Eurazeo SE (RF) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the Eurazeo 2021 Half Year Results Conference Call. I am pleased now to hand over the call to Madame Virginie Morgon, CEO; and to Mr. Philippe Audouin, Group CFO. Madam, sir, please go ahead.

Good morning, everyone. Thank you very much. I'm here this morning with Philippe Audouin to welcome you to Eurazeo's half year results for 2021. It's a real pleasure to be able to announce such a remarkable set of figures today. But let me stress that these results are the outcome of our steady pursuit of a clear strategy over time, combined with powerful execution by our teams. Most importantly, we are here today because, first, we've made smart investment choices in the right sectors over the last few years. Second, we've successfully pursued our transformation strategy towards asset management, and those results for H1 shows it. Third, our portfolio companies are performing very well across the board. And finally, maybe overall, our people, our portfolio companies and our group have all done a great job of steering their way through the pandemic since early 2020. So let's get in. Our first half results are an excellent illustration of our new purpose: power, better, growth, which was revealed as you recall last April. Power, we have accelerated our development by expanding our expertise, notably in sustainable infrastructure and health care, and we are strengthening our European leadership as a multi-specialist alternative asset manager. Better, we have launched new funds, which will be part of the solution as we invest in the green economy. Eurazeo is turning its funding power into a catalyst for transition through our impact funds. And growth, we have delivered on all fronts with excellent results. Fundraising, assets under management and net asset value are all at record highs, while we continue to deploy capital in key sectors. The figures we are announcing today are also a real endorsement of our ambition for growth. Over the last 12 months, our assets under management increased 39% to reach EUR 25.6 billion ahead of Eurazeo's medium-term trajectory to double its assets. Over the same period, our net asset value per share rose 42% to almost EUR 100, thanks to the excellent performance of our team, our portfolio and strong execution of our exit program. Our fundraising activity is at its highest level ever. EUR 2.4 billion have been raised over the last 6 months, more than twice what we had raised in H1 last year. Several of our funds have closed above their target sizes. So let me give you a few of those highlights. First, EUR 1.6 billion raise for growth, our biggest program for that investment strategy, above our original target. We are, today, the European leader in the category. We also successfully closed our latest private debt program at EUR 2 billion with the support of large international institution across Europe and Asia. We also closed our latest secondary program at EUR 1 billion, well above its target. And finally, we have launched the fund raising of our ESMI buyout flagship off to an excellent start, with EUR 700 million already secured. In all these programs, we have extended our outreach to include private wealth alongside our institutional investors, of course, making us the biggest private equity player in France for mass affluent investors. This semester alone, we have raised EUR 210 million from this category. We expect to continue the strong momentum of fundraising in H2 and in 2022, with several of our flagship funds to be launched from September. The mid- to large cap strategies, continuing the [ SMID ] fundraising, digital for and probably growth for in the months to come. The remarkable performance of our portfolio, combined with great execution of our exit program, have pushed our net asset value to a new record level. NAV increased by 18%, dividend included, in the last 6 months, and is now at a new high of almost EUR 100 per share. I'd like to highlight 2 factors, which really explain that growth between December '20 and June 2021. First, we made the right and very relevant choices in terms of sectors. And then within those sectors, we found the right targets. The overall performance of our portfolio is outstanding and is outstanding across the board. Philippe will come back to the in section on the financial. Our mid-cap -- our small cap or real asset companies are going from strength to strength operationally. Of course, I'd also like to single out our growth strategy, which performed exceptionally well in the first half thanks to one of the better portfolios in Europe, and let me name a few of our companies like ContentSquare, BackMarket, ManoMano, Vestiaire Collective, or Doctolib. And these are the French companies, but PPRO and Base Hit and Adjust and think