Private equity firm Eurazeo agreed to acquire a majority stake in Idinvest Partners, creating a private equity firm with more than €15 billion ($18.7 billion) in assets under management.
The firms said in a joint news release that the managers had reached a "firm agreement" under which Eurazeo would make a total €230 million investment in Idinvest, owning about 70% of the private equity firm. Idinvest's management would retain the remaining about 30%. The stake would be acquired from IDI, an investment company listed on Euronext Paris. IDI will sell its entire 51% investment in Idinvest to Eurazeo, with the remainder of the stake coming from management.
Following the completion of the deal, which is subject to regulatory approvals, the parties indicated that Eurazeo gradually will acquire the remaining shares held by management over the coming years.
Idinvest finances young, innovative firms across Europe. Its private debt business finances small and medium enterprises and midcap firms through the provision of senior and subordinated debt. It manages almost €7 billion in assets. The firm will retain management autonomy and management team will not change. Eurazeo will invest in the strategies managed by the Idinvest teams.
Patrick Sayer, CEO of Eurazeo, said in the release: "I'm particularly excited about joining forces with Idinvest, which has participated in many major European tech successes in recent years. This alliance brings value to Eurazeo in terms of strategic development."
Eurazeo has about €8 billion in assets under management. A spokeswoman could not immediately be reached for comment.