthcare. This all means... that we are now the right player in Europe to invest in the right sectors in the years to come. So on the next slide, Another long-term factor that has been very central to our strategy is ESG. And you know that because we've been pioneers here ever since our first ESG report 20 years ago. And we are still acting as pioneers today thanks to OPLOS, our ambitious science-based new plan. Above all, we are different. This is because ESG for us is not a matter of setting up an isolated impact fund alongside our more traditional strategies. It's exactly the opposite. At Eurasio, we have put ESG at the very heart of everything we do, both in terms of our investment targets and in terms of our investment processes. Our leadership in this has been recognized by specialists in the ESG world, and I'm very proud of this. In 2020, we received the highest honor, A+, in all the relevant categories for UN PRI. And we are the only private market listed company included in the top five ESG index families. Now we are aiming even higher. I'm proud to say that Oplus has no equivalent in our industry in two of its key components. Fighting climate change through achieving net zero emission by 2040 with a science-based target approach that we are the only one in the financial industry to have embraced. And second, promoting a more inclusive economy, which benefits all our stakeholders. If fundraising is our fuel and ESG our roadmap, the deal activity has been our engine, and that has been racing ahead, especially in the second half. In private equity, our focus on tech and growth continues. So 50% of our new investment in 2020 were focused on tech or tech-enabled companies. They ranged across the spectrum from venture companies through growth to buyouts, and they drew on our know-how, especially on payments and SaaS software as a service businesses. You can see this on the slide. In debt, we recorded very strong deal activity in H2, building a high-quality portfolio. This fast pace of deployment means that we should see an acceleration of the next fundraising cycle for private debt. And in real assets, we seized some value opportunities aiming high, notably in France and in the UK. We've seen some good asset rotation, very successful exits last year. On the next slide, representing a billion four of exits in 2020. But as you can see here, the performance has been extremely good with top-notch IR between 20% and 70%. annual IR returns on those exits. This means that we are fully in line with our exit plan announced during our capital market day in November and further evidence the quality and the maturity of our portfolio in each of our division. This momentum is set to continue in 2021 with an ambitious exit plan for several of the group's assets. Let me take two examples of recent exits. Iberchem for Eurazeo Capital, the upper mid-cap, and C2Z for Eurazeo Real Assets. As you can see, the value creation here mainly came from our ability to transform and accelerate our companies. We are a value-add partner, attracting the best entrepreneurs by helping them go from good to great, bringing more capabilities, operating resources, networks and a global footprint across four continents. TechIberchem, an investment of only three years. It was mainly through strong execution, delivering organic growth in emerging markets, and of course, you know, selling at the right time to a strategic buyer that we made the returns that you can see here. With C2S, we built a fantastic platform of clinics in France. On top of the organic growth that we had, the team added enormous value through acquisition and turnaround and significant investment in equipment in those clinics. So enormous work on the operation, which led to an exit to a strategic buyer with very strong return. In both cases, it was basically a case of making the right investment choices for good assets at inception, picking up the pace for transformation and growth. This is essential. And finally, taking advantage of market momentum to make the strategic decision to exit. I'll now hand over to Philippe, who is going to take you through our financial for 2020.