all those companies, Thought Machine, are for most of them outside of France, and they're as successful and as growing as some of the French example I've just given you. The second factor I would like to highlight here is the strong execution on our well-timed exit program, which has generated EUR 6 per share of additional value crystallized in our net asset value for the semester. So talking about exits. In line with what we said, if you remember last November, November 2020, during our Capital Markets Day, we accelerated our exit program in H1, taking advantage of the excellent market conditions to sign exits generating top-notch cash-on-cash multiples between, as you can see here, 2 and 3x. These well-timed exits included companies like Trader, first -- 1 of our first investments in the U.S., In'Tech Medical, from the seed investment strategy, Planet and Grandir, the mid- to large investment strategy. The EUR 1.8 billion of exits that we have announced so far this year corresponds to about 1/4, 25% of our portfolio at the end of December compared to an annual average of 18% per year over the last 5 years. So that's a reference to show and highlight how substantial that realization program has been in line with what we announced back in November. What's important, though, is that there is more to come. Our substantial exit program is set to continue in the second half of 2021 and through 2022. So we should expect -- you should expect significantly more value creation going forward. One thing that we know. The right choices pay off over time. Over the last few years, we've been concentrating a lot of our firepower on building up our strengths in certain sectors. And today, we continue to invest in quality assets to create the successes of tomorrow. Tech, consumer, health care, financial services and business services represent more than 90% of our deal flow in private equity. The deals we signed in H1 are indeed very promising. They all are tech-enabled or direct-to-consumer, while also being diversified across their underlying markets. One example of this is Aroma Zone, a digital platform responding to the increasing consumer demand for natural cosmetics. Another example is Ultra Premium Direct, tackling the growing interest in pet health and well-being through its online subscription services. We are building platforms of expertise across different industries and sectors, as you can see here. The best example of this is in tech. We have 2 of the best practices -- 2 of the best practices in Europe on VC and Growth, who, between them, cover the full tech ecosystem in Europe. These teams work closely together, sharing their insights on new trends, sharing senior advisers, sharing networks and irrigating the whole group with their tech expertise. Now we are building up a similar approach in health care and biotech. It's 12% of our private equity assets under management today. You should expect this to grow in the future to cover this [ steadfast ] growing market in Europe and the U.S. on telemedicine, diagnostics, new molecules and medical trials. The third area I'd like to highlight this morning in which we are building a platform of expertise is the green economy. With our dedicated teams on sustainable infrastructure including Maritime, we are currently working on our next move in this sector, in line with our [ core plus ] objectives. Our strong credibility on energy transition is based on the fact that ESG is so deeply embedded within our DNA. As you know, ESG is a cornerstone of our investment process from due diligence to exit. We have been working on our categorization recently, and we now have 80% of our funds, which fall within the highest standards of the new European regulation, namely Article 8 and Article 9 qualified funds. We're now accelerating the launch of our impact funds that are designed to be part of the solution. We have already announced ESMI, the sustainable mild-time infrastructure to finance the transition to cleaner fuel and better efficiency in ships and maritime infrastructures. Another initiative is NovSanté, which invests in small and medium-size health care companies in France. We have a very rich [indiscernible] here, and there'll be some announcements post summer. We've also hired a seasoned team, which will invest in green infrastructure. We have a lot of other projects in renewable energies, hydrogen and biotech. I'm very proud to say that our ESG program, O+, that we fully announced in September last year, had no equivalent in our industry. We are now set to accelerate even further ahead of the rest of the field by further leveraging its expertise and credibility into more funds with more capital deployed to power better growth. Thank you very much. Now Philippe is going to take us through the key figures of the semester.

