Feb 6 (Reuters) - French private equity group Eurazeo has announced the its merger with middle market focused French private equity house Idinvest.
The deal values Idinvest at around €310m, with Eurazeo taking a 70% stake in the firm and Idinvest’s management team retaining around 30%. Euronext Paris-listed IDI has agreed to sell its 51% stake in Idinvest as part of the deal.
The merger creates a group with over €15bn of assets under management, and follows Eurazeo’s recent acquisition of 30% of US private equity outfit Rhone Group.
The deal comes at a time of renewed talk of consolidation within the private equity industry and increasing focus on the private debt sector, where Idinvest is also prominent.
A source close to the deal said that many large institutional investors such as insurance companies were looking to private debt having reached full allocations for private equity in many cases.
Idinvest’s venture and growth capital teams also offer a new line of business for Eurazeo, which has typically focused on more mature companies. Idinvest has made early-stage investments in technology and digital companies including Deezer, Criteo and Talend.
Eurazeo plans to eventually buy the remaining 30% of Idinvest it doesn’t already own, however it noted that Idinvest will retain total management autonomy. (Editing by Christopher Mangham)