Thank you, Virginie. Good morning, ladies and gentlemen. Let me first summarize the highlights of 2020. Eurasio's performance was very robust in 2020 in an extremely challenging environment. Our asset management activity continues to thrive, bringing more power and more recurring revenues for the group. The investment activity benefited from the sharp rebound in H2. Our portfolio companies proved to be very resilient, excluding the travel and leisure sector, with our tech companies performing particularly well. These elements resulted in a significant growth of our net asset value in H2 and for the full year 2020. And finally, our balance sheet remains very robust. Let's start first with asset management, which pursued its rapid expansion in 2020. Thanks to our all-time high fundraising levels over the last two years, management fees grew 13% to reach €234 million in 2020. As we announced during our Capital Market Day last November, the profitability on fee-related earnings is rising thanks to our improved operating leverage, which is up 4 points over the last four years. We expect this trend to continue and that our FRE margin will eventually reach a benchmark level of 35 to 40%. However, please bear in mind that this margin improvement will be primarily driven by fundraising cycles and thus will not be linear. Annual performance fees were mainly driven by the accelerated exits in H2 amounting to 48 million euros. Significant performance fees should kick in in the near future thanks to our important exit pipelines for 2021 and 2022. The value of our asset management activity now stands at 1.4 billion euros. This figure results primarily from a healthy 23% value creation in 2020, driven by, on one hand, the substantial increase in AUM and FRE we just talked about, And on the other hand, the revaluation of our stake in the platform IM Global, in line with the partial sale we announced a few weeks ago, which valued our 72% stake in IM Global at €250 million. The value of our asset management activity also reflects the acquisition of the remaining 30% stake in ID Invest, which is now fully integrated. The investment activity enjoyed a sharp rebound in H2, with a contribution of plus 580 million euros. This was due to the successful exit Virginie highlighted earlier, notably Iberchem and Farfetch, as well as a change in fair value of our tech growth companies. H2 also saw a reversal of some negative impact recording in H1 following the successful agreement on world strides debt restructuring. As a result, our investment activity delivered a positive result, a positive contribution of €191 million in 2020, up from €100 million the previous year. Taking a closer look at our portfolio, you'll see a very good performance in 2020 against a challenging environment. Last year, we split our companies into four groups, ranking them from those least impacted by the pandemic, Category 1, 2 and 3, all together representing 90% of our total net asset value, to the most severely hit, Category 4. Our tech growth companies, which are mostly digital native, performed particularly well in 2020. On average, their revenues grew plus 45%, with some companies even recording triple-digit increases. The other companies in the first three categories saw their economic EBITDA increase overall by plus 5% in 2020 and even rising plus 8% in H2O. We achieve this thanks to the strengths of the company themselves, but also thanks to the hard work and commitment of both the company's management teams and Euraseo's teams. The fourth category, more exposed to travel and leisure, saw revenue drop, hitting their EBITDA. Despite this, the cash situation in the remaining assets in this category is adequate at the moment, and we consider there is a real potential for a rebound when the health situation improves. On the next slide, an important point that I'd like to make here is that the top three categories, those least exposed to the pandemic, represent about 90% of our total net asset value and deliver the combined 30% increase in net asset value over the year. Concerning our valuation methodology, we have remained consistent and have applied the IPEF guidelines. For the gross tech companies, when applicable, we have aligned the valuations based on the last financing round. For the other companies from Category 1 to 3, as recommended by the IPEF guidelines, we have applied multiples on recurring earnings in most cases. Part of the value creation also stems from the exit we made at the end of 2020, Farfetch, Iberchem and C2S. These three exits have been done at higher valuation than what we had in our last published NAV and brought an additional €4.6 per share of value, or one third of the total value creation we recorded in H2. On top of that, We've been very conservative in our valuation for Category 4 assets, which we cut by more than 50%. Europecar has been fully written down, and we sold the entire remaining stake in Europecar a month ago. For Wall Street, we have fully returned on our initial investment of €215 million and only kept in our net asset value the €41 million additional investment we made last summer. CREP and Planet have also been cautiously valued. As always, these valuations have been reviewed by our auditors, PwC and Mazars, for the process, and by two independent appraisal firms, Sorgem and Duff & Phelps, for the value itself. All these figures leave significant upside potential for the future. Looking at our portfolio from a different angle, I'd like to highlight that all of our business units across the board grew significantly in value in 2020. Tegros was an abuse winner in the pandemic. Driven by the global shift to digital, it delivered the most outstanding performance this year with a plus 37% increase in net asset value, following an already strong plus 30% in 2019. Real Assets saw a strong uplift of 26%, notably thanks to the sale of C2S at the end of the year, which boosted its ANAV. The other divisions also turned in very good performance, especially in H2. Looking at the overall P&L, our net result is down at minus 160 million euros for the full year. But after our publication of minus 390 million euros in H1, H2 was very strong, showing a positive plus 230 million euros net profit. I'd like to point out that without Europecar and Wallstreet, our annual net result would have been positive at plus €217 million, more than two times our 2019 result. This reflects how well the rest of the portfolio has held up through the COVID-19 pandemic. On a more global view, net asset value, Eurazeo's key indicator, increased significantly last year, driven by a plus 21% surge in H2, resulting in a plus 6.3% gain for the full year. As Virginie highlighted, this results in a new all-time high of 85.4 Eurazeo per share. Our NAV may be at a new high, but we are nonetheless remaining cautious in calculating such a figure. As you know, our valuation methodology has always been conservative. And so exits tend to crystallize hidden value in our net asset value. On average, exits have resulted in an uplift of around 32% to the previously posted NAV over the last five years. This held true in 2020. As I said earlier, the four successful exits added 4.6 euros per share to the last published NAV. These exits at the end of 2020 are just the first steps of the ambitious exit program we announced at our Capital Market Day last November. This exit path will support value creation for the coming two years. As you can see, there are a number of profoundly positive factors driving our long-term outlook. The steady increase in net asset value, the growing share of our recurring revenues, and the prospect for our current exit program. Despite this, the pandemic has caused our share price discount to NAV to widen again at last for the moment. Based on yesterday's share price, the discount to NAV was 29%. That's a sharp diversion from the favourable long-term trend, which has seen its steadily decline on the three-year average from 31% in 2011 to 12% in 2019. What is important to note here is that the factors driving these long-term trends of discount reduction remain as relevant as ever for Euraseo. A more diversified portfolio geared toward high-growth companies, a very consistent track record, and fast-growing recurring revenues from the asset management activity. And we can notice that in 2020, our third-party revenues already covered close to 90% of our OPEX. Turning now to our balance sheet. In the current volatile context, we have maintained a very solid financial position, which gives us significant headroom going forward. Our current net cash position stands at €345 million at the beginning of March and our €1.5 revolving credit facility is fully undrawn and therefore fully available. On top of that, we expect in the coming months about €360 million of cash, notably from the sale of C2S and the stake in IM Global. These two operations have both been signed but not yet closed. Note that in line with our ESG commitment, our revolving credit facility was the first financing in Europe to include ESG close, and more recently, we also secured the first Unitranche ESG LBO financing. On top of this financial capacity, We have also the benefit of 4 billion euros in dry powder, our hand-drawn commitment from our limited partners, allowing us to seize investment opportunities. To finish, a word on dividends. Euraseo has always distributed dividends to its shareholders, with a distribution rising an average 7% per year from 2003 to 2018. Last year, as you know, following the French government's recommendation, we suspended the payout. However, this year, it is our intention to resume distribution, and we will propose a dividend of the same amount as was proposed last year, 1.5 euros per share, a 20% increase over the last dividend paid. Finally, all this has materialized into a strong year for Eurazeo, and this coming year is going to be also exciting. Thank you for your attention, and I will now hand back to Virginie.

