Fund: Eurazeo Private Value Europe 3

The FCPR Eurazeo Private Value Europe 3 (EPVE 3) is a perpetual fund (evergreen) with a hybrid investment strategy. It invests in private debt (60% of its total allocation) and in private equity strategies (40% of its total allocation), via co-investments and secondary transactions. 
 

The fund's objective is to finance buy-outs and acquisitions of mature, profitable and established European mid-sized private companies (enterprise value €50m to €500m). 
 

The coexistence of two complementary, low-cyclical strategies offers investors regular deployment, broad diversification and exposure to a robust portfolio. Portfolio companies are selected by our dedicated private debt and secondary investment teams following a rigorous analysis process. Eurazeo has a long track record in both segments, deploying these strategies since 2003 for secondary and since 2007 for private debt. 
 

The EPVE 3 fund is part of Eurazeo's commitment to offering private individuals privileged access to private equity. Like all our funds offered to our non-professional clients, EPVE 3 systematically co-invests with our funds dedicated to institutional clients. As a result, our private clients benefit from the same quality of management and access to transaction sizes generally reserved for institutional investors, on the same terms.

Combining private debt and secondary markets means benefiting from the complementary nature of two robust, low-cyclical strategies, which can be used to build a resilient portfolio capable of weathering different market cycles. 
 

Eurazeo's private debt business consists of : 
 

• +200 transactions since 2007
• 6.8 billion committed
• 0% annualised loss rate since the creation of the team

The secondary business is : 
 

• +75 transactions since 2003
• 2.8 billion committed
• 0.3% annualised loss rate since the creation of the team

More specifically, investment in private debt is characterised by: 
 

• An attractive risk/return ratio
• Risk monitoring and protection through tailor-made documentation
• Eurazeo's systematic presence on the board of directors of financed companies
• Alignment of interests with the sponsor financier (private equity fund, majority shareholder of target companies), which contributes at least 50% of the equity in each transaction

Secondary investment is characterized by: 
 

• Strong diversification through different fund vintages
• Visibility over an established portfolio and exit horizons
• Mature, high-performing assets with low leverage
• Rapid and regular distributions

Investors are invited to consider all the risks inherent in investing in units of the fund, which are detailed in its regulations. The risks listed below are an extract of the risks mentioned in the fund regulations:

Risk of capital loss. An investment in the fund entails a risk of low return or even partial or total loss of the amount invested in the fund. In addition, as the fund offers no capital guarantee, the capital invested may not be returned in full.

Risk of illiquidity of the Fund's assets. The Fund will mainly hold securities that are not admitted to trading on a financial instruments market and whose liquidity may be low or non-existent. As a result, and although the fund will aim to organise the disposal of its holdings under the best possible conditions, it cannot be ruled out that the fund may experience difficulties in disposing of such holdings within the timeframe and at the price level desired or initially envisaged.

Risks inherent in all equity, quasi-equity and mezzanine investments. The purpose of the fund is to provide companies with immediate or long-term equity financing. As a result, the Fund's performance is directly linked to the performance of the companies in which it invests, which are subject to numerous risks, such as downturns in the business sector, recessions in the geographical area, substantial changes in the legal and tax environment, adverse movements in exchange rates, etc.

Taxation. Tax treatment depends on the individual situation of each investor, and the arrangements presented are subject to change at a later date. Investors should consult their own advisers before investing.

Past performance is no guarantee of future performance.