Thank you, Virginie. Good morning, everybody. I'm glad to detail with you our strong first half, with growth flowing through our asset management activity, high capital gain, thanks to recent exits, a very robust portfolio performance and solid NAV growth. Let's start with our asset management activity. Thanks to record level of fundraising in 2020 and in H1 2021, we saw a growth of 17% of our recurring management fees in H1 to EUR 135 million. In this figure, the third-party management fees increased by 30% on the semester, whereas fees calculated and booked for the management of our own balance sheet decreased slightly at minus 5% following the recent exits of this semester. We continue to enjoy a high average level of fees at 1.4% given our favorable mix of products skewed towards private equity. Our fee-related earnings were up 31% to EUR 38 million in the first half. The strong trend in management fees makes us confident that our FRE will be up again in 2021 despite our current investment in the platforms, as described by Virginie earlier, and the expansion of our international positions, which will support our development, but weigh on our margin in 2022. In the medium term, as previously announced, we expect our FRE margin to progressively reach benchmark level of 35% to 40%, thanks to the operating leverage of our activities. In line with these strong results, the value of our asset management activity in our NAV is progressing. In 2020, we achieved a value creation of 23% for the full year. We already recorded a 13% value creation in the first 6 months of 2021 alone. Bear in mind that we value our asset management activity conservatively, applying our usual standards. We base our calculation from historical figures, last 12 months, when the market usually looks at midterm projections. And of course, we use conservative multiples, especially when you consider the current valuation of some of our peers, the recent IPO of Bridgepoint provides a good benchmark. Let's now -- move now to our investment activity. Its contribution recorded a sharp rebound. As you know, H1 2020 suffered the full impact of the lockdown, with no significant exit and cautious impairment in the travel and leisure segment. In contrast, H1 2021 benefited from the capital gains following the exits closed during the semester. Our P&L was also favorably impacted by the change in fair value passed through the P&L of our growth companies. Even for the exits announced in H1, like Planet, Trader, Grandir or In'Tech Medical already positively impacted our NAV. Please note that the impact on our P&L will only happen upon their closing likely by the end of 2021 or beginning of 2022, pending clearance from competition authorities. Finally, let's have a look at the contribution of our group companies. As Virginie mentioned, the activity of our portfolio companies was again strong in H1, generating a strong contribution. Our growth company's revenue grew again 50% year-on-year. In our consolidated portfolio, therefore, not including our growth segment, which is not consolidated, EBITDA, excluding travel and leisure, grew 58% year-on-year and even plus 60% compared to H1 2019, i.e., before COVID. We benefit here from the efficient management of our portfolio companies and also from the selective focus on promising segments of our investment strategy. Lastly, although our 3 remaining travel and leisure companies are still impacted by travel restrictions, we're encouraged by what we see as positive news flow for each of them. Planet, we announced in H1 the sale of Planet at a 2.5x cash-on-cash multiple and circa 19% IRR. Given the great potential of this company in the pivoting to payment, including the latest acquisition of 3C, which we did last year, Eurazeo will reinvest, alongside Advent, to continue to seize growth opportunities in the digital payment space. WorldStrides, we can see the first signs of recovery and bookings for 2022, notably on U.S. domestic travels. And [ Great Hotels ], [ 30% ] of our hotels have reopened with a current occupancy rate of around 60%, which is fine given the optimized cost structure. All in all, there is more upside to look forward to as the activity starts to pick up. To sum up, we have delivered a strong net result in H1, with EUR 476 million of net profit group share and have a positive momentum moving forward. EUR 476 million is the second largest semester result over the last 12 years. Of course, this is a sharp step up from H1 2020, which was a low point, but all of our activities also improved significantly compared to the pre-COVID reference of H1 2019. Note that the contribution of our portfolio, excluding travel and leisure, reached EUR 165 million in H1, which is 5x more than H1 2019. Turning now to our net asset value. We achieved a strong growth value creation in our portfolio of companies, with an average of 22% over the last -- over the first 6 months. All of our divisions contributed to this growth. A number of factors account for this. First, the strong performance of our companies that I highlighted earlier. Second, the positive impact of the recently announced exits: Planet, Trader, Grandir and In'Tech, in particular. And third, the value momentum of the tech space with several of our growth portfolio companies qualifying as Unicoms with companies like Doctolib, ManoMano, ContentSquare, Vestiaire Collective or MessageBird. We expect this positive momentum across our portfolio to carry through in H2 and 2022, although to a lower degree, with further exits and headroom and valuation in certain divisions where NAV is still relatively young. For example, Eurazeo Brands, where 50% of the NAV has not yet been revalued. As a result, we continue to deliver year after year a strong performance for our shareholders. Over the last 10 years, we've grown our NAV at a compound rate of 13% per annum, with no down years. With the NAV growth of 18% in H1 2021 alone, we are now reaping the benefits from our strategy, combining balance sheet investments and the development of our asset management activity. Finally and to conclude, we have maintained, as always, a strong financial position with more than EUR 300 million of net cash at the end of June, a fully undrawn revolving credit facility of EUR 1.5 billion and dry powder of EUR 4.3 billion, all of which gives ample headroom to seize further investment opportunities. And on that note, Virginie, I leave it to you to give us the outlook.