Thank you, Philippe. Exciting ahead of us is predicting Philippe. 2020 has confirmed with success, despite very volatile and complex environment, our ability to reach our ambition and follow on our trajectory. We demonstrated the resilience and the strength of the portfolio in a year of intense crisis. We confirmed our ability to raise funds year after year. We created value through successful exits. and we invested in the right sectors to create value for the years to come. We're exactly where we wanted to be when we launched our diversification strategy several years ago, and now all the lights are green for further growth. So now what's next? What are we looking at? Our intention is to roll out high-potential investment strategies, and I'll name a few, just a few examples, but where we're really concentrating our energy. The green economy, all sizes and shapes, including sustainable infrastructure, smart cities, and decarbonization. We already have three funds on the road and a dedicated team for that. Tech and healthcare will continue to be a very important focus for us as we've built it over the last 10 years and will continue to work on building the future European champions in those sectors. And we will continue to leverage, accelerate even, our European fertile landscape of SMEs, identifying and building tomorrow's leaders with real international potential. That's what we like to do. That's what we've proven to be able to do as well. On all these fronts, we have a head start with the expertise and the maturity required to really make the difference. We have a strong fundraising program for the next two years. We've explained this in detail at the last Capital Market Day. But for some of the main highlights, this includes the tale of existing programs in gross debt and private funds. Then successor funds in lower mid-cap and upper mid-cap investment strategy. and the first third-party funds in real estate, brands, and our newly formed sustainable infrastructure team. Our strategic plan on fundraising is now to extend our leadership in France, expand in Europe, build a franchise in the U.S., and sign key partnerships in Asia. What's more, the accelerated acquisition of the remaining 30% of ID Invest this year has really allowed us to simplify and strengthen the organization, meaning that we can now invest ahead of the curve as one team. The beginning of the year is very promising. During the first three months, and in some cases just the first two months, we delivered on all aspects of our 2021 roadmap. We are accelerating our disposal plan, I think you know you get that, with nearly a billion euros already sold, notably in growth, venture and real assets at the beginning of the year. we will continue the fundraising momentum. At the end of February, early March, it's been 600 million raised year-to-date in two months. And we will continue to build scalable expertise thanks to the success of our past investments and the reputation of our teams. So we were strong during the crisis. We have... We believe everything it takes to be even stronger with strong tailwinds in the future. Our anticipated trajectory of doubling AUM over five to seven years is confirmed. Fundraising has already accelerated in 2020, and there's more to come. good start of the year for 2021. We have a high-quality portfolio, which means you should soon expect to see some significant exits that will crystallize value and accelerate our asset rotation. We're going for growth like this because we have one overriding objective. We aim to create value for our shareholders through the combination of growing recurring long-term revenue streams stronger capital gain linked to bigger, better, and more international deal flow, and a dynamic distribution policy with the firm intention to raise the dividend in the next years and increase shareholder remuneration. Thank you for your careful listening. And now is Philippe very much open to your question. Thank you.

