Eurazeo

-5.21%

1) The risk of over-diversification in target markets or industries. Eurazeo’s strategy to invest in a large number of companies in a wide variety of sectors could lead to not being able to adequately analyze all investments properly, which could lead to bad decisions and ultimately significant losses.

2) The risk of inadequate information regarding target investments. Given the number of investments Eurazeo makes in a short period of time, it can be difficult for the team to get a comprehensive understanding of each investment. This could lead to potential investments that are overpriced or not offering the returns that were initially promised.

3) The risk of repeating past mistakes. Over-extending the group’s reach, risk management processes or strategies can be difficult to maintain or duplicate in each investment. They may risk purchasing shares in companies that have already performed poorly in a previous business, or engaging in a strategy that has already produced poor returns.

4) The risk of developing a concentration on certain sectors or investments. Eurazeo’s strategy of investing in a wide range of companies and sectors makes it difficult to maintain a proper spread of investments. If the group begins to focus too much of its investments in one sector or company, they can potentially be vulnerable to changes in the market.

5) The risk of not selecting the right investments. Eurazeo could invest in companies with poor management, corporate governance practices, or non-diversified business models, leading to poor returns or losses. Poor selection could also lead to non-performing investments, or placing too much risk on one investment.

6) The risk of not analyzing competitive conditions in regards to investments. Eurazeo SE may fail to consider the competitive market conditions which could lead to investing in businesses where there is already strong existing competition, leading to lower returns.

7) The risk of doing deals that do not align with the group’s strategy. Eurazeo's team may act on individual opportunities without making sure they are in line with the group's overall strategies and vision, leading to missed opportunities or wasting resources on lost investments.