Eurazeo Paris Ord

Welcome to the Eurazeo Q1 2026 Trading Update presentation. Today's conference will be hosted by William Kadu-Shasong, co-CEO. For the first part of the conference, the participants will be on listen-only mode. During the questions and answers session, you may ask in two ways, by submitting a written question in the box below the player or by joining the conference call and dial pound key 5 on your telephone keypad to enter the queue. Now I will hand the conference over to the speaker. Please go ahead.

Thank you. Good morning and thanks to all for joining this call. I am pleased to welcome you all to our Q1 2026 trading update. And as usual, let me walk through the key highlights for the quarter pertaining to first, fundraising, AUM and management fees, second, asset rotation, and third, the underlying performance of the on-balance sheet portfolio. be available to take questions. Let's start with our fundraising activity. We had a strong quarter in Q1, 2026 with 1.1 billion euros raised during the period, an increase of 11% versus last year. This performance was driven by first, strong inflows in private debt. It's more than 850 million raised in Q1. nearly twice as much as Q1 2025. This strong performance comes from the back of the top quarter track record of our direct lending funds and our leading position in the mid-market category. Second, a continued momentum in the secondary strategy, which makes up for the majority of the 200 million euros raised in equity during Q1. Our wealth solutions channel continues to grow nicely with AUM up 16% per annum to reach 5.7 billion euros. Inflows were similar in Q1, 2026, as in the same period last year. Our Evergreen Fund, EPVE3, enjoys positive net inflows with redemptions in Q1 well below 1%, and in line with historical average, in fact, a tad lower. We are still in the roll-out period for our new evergreen funds in the prime line, which should contribute more significantly in the coming years. As we highlighted with Christophe during our first year, full year results, sorry, our pipeline of fundraising for 2026 is solid and diversified, both on the institutional side as well as on the wealth solution segments. Let me give you an update on where we stand based on Q1. First, as we highlighted, we have four flagships which are expected to fundraise in 2026. We continue to benefit from the ongoing momentum in our direct lending fund, which will shortly be announcing a final close. We should shortly be announcing a first close of PME5, the lower mid market buyout fund managed by the Elevate team. We confirm that this fund has good traction, benefiting from the strong performance of previous vintages. In equities, we continue to have good inflows in secondaries, as highlighted before, and we are on the road with our gross equity fund on the back of a successful first closing and strong performance overall. Suddenly, we are on the road with five sematic funds. In equities and PBS, an impact Article 9 fund, which already had a successful first closing, as you know, as well as Eurasia's future of industries in venture, which is currently fundraising. In debt, also an Article 9 fund focused on decarbonization financing. And in real assets, two funds, Azoria in operational real estate is already on the road, and we are launching a second vintage in sustainable infrastructure after a successful first vintage. In Wealth Solutions, as we announced, we are rolling out our new evergreen products and we are initiating another growth fund for wealth investors. As we continue to fundraise dynamically, we post steady increase in both our AUM and fee-paying AUM. Total AUM stood at 39 billion as of 31st of March, 26, of 7% year-on-year, with AUM from third-party up double-digit at plus 1%. 14%. Fee-paying AUM were up 5% year-on-year, with fee-paying AUM from third parties growing double-digit at plus 13%. Third-party recurring revenues from asset management boosted solid growth logically, which we continue to voluntarily decrease the contribution pertaining to our balance sheet. Management fees from self-parties are up 10%, excluding catch-up fees and forex. Management fees from self-parties in private markets specifically are up 14% year-on-year, in line with fee-paying AOL. IMGP revenues were down 1%, excluding forex, performing the sales and wealth management activity at the end of 2025. IMGP had a positive momentum from most of its partners and from its own funds, especially in managed ETFs, but was impacted by market effects and some outflows of its managers specializing in gross equities in the U.S. Management fees related to EuroZero's balance sheet came at 25 million. They are down 16% due to disposals and lower balance sheet commitments and funds, in line with the strategy announced at the end of 2023. Regarding asset rotation, Group deployments were up 17% in Q1 2026 relative to last year, totally 915 million. Group realizations in Q1 2026 amounted to 550 million, a double from 220 million in Q1 2025. We were active both in private debt and in private equity. Of note, Our drive model from third parties continues to grow. It is up 9% and we think we are well placed to grasp investment opportunities. Let's now focus on the current trading of our underlying investment. As a reminder, we recently hosted a workshop on our balance sheet portfolio, commenting on its key characteristics, its performance, and the main lines. Both the link and the webcast to the webcast and the presentation can be found on our website. In the first quarter, the companies in the balance sheet portfolio continued to perform well operationally in spite of an arguably more uncertain environment. Companies in the buyout portfolios grew 6% year-on-year with a broad-based revenue growth across geographies and sectors. Companies in the growth portfolio boosted a plus 22% average growth, an acceleration from previous quarters, with the largest line in the portfolio performing particularly well. The most recent investments in growth for funds have seen average sales growth also accelerate at over plus 60%, 6-0, confirming their very good momentum. In real assets, hospitality revenues were up 6% in the first quarter sales, of companies in the sustainable infrastructure portfolio, also dynamically, by 36% on average. At March 31, 2026, the investment portfolio carried on the balance sheet was valued at 6.8 billion, and as usual, is not valued during the quarter. The portfolio value per share was 102 euros at the end of March 2026, consequently. We are now available for your questions. Thanks for attending this call again.

If you wish to ask a question, you may ask in two ways, by submitting a written question in the box below the player or by joining the conference call and dial pound key 5 on your telephone keypad to enter the queue. The next question comes from Nicholas Veselier from BNP Paribas. Please go ahead.