If you would like to ask a question on today's call, please press star one on your telephone keypad. To retry your question, please press star two. You can also submit your questions on the web by clicking the Ask a Question button. You'll be advised when to ask your question. Again, it is star one on your telephone keypad. The first question is coming from the line of Christoph Berlisch from Bremer. Christoph, you're on the camera now. Go ahead.

Yeah, good morning. Thank you very much for your presentation. Two questions from myself. The first one was to go to the E-Invest transaction where you bought the remaining shares. So could you give us an idea how much this has added to your NAV and as a management and how this compares to the price you paid for that transaction? And then the second question with regard to your sale capital. So when we look at the most impacted assets from the crisis, Wells Fargo and Planet, you have taken very significant markdowns for these assets in the first half of the year. So how do the valuations of these assets in December compare to the value in June? Have you already implemented some recovery there in the valuation, or do they still remain at the end of June value? Thank you.

Maybe I start with your last question. And so, as Philippe explained, on Worldstride, we wrote down both in our accounts and our net asset value, the full investment that we made initially, a bit more than 200 million, as you saw, 215 in terms of investment. And we kept... both account and net asset value, a remaining value for our stake in Worldstride of €41 million for our stake on the balance sheet. We're certainly... You know, hoping that with the very, you know, major vaccination program in the U.S., notably, which is certainly, you know, fast pace in the U.S., where 20 percent already of the population is vaccinated. We are hoping that the 2021 season, which really starts in June, end of May, June, July for WorldSride, will show some rebound in terms of activity and revenues. And what we already see is very positive what we call intake, so basically reservation, booking. for 2022 already. What we call 2022 is July 2021 to June 2022, because, you know, the fiscal year of World Stride end at the end of June. So, we see some, you know, promising sign of activity for World Stride. That's to your first question on World Stride. The other one on planets, It's about, you know, variation during the year. So we took it down significantly at the end of June. We're slightly up at the end of December, but we're still significantly down compared to 1st of January. So down first half significantly. up at the end of December, but still significant markdown in the net asset value, not in the account, because the value of Planet at inception that we have in our account do not justify, necessitate an impairment in our accounts because the entry price or cost is much lower than the value that we have even after markdown of COVID. Maybe Philippe on the first question?

Yeah, thank you. Let me just add to what you just said, that as we said earlier, we really think that these two valuations are very conservative and that future exit, not yet, but future exit should enable to unlock more value from these two assets.

Maybe, sorry, I forgot something on planets, which is very important. You remember when we bought Plan A, it was essentially a de-tax operator. So, of course, had we not done all the diversification that we did by buying planets in the U.S. that take private that we did at the end of 2017, early 2018, to buy Planet Payment, which is way more of a payment company then a de-tax company, and then subsequently buying 3C at the end of the summer 2020, so basically this year, which is another very strong payment operator in Europe. Of course, the performance of Planets would be quite different today. So what we brought to the company in terms of vision of de-risking from travel and going really massively into payment, which we have a lot of trust into, has made also the performance of Planets very different than what it would have been.