Thank you very much, Philippe. So at our Capital Markets Day last November, we laid out our trajectory for the coming years. And we can say that we are on track and even already ahead of schedule. For the shorter term, '21 and 2022, we will continue our substantial asset rotation program, crystallizing value in our net asset value. And we expect fundraising in '21 and '22 to be significantly above the record level of 2020, with a higher level of ambition for successive flagship funds during the period. In the next 5 years, we are in advance with our trajectory to double our AUM and well on track to increase profitability. All of our teams are mobilized to continue this excellent momentum and create value for our stakeholders through the combination of growing, recurring long-term revenue stream and stronger capital gains linked to bigger, better and more international [ deals ]. Thank you very much for listening and being with us this morning for this very important milestone for Eurazeo. Thank you very much. We are now ready to take all your questions.

[Operator Instructions] We already have a question from Mourad Lahmidi from Exane. Sir, please go ahead. Sir, David Cerdan, you're live, you can ask your question.

Hello? This is David Cerdan. Can you hear me?

Very thankful if you can talk louder, please.

This is David. Do you hear me?

Yes. Okay.

Sorry. I will be very brief. It's regarding your capacity to invest. So your dry powder is more than EUR 4 billion. Are you confident in your capacity to invest such an amount? And do you see a risk of facing some difficulties in investing in the future?

Thank you very much, David. Can you hear us well for all of you connected? David?

Yes.

Okay. So to your question, yes, we are confident that we can invest in the years to come. The dry powder has increased progressively because we have been raising significant funds over the last 6 months. So that's why we're here at EUR 4.3 billion. Remember that this is across different investment strategies. So it includes private equity, private debt, et cetera. And also, you do know that we have worked over the last 5, 6 years to enrich our geographical footprint in order specifically, not only, but specifically to enrich our deal flow. And you saw from that slide where we, this semester, had analyzed 1,000 opportunities and then investing into 1% of these. I think, in our sector, there is that ratio of 1% to 2%, which you find for players of our size. So that was a good decision to make years ago to expand presence in Europe, expand presence in the U.S. So each of the investment strategies certainly have a very rich, deep flow mid-large, small-mid. I mean you saw how many investments, the [ SMID ] investment strategy has made. We're talking 5 investments over the last 12 months. So a lot of activity for [ SMID ], a lot of activity for brands, and of course, a lot of activity for growth. And the pipeline of our deal flow is very rich. So we are turning down more than we ever have in the past remaining as disciplined as ever.

I would add to what Virginie said that the building of platforms that Virginie described in the presentation makes Eurazeo a partner of choice for the sectors in which we are focusing now, which also helps to develop the deal flow in these sectors.

Thank you, David. I hope that answers your question.

Yes. And I have another question. Your 35% to 40% free margin objective. Does it depend on the assets under management? Or is there some other criteria or factor for you to achieve this objective?

Well, it's mostly a leverage effect, David, with the growth of our activities in the asset management. The margin is primarily driven by 2 things. First, as I just said, is the size of the activity. And second is the pace of development. We are now in a period where we are growing fast and growing fast for us means investing in people, investing on locations. For instance, and as I said in my presentation, on the short term, it should weigh a little bit on the margin. But as soon as we can take the fruits of this development, that will enable us to accelerate the increase in the margin.

And just to complement Philippe's answer, we're really talking the FRE margin. So of course, you are now super knowledgeable about the alternative asset management industry. We now have a new player and great for them. They've been through a great IPO with reach points. So we have another benchmark for us, Eurazeo, as a public company. But you can then deep dive into the analysis of the profitability of each of the players. So we're talking here fee-related earnings margin, which appeared on the slide that Philippe was presenting on a full year basis. Of course, you can do the calculation on the half year basis. On the full year, we were at 28.7% in 2020. We're expecting some increase of margin in the short term in 2021. And then it all depends about reinvestment in people and also flagship fundraising because the operational scale or leverage, should I say, the operational leverage is, of course, accelerated with the size of your funds because they don't need some big step change in terms of people. Some of the money is sort of managed on a marginal basis. So FRE margin excludes performances. If you were to include performance fees, and we have communicated on that semester on a EUR 90 million contribution of our asset management activity compared to EUR 135 million of management fees. But what we are driving as a management team is the fee-related earnings margin.

Okay. Last question, if I may. Just regarding your asset management company. It accounted for roughly 20% of NAV. Do you think that this activity could represent more than 20% in the future -- in the near future?

