Eurazeo agreed to acquire a 30% stake in French private equity firm Rhone Group, the investment company said in a statement Wednesday.
The transaction valued at $100 million in cash and 2 million newly issued shares of Eurazeo is expected to close by mid 2018, subject to regulatory approvals, Eurazeo said. Eurazeo shares are currently at €72.88 ($86.92).
Rhone has €5 billion in assets under management across both its private equity business and its real estate joint venture with collaborative workspace provider WeWork. Under the deal, each firm will remain independent in making investment decisions and daily operations.
Virginie Morgon, deputy CEO of Eurazeo, who will become CEO on March 19, said in the release: "Capitalizing on our model that combines permanent capital and third-party money, we have successfully built over the past few years a multistrategy international investment firm. Today's transaction with Rhone accelerates this strategy. Beyond the financial investment in a top-performing asset management company, this agreement represents a valuable opportunity to significantly broaden our transatlantic reach and gain access to a wider universe of investors."
Eurazeo has €7 billion in assets under management, including about €1 billion in private equity.