Concerning your question relating to ID Invest acquisition, we invested about €180 million for the remaining 30% stake in ID Invest. And, of course, that has added to the total value of our asset management activity. Maybe we should link. There are some written questions from people, and particularly Geoffroy Michelet from Odo, because some of the questions relate to what we just said. So, Geoffroy, I will read your question. First question, on valuation of your NAV, especially in tech and health, would you say that the multiples have increased, or is it mostly the EBITDA above budget, and business plan that have been raised. On this question, I mean, we can make the link. We said that the tech sector in value grew by 37%, but the revenues grew by close to 50%. And most of these companies are based on multiple of revenues. So I think that the multiple not only have not increased, but to a certain extent might be slightly lower if I take these two figures. Your second question, why didn't you propose a superior dividend since you had a great year but kept 1.5 euro, the same level as you would have distributed last year without COVID? Maybe I will leave this question to Virginie and I will take the last one, which is on the third-party asset management valuation. Could you give us the bridge by factor to reach 1.4 billion from 2019? So that's quite simple. So the breach in value up to 1.4 billion, a small 200 million is a perimeter effect following the acquisition of the remaining 30% stake in ID Invest. Of course, that is not taken into account when I mentioned a 23% increase in valuation. What's in the 23% increase in valuation? Well, that's quite simple. The FRE, which is the base for valuing that kind of activities, grew by close to 20%. IM Global, which we know present in a separate position, grew also by 20%. just following the value at which we sold a minority stake at the beginning of this year. So it's fully consistent. And you could add to that, of course, some synergies following the acquisition of the remaining stake in ID Invest. which has enabled us to build, for instance, a strong integrated fundraising team, which will enable us to address geographies where we had a strong potential to reinforce our presence, like, for instance, North America.

On the dividend, there's a few things I'd like to share. I mean, the first is, and of course you will not forget that, it's been a first in last year that we didn't pay a dividend. Every year since you've been following us and over the last 15, 20 years, we've been paying a dividend. So quite a first in the environment that you know. So what we thought is that we would confirm that dividend that we had announced like a year ago, you know, day by day a year ago. And more importantly, I think it's about our intention. We firmly intend because we have more recurring and predictable revenues and because we hopefully – We'll see great share price appreciation in the years to come. We will be trying to maintain or even increase the yields that we have compared to our European peers. Today, we think our yield is around 2.3%, 2.4%. on sort of yesterday's share price. Let's see where that takes us in the next six months. Hopefully, the yield will decrease because share price will appreciate. But we are quite well in our benchmark of European Alternative Asset Manager or even some of the U.S., But we do intend, and we will do it progressively but intently, to increase our dividend in the year to come. So that's a longer question to your specific question about why not do it like right now. It was already, of course, a big increase, 20% increase. So that's what we are confirming for this year.

Now, we have a question also of David Serdan. Hello, David. First question, how much has been exited year-to-date and how much could you achieve over 2021? And your second question regarding exit, have you delivered better value than what is booked into your NAV? I start with a second question. The exit that either have been done or are in the process to be done, mostly from the balance sheet, the minority stake in IM Global or C2S, which is not fully finalized yet, signed but not closed, as these two operations were either signed already or in the making at the end of last year, we took the value of these two operations in our NAV as we published it. How much could we achieve over 2021? We cannot give you a clear figure right now, and you know that it's not our use to do it. But again, I think we can confirm that 2021 and 2022 should be to say the least, close to the strongest year we have had in the past.

Maybe as a complement, on the billion euro of exits that I mentioned in my conclusion that we have realized, or I mean realized, doesn't mean closed, but signed during the first two, two months and a half, there's part of that amount which Philippe referred to, which is about 650 million euros, C2S, and IM Global and the secondary cell of our growth portfolio. And there's about 400 million of disposal, which will positively impact our funds, notably in venture and growth, with significant exit either through IPOs or strategic sell, which were announced over the last year. 10 days with very much significant value appreciation compared to what we had in our fund valuation. But they do not all relate to the balance sheet. So it's a billion of disposal compared to the billion four that we realized in 2020. balance sheets plus funds. And for the sort of forecast, we never really give any forecast, but it's going to be a significant year of exit. When you look at us historically, it's sort of an average, but it gives a reference or a measure. On average, we've been selling over the 14, 15% of our NAV that we recently published, so let's say December, how much did we sell during the following year? 14, 15%. You might expect here a bigger year of exit relative to NAV.