Of course, I would say, yes, David, on that for probably 2 reasons. First, there is the capacity to accelerate the development of this activity, as the figure which I presented among others regarding fund raising confirmed that potential. And second, the way we value our asset management activity, but you have all the information, you have the FREs, et cetera, as I said, is conservative. And of course, if we were to value this activity on par with what we can see of the market, and you know that, of course, better than anybody, that would dramatically increase the weight of this activity in our NAV.

A And just adding most of our peers in Europe are valued on the forward next 12 months, 2023, sometimes fee-related earnings on a basis of multiple, which are, on average, like 25, 27x fee-related earnings 2023. You've seen the Bridgepoint IPO, and I think they are currently trading on a forward multiple on 2022, like 35x. And as Philippe was saying in his financial presentation, we are valuing our activity and an LTM at the end of June and the second half 2020, first half 2021, and on a much more prudent or conservative multiple. And if you're looking at the sort of side by side between Bridgepoint and us, you can see that we are not so -- we are quite alike. I mean, we have assets under management which are close. We have fundraising, which seems to be, at least for 2021, close. We have management fees of order of magnitude -- in order of magnitude. [ HEC ] our partners group are much larger players in our industry. But even players of our size seems to be trading because of growth potential and momentum at very attractive FRE multiples. So we'll see where that takes us in the future, but it's probably a sort of clear yes midterm to your question.

Not to mention the consideration we may have about the discount, given the visibility and perspective of our asset management activity. The fundraising, which we are doing today will positively impact our management fees and FREs for at least the next 5 to 10 years.

Okay. Maybe I could just rephrase my question. My question was more, do you expect to make some acquisition in the asset management activities? Or seed some new funds in order to accentuate your asset management company profile?

Well, we are seeding new funds. As you know, I've mentioned a number today, the thematic impact funds. They're all being launched, and with third-party clients, LPs and Eurazeo, the ESMI fund, Maritime Infrastructure Funds, the smart city that I mentioned, the infrastructure, the green and digital transition infrastructure team. The team joined us early this year. So I mean all those initiatives are exactly what you're asking, are you continuing to grow your asset management through either organic? I mean it's about a theme of investment. It's about people. It's about dedicating resources. So the answer is yes. To the question, are we going to continue to buy? You will not be surprised that it's going to be analyzed and assessed and decided on an opportunistic basis, on a case-by-case basis.

We have another question from Alexandre Gerard from CIC.

Virginie, Philippe, can you hear me well?

Yes, perfectly.

Yes.

Congratulations for that good set of results. Four questions on my side, please. The first one is related to your asset rotation, which is going to be exceptionally high in 2021, close to 40% of your portfolio if I understand well. So what about 2022? Can we expect such a high asset rotation? Or is it going to be closer or maybe slightly higher than your 18% historical average? So that's my first question. Second question is related to the EUR 2.4 billion you raised over the first half. Can we -- can you give us some more color on the geographic origin of the money? I mean, are you able to attract more non-French or non-European investors? Third question, is related to your tech companies. Are there any of these companies in your portfolio, which might be ready to go public given the price that the market is hot for these types of companies? And the third -- the last question, sorry, the fourth question is related to your headcount at Eurazeo. Can you remind us at June-end how many people are working for Eurazeo? And in 4 to 5 years' time, when you said you're doubling in AUM target, how many people would be needed to raise such a high asset?

Okay. Thank you very much, Alexandre. Okay, maybe not to your sort of order. Let's start with people. We have about 370 people, 380 people at the end of June. And 2021 was certainly a big year of new hire. So you should expect a bit more by the end of the year. But those hires and that trend is set to cover the need that we have for, I would say, some of the years or 18 months to come, meaning we're gaining scale and pertains to not only be able to deploy, but realize our investments and also continue to fundraise. We have already, over the last 12 months, and that 380 number includes that or reflects that, already strengthened significantly our investment partners that our sales organization to cover our clients. We have done that already. You remember, September last year, we announced 100% acquisition of Idinvest. We rebrand in our 1 team, 1 voice, 1 strategy, but in-between then and now, we have already hired significantly in investment partners. So I think that -- there are steps in your growth. And I think we anticipate with Philippe, that with 380 and a bit more by year-end, we are set and ready to embrace the growth that we have ahead of us, hopefully, for the next 18 months. On your question on IPO, I mean there's clearly a trend, which I see very interesting and I personally welcome because companies are back to the markets. IPO is flavor -- flavored again and attractive, it seems, to entrepreneur and management team. The U.S. has had record level of IPOs over the last 3, 4 months, just like we had in Europe. It could be IPOs, it could be destacking. At the end, it's about becoming a public company and successfully expanding in a public journey. Given the performance of some of our tech portfolio companies, and you may have seen a few days ago the IPO of Sophia Genetics, which is part of our biotech team, Kurma, which is part of our growth portfolio, sorry. This, I think, IPO, yes, might be, in the months to come, an interesting potential exit depending, of course, on market conditions for a number of our tech companies. I won't be able to say much more than this, but I don't think you will be surprised by the answer.

