Virginie Morgon, one of many uncommon feminine leaders of a personal fairness group, has been ousted from the helm of France’s Eurazeo after dropping the assist of its two largest shareholders.
An announcement from Eurazeo on Monday mentioned the supervisory board and Morgon “collectively determined that her duties as CEO and member of the chief board of Eurazeo ought to stop”.
The agency introduced the nomination of latest management for the publicly traded French group, which has €32.4bn in belongings beneath administration, together with practically €23.2bn from third events.
The management overhaul marks the end result of a number of years of squabbles and adjustments inside the Paris-listed firm’s shareholder base.
Eurazeo’s historic anchor shareholder is the aristocratic David-Weill household, one of many key shareholders in Lazard funding financial institution. Earlier than becoming a member of Eurazeo in 2008, Morgon spent 16 years at Lazard in New York, London and Paris, and was a protégée of former Lazard chair Michel David-Weill, who died last year.
Morgon took over as chief government in 2018 and has been instrumental in growing and diversifying Eurazeo past its roots in mid-market non-public fairness in its home market. The corporate’s funding methods now embody enterprise capital, non-public fairness, non-public debt and actual belongings, and it has 12 workplaces globally.
Shares in Eurazeo, which has a market cap of €5.1bn, dropped 2 per cent on Monday and are down 10 per cent over the previous 5 years.
In April 2017, it emerged that rival alternatives manager Tikehau Capital had began to construct up a place in Eurazeo’s share capital. The next month, Crédit Agricole put its 15.4 per cent stake in Eurazeo up on the market, and the non-public fairness group’s administration feared Tikehau would possibly use the chance to take a position additional and develop into its largest shareholder.
The Decaux household, which owns the eponymous outside promoting enterprise, was introduced in as a white knight, and its funding automobile JCDecaux Holding purchased the Crédit Agricole stake in June 2017. Tikehau reacted by promoting out of Eurazeo by the tip of 2021.
Based on folks acquainted with the scenario, the Decaux household, which now owns 18 per cent of Eurazeo and is its largest shareholder, and the David-Weill household, which owns 16 per cent and is Eurazeo’s second-largest shareholder, had three most important considerations.
They wished to speed up the push into asset administration, they felt that Morgon’s administration model was not sufficiently collegiate, and so they had grown annoyed with the corporate’s lacklustre share worth progress.
Eurazeo is now buying and selling at an identical stage to when the Decaux household purchased into the group. Following the demise of Michel David-Weill, Morgon might now not depend on the David-Weill household to assist her and be a foil to the group’s largest shareholder.
Jean-Charles Decaux, president of the supervisory board, mentioned in an announcement that Morgon had “accelerated the group’s progress, diversification, and internationalization”.
Underneath Morgon’s tenure, Eurazeo pushed into the US and expanded by acquisitions reminiscent of a stake in New York-based non-public fairness agency Rhône Group and French non-public fairness supervisor Idinvest. The agency’s belongings have greater than doubled from €16.8bn on the finish of 2018, to €32.4bn.
Eurazeo on Monday introduced what it referred to as “a brand new, collegial, and targeted” government board that it has charged with accelerating its place in third-party asset administration and enhancing efficiency. The brand new government board consists of two chairs, Christophe Bavière and William Kadouch-Chassaing, in addition to two different executives.
Bavière is the founding chair of Idinvest, and Kadouch-Chassaing is Eurazeo’s basic supervisor of finance and technique.
Morgon mentioned within the assertion that she was leaving Eurazeo “with large delight within the profitable transformation of the group”. She didn’t reply to requests for additional remark. Eurazeo declined to remark past the assertion. The Decaux household couldn’t instantly be reached for remark.
Extra reporting by Arash Massoudi and Kaye Wiggins