Blackstone agrees to provide €400m for Groupe Premium’s recap

• The completion of the transaction would value Groupe Premium at €1.15bn
• Eurazeo and its affiliates would realise a 3.3x cash-on-cash multiple at the completion of the deal
• Blackstone will also acquire a limited minority stake in Groupe Premium

Blackstone has signed a strategic agreement with Eurazeo to provide €400 million equity financing to Groupe Premium, a wealth management company in France.

Groupe Premium is based in Paris. The company manages €8.5 billion assets and posted a turnover of €188 million in 2022, over 80 percent growth compared to 2021. It aims for a level of activity of €263 million in 2023.

The completion of the transaction would value Groupe Premium at €1.15 billion.

Eurazeo and its affiliates would realise a 3.3x cash-on-cash multiple at the completion of the deal, including  around €185 million of cash proceeds (of which around €65 million for Eurazeo balance sheet. The remainder of around €135 million will be reinvested in the operation.

Barings will renew its support to the company with a new debt package of €300 million.

Blackstone will also acquire a limited minority stake in Groupe Premium.

“Blackstone’s financing equity will enable Groupe Premium to further accelerate its sustained growth trajectory by providing the company with enhanced resources,” said Pierre Meignen, MD at Eurazeo. “This transaction is a strong marker of the Group’s strategic positioning and the exceptional quality of the execution of the strategy by Olivier Farouz and his team. ”

Eurazeo will retain control of Groupe Premium as part of the trasnaction.

Montefiore Investment initially invested in Groupe Premium in 2018 and handed over control to Eurazeo in July 2021.

Eurazeo supported Groupe Premium by providing human and financial resources for its structuration and development, via geographical expansion of its network of independent agents in France, according to a release.

It also enabled the creation of the company’s wealth management consulting division, and has made 8 acquisitions over the past two years, the release said. Groupe Premium’s sales have been multiplied by ten over these last five years.

Eurazeo is a global investment group, with a diversified portfolio of €35.2 billion in assets under management. The firm is based in Paris, France.

Montefiore Investment is a private equity firm dedicated to service SMEs and mid-market companies. The firm, based in Paris and Milan, currently manages €4 billion of equity and invests ticket sizes ranging from €20 million to €200 million in companies.

Blackstone is an alternative asset manager with $1 trillion in assets under management. The firm is based in New York.