Yes, concerning the geography of our fundraising, you know that historically, and for obvious reasons, France was lion's share of our fundraising north of 50%. On H1, France has decreased below 50%, and Europe outside of France represents slightly less than 20% as well as North America, the remaining part being spread between Asia and Middle East. That reflects tremendous opportunities for us because, as Virginie said, we are strengthening our investment partners team, which is in charge of dealing with our clients. And we have strong opportunities to develop our fundraising opportunities among others in North America. You know that North America gathers about 50% of the LPs in the world. And for us, it's less than 20%. So we see that as a huge opportunity to effectively increase, accelerate our fundraising position. And regarding the asset rotations -- regarding the asset rotation, we can expect further asset rotation by the end of 2021 and in 2022. And we think that we'll keep on supporting value creation or value externalization in our NAV. Effectively, we already divested, signed or closed about 25% of our NAV as of January 1. There is some exits which are planned before the end of the year, and we already have in view and in plan, not just in view, several exits for 2022.

We have another question from [ Joren Van Haken ] from Degroof Petercam.

Just a short 1 in your NAV, you reported for Eurazeo growth EUR 1.2 billion. I was wondering, does that already include the sale of the 32%, which was announced in February?

Yes. It's a good question. As I said, the NAV takes into account -- the increase in our EBIT takes into account the sales that are signed effectively which is not the case necessarily in the profit and loss because in the profit and loss, we can only book the capital gain when the exit is effectively finalized, effectively closed. So to answer your question in our NAV, effectively, we take into account the expected impact on our NAV of the sale of our group companies. As you know, it's -- each of these exits has been an opportunity to externalize hidden value, if I may put it that way, in our NAV. That's represented on H1, plus EUR 6 per share of value only linked to the -- the reveal of this hidden value, that's about 32% of the value of the assets, which have been sold.

It seems that we have a question from Mourad Lahmidi from Exane.

Can you hear me now?

Yes, very well.

Okay. So I have a couple of questions. First on fundraising activity. If I'm not mistaken, you were expecting 2021 to end up slightly above EUR 3 billion. You're already at 2.4 billion. So what should we expect now, a number around EUR 4 billion? First question. And my second question, I think, when you commented on your FRE margin, you hinted at some margin slowdown -- margin progression or slowdown probably in 2022 as a result of your investments in the platform. So should we expect some pause in the FRE margin in 2022?

Okay. On the fundraising, we never communicated EUR 3 billion. So it may come from you guys, but not from us. So we won't comment on this.

What we have said is -- effectively is that the average of 2021 and 2022 should be above the record high of 2020.

So I think we've given you -- well, first, you have the first half results, 2.4 billion. You also have an understanding of which -- with which product and investment strategy, we will be in the market from September onwards. It's clearly detailed in the press release, and we've named a few of our flagships in the press release, which will be in the market. So you know their size, and I think you can make all their assumptions of how long does it take to raise the flagship and it's probably going to be in '21 and in '22. So I mean, no doubt it should be 2 big years of fundraising, but we won't comment on any number for evident reasons. On the FRE margin, maybe Philippe wants to comment on this?

Yes. As I said, the FRE margin in 2022 will be impacted by all the investments and particularly in people, which will wait for the full year basis next year. But keep in mind that if the FRE margin may effectively make a pause, which is not for certain today, the FRE number will keep on increasing significantly in 2022.

Our next question comes from Geoffroy Michalet from ODDO BHF.

Can you hear me?

Yes. Very well.

My question has to do with the IPO of Bridgepoint and a comparison with you. Interestingly, we noticed that in Bridgepoint, the house carried interest, will be between 22% and 35%. I think you are a lot more generous for your shareholders. Could you clarify how much of the carry is the company entitled? And what will be your strategy in the future for the coming fund that you are raising?