So maybe we can take a question from the line now. Yeah.

The next question in the queue is coming from the line of Murad Lamidi from Exxon B&B Paribas. Murad, you're unmuted. I'm going to go ahead.

Yes, good morning, Virginie. Good morning, Philippe. And congratulations for these good results. I have one question on your asset management business. We've seen a sharp re-rating of alternative asset manager in the past six months. Multiples have expanded significantly. So I was wondering whether you are using the same multiples as last year when you are valuing the asset management business. So this is the first part of the question. And the second part is, do you integrate the performance fees in the valuation, or do you neutralize them since they are mostly coming from the bank? Thank you.

So on your first question regarding the multiple, as I said earlier, Murad, the FRE grew by roughly 20 percent and the value of our asset management business grew by 23 percent. So I think it answers the question. We are more or less in line. You know that we tend to remain cautious in our valuation. You are perfectly right when you say that on the market multiples have increased, but we are looking over the very long term for that kind of asset. So we have remained very cautious in our valuation. And in terms of performance fees, we take into account third-party performance fees in the valuation, but, of course, based on a totally different multiple than FREs, but not so far the internal performance fees.

Okay, great. Thank you.

Thank you, Paul. And thank you for your encouragement on these here results. We appreciate it. Should we take the one that we have here, so online? Okay, so Alexandre Gérard. Bonjour, Alexandre. Hi. So will you keep on looking at opportunities like Aviva France in order to be more integrated, or was it just a one-off opportunity? So maybe I'll start. What we will be looking and aggressively pursuing is to increase the contribution in our inflow of funds from retail. You have the high net worth individual. You have what we call the mass affluence. And then you have retail. I mean, these are the so very well sort of known and used wording to describe different type of retail investments. Today, there's some detail in our press release. We have about 10% of our AUM, which comes from retail. We have amazing partnership with either insurance companies or banks that trust that Eurazo products are to be trusted and are being deployed and offered to their own client base. But it's only 10%. It's also been 10% of our fundraising, again, in 2020. So, out of the €2.9 billion that we raised, about 10% comes from retail. So, what's clear is we are definitely intending to pursue more aggressively retail, you know, investor in order to structure adapted product for their needs. And there's two reasons for that. The structural environment of where the interest rates are and will continue to be for Euro funds, as an example, which you know is sort of the preferred saving instrument in France for our retail industry. It's not going to produce return for much longer. So we have to find solution for the French saving to be redeployed in higher return products. And if we can achieve this by redeploying those savings into the real economy, which is really what our government is supporting in terms of trend and allowing us today through some regulation, including La Lua Pact, then we can really kill two birds with just one stone. So these are our convictions. And why does Eurasio can do that? It's because of where we are. Out of the $22 billion, that's one of the first slides that we have in our presentation, 73% of our AUM is private equity, from venture to growth to smaller mid-cap, upper mid-cap. But also we have private debt and we have real assets. So we are the perfect— sort of player to be constructing in an innovative way, shall I say, adapted products for retail in search for returns, liquidity, and also protecting their initial investment. If there are some other opportunities, like Aviva France, yes, we will continue to investigate. But there are other ways to reach our goals that we are already working on.

On the other question of Alexandre Gérard concerning the diversification of our net asset value, you know, with more than 50 direct investments, not mentioning all the investments in which we are involved, through ID Invest, and we should raise that figure to north of 300. The portfolio is now very diversified. Our largest asset stands around 5% of our NAV. So it's effectively a very diversified portfolio. Maybe now back on the line.

The next question in the queue is coming from the line of Pierre Bousset from HSBC. Pierre, you're on mute right now. Go ahead.

