My Experience as an Investment Intern at Eurazeo
In this article, Dante MARRAMIERO (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2020-2023) presents its professional experience in Euazeo, a European leading Private Equity based in Paris.
About Eurazeo
Eurazeo stands as a prominent European firm within the world of alternative investments, boasting a diversified portfolio within various investment strategies, including private debt, real Estate, venture, growth, small-mid buyout, and mid-large buyouts. Eurazeo was initially the family office of the Lazard Freres family, but in 2018 decided to merge with Idinvest in order to start fundraising capital from third parties. Following 2018, Eurazeo’s strategy has always been to reduce the balance sheet investments and to increase the third-party capital investments.
Logo of the company.
Source: the company.
Internship Overview
During my time as an Investment Intern at Eurazeo from January 2023 to June 2023, I had the privilege to immerse myself in the intricacies of private equity and alternative investments. My internship included a range of responsibilities aimed at supporting Eurazeo’s investment initiatives. My department was “Direct Transactions” and during my internship, I participated actively in three different activities:
Syndication of Co-Investment Opportunities
I actively participated in the syndication process of four co-investment opportunities across various investment strategies including private debt, growth, and mid-large buyout. This involved conducting comprehensive due diligence, financial analysis, and market research to assess the viability and potential returns of each opportunity. Together, these co-investment opportunities accounted for approximately €750 million in total investment value, underscoring Eurazeo’s commitment to strategic partnerships and collaborative investment initiatives. Co-investments, theoretically speaking can be cataloged under direct transactions as SPV (Special Purpose Vehicle) are created specifically for one single transaction and you are not making the investment for the limited partners but you are making it with the LPs (Limited Partners).
Strategic SPV Structures Analysis
I was tasked with examining strategic Special Purpose Vehicle (SPV) structures solutions for potential investment opportunities. This entailed analyzing, comparing, and developing alternative fundraising structures such as Collateral Fund Obligation and Rated Feeder Fund, focusing on optimizing capital deployment and mitigating risk. The main reason why we were evaluating new financial structures was to attract a category investor that, at the time, was not willing to invest in our funds: American insurance companies. 2023 has been generically speaking a rough year for fundraising capital and for this reason, we decided to implement this kind of solution. A collateral fund obligation is a structure composed by certified debt and equity; this structure will invest in different funds (all managed by Eurazeo) and will have the advantage of using the leverage raised as certified debt to enhance the return on the investment and the Cash on Cash. Therefore, by evaluating various SPV structures, we aimed to enhance our flexibility in structuring investments and optimizing returns for our investors, by using the right amount of leverage.
Evaluation of Secondary Transactions Advisors
I had the opportunity to participate in two competitive selection processes for secondary transaction advisors, tasked with choosing the financial advisor to support us in executing a single asset continuation vehicle. The evaluation process included analyzing and comparing proposed solutions, assessing current market conditions, and evaluating alignment with Eurazeo’s investment strategy and objectives.
Furthermore, this project included evaluation and due diligence, intending to identify strategic partners capable of delivering value-added solutions and maximizing returns for our investors. Single asset continuation vehicles are specialized structures tailored for investments held within the portfolio of a current fund of the firm. These investments require divestment as limited partners seek liquidity. However, recognizing the potential upside, the firm decides to establish these vehicles.
What did I learn during this experience?
My internship at Eurazeo provided invaluable opportunities for skills and knowledge development across various areas:
- Financial Analysis: I honed my skills in financial modeling, valuation techniques, and investment analysis through hands-on experience with real-world investment opportunities.
- Due Diligence: I gained practical insights into the due diligence process, including a thorough examination of financial statements, market trends, and competitive landscapes.
- Strategic Thinking: I developed a strategic mindset by evaluating investment opportunities within the broader context of Eurazeo’s investment thesis and long-term objectives.
- Communication and Collaboration: I enhanced my communication and collaboration skills through interaction with cross-functional teams and external stakeholders, fostering effective teamwork and decision-making.
This internship therefore offered a unique opportunity to gain firsthand experience in the dynamic and fast-paced world of private equity and alternative investments. As an aspiring finance professional, this experience has equipped me with the skills, knowledge, and insights necessary to thrive in the competitive landscape of the investment industry. Moreover, it has reaffirmed my passion for finance and deepened my understanding of the critical role played by alternative investment firms in driving economic growth and value creation.
As a newcomer to the finance industry, I had not anticipated the level of intricacy and competition inherent within the environment of Eurazeo. The depth of analysis, the meticulous attention to detail, and the relentless pursuit of excellence underscored the caliber of professionals operating within the firm. Despite the initial surprise, I found myself invigorated by the intellectual rigor and spirited competition that permeated every facet of Eurazeo’s operations.
Central to my experience at Eurazeo was the discovery of a challenging yet remarkably cohesive team—a team that demanded nothing short of excellence yet fostered an environment of camaraderie and mutual support. The intensity of our collaborative efforts forged bonds that transcended professional boundaries, culminating in a shared sense of purpose and accomplishment. Indeed, within the crucible of challenging assignments and tight deadlines, I discovered that the true measure of an internship lies not merely in the tasks accomplished but, in the relationships, forged and the personal growth attained.
Long But Fulfilling Working Hours
While the demands of the internship necessitated long hours and unwavering dedication, I found solace in the gratifying pursuit of knowledge and skill refinement. On average, my workday extended until around 10:30 in the evening, with occasional instances requiring weekend office visits. Despite the rigors of the schedule, the sense of fulfilment derived from contributing to meaningful projects and engaging with industry experts mitigated the challenges posed by extended working hours.
A game-changing internship
My internship at Eurazeo stands as a transformative chapter in my professional journey, characterized by unexpected challenges, profound growth, and enduring camaraderie. Through immersion in the fast-paced realm of private equity, I have gained invaluable insights, honed essential skills, and cultivated enduring relationships that will undoubtedly shape my future endeavours. As I reflect on my time at Eurazeo, I am reminded that true growth emerges from embracing adversity, fostering meaningful connections, and steadfastly pursuing excellence—lessons that will continue to guide me on the path toward personal and professional fulfillment.
Why should I be interested in this post?
I aspire that this experience might aid other students intrigued by Private Equity in gaining deeper insights into the internal dynamics and the range of exposure one can encounter within a private equity firm. Often, when students hear about private equity, their minds jump straight to financial analysis and modeling, overlooking the broader scope. My aim is for this article to spark curiosity among students about this sector, encouraging them to explore the private equity market further.
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Useful resources
Bain Bain private Equity Report 2023
About the author
The article was written in April 2024 by Dante MARRAMIERO (ESSEC Business School, Master in Strategy and Management of International Business (SMIB), 2020-2023)