Thank you very much for the question. Yes, we saw the announcement, and you probably follow a number of alternative asset managements, which are publicly quoted. Many asset managers share the carrying that is being paid by our clients depending on performance. In a ratio, which is between 60-40, 60 for the team, 40 for the house, that you call it. Call it the GP, or 70-30. These are averages, 70 to the team, 30 to GP. So if I heard you well, and I think we've also understood the same thing, I think Bridgepoint is going in that direction. I mean they can't make it happen just now because they are program in place, so you can't change the carrying sort of destination in current programs, but they are heading towards something which seems to be 70-30. And I confirm that we are either -- either between -- either at 60-40 or 70-30 depending on the scope which investment strategy and whether they were born as a Eurazeo strategy or whether we were acquiring those investment strategy through M&A, and you make changes in time, but not immediately. But I think you're very right. And there's many players now, which disclose this allocation. Partners Group, KKR, many players you will find give that allocation. And some actually go bigger to the GP in a ratio of 40-60, the other way around or 45-55, but yes, you're very right.

We have another question from Christoph Greulich from Berenberg.

You have very impressive numbers this morning. So congratulations to that. Yes, 2 questions from my side, if I may. The first one with regard to WorldStrides. You've given us a brief update on the operational situation and that you see first signs of a recovery. So I'm just wondering, has there been any changes to the valuation for the assets since December?

Has there been any change of the valuation?

No. Yes. Thank you, Christoph, for your question, and thank you for your comments as well. Regarding WorldStrides, we're starting to see some recovery, as I said, primarily on domestic U.S. travels. But as you know, the peak season in this activity is from, let's say, April to June, July. So we are starting to have bookings for this season, and we're waiting for confirmation because we are not answering after summer, the most important period, I would say, for the bookings. So it's, again, a positive signal so far. In terms of valuation, we remain conservative. As you know, we had invested about EUR 220 million in the company initially. And we reinvested EUR 41 million last summer when we made the financial restructuring of the company. We have fully written down the initial investment of EUR 220 million, and we only kept in our NAV the additional amount of EUR 41 million, which is probably very conservative, but we have not changed that in the June NAV that we've just published.

Yes, that's very clear. The second question with regard to the accelerated divestment program. And yes, I think you have already delivered quite nicely on this initiative since the launch last November. What I'm wondering is, could you give us an idea of how far along we are in this program? So if you look at all the exits, which have been announced until today, are we still kind of in the early phase of the program? Are we roughly at the midpoint? Or how should we look at that?

You probably -- I mean, having already signed or signed closed or announced 25% of exits of our NAV January 1, this is already substantial compared to the average. That's why we were showing on that slide the 18% average, 16%, 20%. So you could hint that it's not the stop. You could hint that we've already made part of our -- a big part of the program. At the same time, in my opening sort of speech, I said there is more to come because we still have a number of processes and exits that we are managing, negotiating as we speak. And as time goes by, we're creating value in our portfolio. There's maturity, which comes in. There is this sort of cycle of life in our ownership of companies. So there'll be naturally another cycle in -- by 2022, as Philippe was referring to in his former answer. So you should assume there's still more to come. It's quite important for 2021 and also first half of '22, sort of a spillover of a number of transaction and sort of negotiation and processes that we are conducting as we speak. We always look ahead, 12 months ahead. So I can't be more specific for obvious reasons, but I think that gives you a hint.

I think that's right. I mean, do you think it's reasonable to assume that we are more or less at the midpoint of the program, is a fair assessment?

I can't really comment on this.

Well, it seems that it was our last question. We have no further questions in the queue.

O Okay. Well, if that's the case, thank you very much for your time with us this morning. As I said in my conclusion, very important milestones for Eurazeo, those results. I mean they are, for sure, good. But beyond the fact that they are good, it shows that we are we're making it happen. So thank you for your remarks, your encouragement and your time with us. As usual, we are all at your disposal, and Pierre and Haojing, more than any of us to answer any of your questions in the days to come. Thank you very much. Have a great day, and enjoy your summer.

Thank you for all of you. Have a great day. We know it's a busy day for you guys. Thank you. Bye-bye.

Ladies and gentlemen, thank you all for your participation. The call is now concluded. You may now disconnect.