Thank you. Good morning, Virginie. Good morning, Philippe. I have a few questions regarding the fundraising activity. First of all, I would like to understand how you measure the performance of your fundraising team. whether or not you look at the performance. Secondly, as analysts or investors, how can we know whether or not you have reached your targets in terms of fundraising? And thirdly, you have a rich program of fundraising over the next two years. What do you... think will be the balance sheet commitment over these two years, and what will be the percentage of the fundraising activity which will come from the balance sheet. Thank you.

Pierre, just one comment, and maybe I will leave a Virginie comment on performance measures and targets. Just to emphasize the fact which is very important, All the figures that we have communicated regarding fundraising only include third-party money raised and not balance sheet commitments. So balance sheet commitment would come on top of the figure of the 2.9 billion, for instance, on which we communicated for last year. That's only third-party money. Balance sheet commitment would come on top of that.

Yeah, we've always communicated only on third party. But OK, to your question, so how do we know we met our target? Well, I have to say you have to trust us on this one, meaning we don't communicate in anticipation our detailed targets. So, basically, we don't communicate our budget, which I think is sort of quite classic. However, we do tend to tell you where we stand compared to what was our initial target. So, 2020, we are above our targets, Pierre. We've raised more money in 2020 than what we had in our budget. And that budget was done at the end of 19, very early 20. And that budget wasn't even, you know, assuming anything close to the crisis that we had. But we are above targets or above budget, fundraising budget for 2020. We do have... you understand that very ambitious targets for 21-22. We quite often look at two years together or like 18 months together because you know it takes time between the moment you start fundraising and you first close, you first market, then you dry close, then you first close, and then it takes time to roll over months to finally... final close. But over the next 24 months, we have very ambitious targets, and hopefully we'll be able to tell you 12 months down the road where we stand compared to those targets. We do measure our fundraising activity. Many KPIs, Pierre. How many meetings? How many new meetings? How many re-ups in our existing funds? How many new investors? For what amount? After how many meetings? How many years of, you know, interaction with those new investors? So, heat rate, like any commercial team, you could think, you know, how much are you interacting with your clients? How much transformation in your commercial team? in your commercial coverage of your clients? Have we, as a group, but also individually, been able to succeed? So we're tracking very closely what the activity and the success rates of our individual team and as a group. You should expect for 2021 a very intense year of growth hiring and increasing our firepower in terms of people in that team that we called investment partner under the leadership of Christophe Bavière. So, we'll put a lot of fuel and human resource in that team, both through significant hire outside of France, in the north of Europe, in the U.S., more commercial on the ground, and also a number of agents working with us hand-in-hand to fundraise for the program that we have for the year. You want to comment, Philippe, on balance sheet commitments? What could, you know, sort of target?

Yeah, I mean, it's outside of the figure, I would say, because we do not report on balance sheet commitment in the fundraising process. It's clear that on the more mature business unit of Eurazeo, Eurazeo Capital in the upper mid-cap, Eurazeo Payment, SMEs in the lower mid-cap, and as Virginie mentioned, for the future also, Eurazeo patrimoine, maybe Eurazeo infrastructure, and potentially next year, Eurazeo brands. We combine balance sheet money with third-party money. So for this strategy, we can say that we have a specific commitment, a sizable commitment. What I can say is that on the road, we have started the fundraising of Eurazeo PME4 fund, which should be significantly larger than Eurazeo PME3 that you know, which was about 600 million euros combined balance sheet plus third-party money. And for the next one, possibly with a majority of third-party money. And we are starting this year the fundraising of Eurazeo Capital 5, which should also be larger than Eurazeo Capital 4. And with a balance between third-party money and balance sheet money, which should be roughly equivalent or slightly larger than for Eurazeo Capital 4.

Pierre? Pierre, it's your last earning call and full year result call with us. And we wanted to thank you for your amazing support for, you know, a decade now. More than a decade. And wish you two decades. And wish you all the best for your future endeavor.

Thank you, Pierre. Thank you, Virginie. Thank you, Philippe. It has been a pleasure.

I think we are now at the end of this session. So, again, thank you very much. Thank you for your questions. And if you have any further questions, we remain at your disposal to answer your questions. Virginie, you want to say the last word?

No, perfect. Pierre and I, our team will, as usual, be your partners to answer any additional ones that you have. Thank you for your great question today.