Eurazeo is creating a EUR10 million solidarity fund to buy and donate products from its investee companies to support communities affected by Covid-19, with the support of its shareholders.
The fund will be financed from Eurazeo’s cash holdings and by donations from the supervisory board, the executive board and the executive committee members.
The executive board members have decided to take part by contributing 10 per cent of their annual bonuses for 2019, payable in April 2020, to the solidarity plan.
The Paris-headquartered firm also said that “given the unprecedented uncertainty around the world and in line with the French government’s recent recommendations, Eurazeo will make a proposal to its shareholders to suspend its 2019 dividend.”
EUR7 million of the contributed capital will be used to support employees of Eurazeo and its subsidiaries who are in urgent medical or financial need.
Another EUR3 million of the funding will be donated to organisations providing immediate support to vulnerable groups affected by the current health crisis, but also on a more long-term basis, helping them deal with the consequences of the resulting economic crisis.
According to the Eurazeo, its entire business model – which features diversification across business sectors, geographies, sources of revenue and sources of growth, combined with a solid financial position – has developed over several years with the intention of reducing the investment company’s risk and increasing its ability to deal with situations that arise.
At the end of 2019, Eurazeo had EUR533 million of cash, plus a confirmed syndicated credit facility of EUR1.5 billion, which it increased by 50 percent and renewed in December 2019 for a period of at least five years.
Eurazeo also has EUR3.8 billion of dry powder; confirmed commitments from partners that have not yet been called up.
