Eurazeo / 2019 Universal Registration Document

Risk management Risk factors

Disputeswith investment partners 4.2.2.5

MODERATE Risk that one orseveral investment partners bring proceedings againstEurazeofora managementerror.

Pursuant to the rules of differentfunds, Eurazeo subsidiaries in charge of fundmanagementmustmeet a certain number of obligationsto investment partners. As a result, it is possible thatsomeinvestment partners believe that somemanagementacts do not comply with Eurazeo’sobligations and/or are not in the best interestof investors, anddecideto bring legal proceedings. These management acts can includeactivitiessuchas: fundmarketing,compliance management, monitoring andpromotingthe portfolio, investor information, investment or divestment decisions,etc.To minimizethis risk,Eurazeoimplementsa complianceprogram, internalcontrolrulesandclear operational governance in its management companies. Italso checksthequality ofthewordingof fundrules. Potentialeffects Disputeswith investment partners, likely to resultin the payment • of compensation Change in Eurazeo’s reputation, limiting its ability to fundraise • in the future Fundmanagementtransferredto another management firm • (extreme example) Examples of risk mitigation measures Internal controlrules • Complianceprogram • Drafting qualityof fundrules •

Change in regulations 4.2.2.6

MODERATE Risk that Eurazeo strategy and activities are negatively affected by legislative and regulatorychanges,particularly intermsof taxation. Privateequitytransactions,for example, could lose their appeal in the event of very unfavorablechanges in the taxenvironment. Increased taxation on long-term capital gains or the deductibility of l an interest are likely to limit future net capital gains. Generallyspeaking, increases in corporate taxation in the countries wherethe investments operate is liable to alter the performance of subsidiaries in the countries concerned. Potentialeffects Negativeimpacton futurenet capital gains and ultimatelyNAV • Negativeimpacton portfoliocompanies’result • Examples of risk mitigation measures Geographic diversification of the portfolio •

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