Sep 24, 2020, 9:02 AM ETInterview, Fireside Chat

Virginie Morgon, CEO of Eurazeo

Eurasio's pandemic response followed a three-phase approach:
- Phase 1 (Early 2020): Rapid prioritization of critical issues within four to five weeks as the virus impacted China, Europe, and the U.S.
- Phase 2 (Recovery): Focus on stabilizing workforce safety, company operations, and decision-making confidence once initial shocks subsided.
- Phase 3 (Mid-May onwards): Return to operational normalcy marked by increased deal flow and aggressive private equity reinvestment, particularly in Europe.

Healthcare Expansion: Eurasio is actively building new healthcare portfolios, specifically targeting health technology.
Supply Chain Resilience: A major trend involves the relocalization of pharmaceutical production (e.g., APIs) in continental Europe (Germany, France) to mitigate reliance on Chinese and Indian suppliers.
Digital Payments: Significant interest remains in the digitalization of payment value chains, including wallet security, authentication, and authorization software.

10-Year Strategy: Launch of the "O Plus" program covering 2020–2030 with ambitions extending beyond 2040.
Social Welfare: Commitment to extending social welfare and value sharing to every employee and talent across all portfolio companies.
Diversity Goals: Increased focus on gender, social, and racial parenting diversity.
Carbon Neutrality: First private equity firm to officially commit to net-zero carbon emissions by 2040, applying to Eurasio itself and its entire portfolio of existing and future companies.

Conviction Over Consensus: The Montclair deal (2011) served as a key learning case for trusting internal judgment and team confidence despite external skepticism regarding the high acquisition price.
Investor Requirements: Successful investors must possess both high IQ (analytical/structural) and high EQ (emotional intelligence) to understand management dynamics and provide authentic support.
Team Assessment: Younger professionals are evaluated on their ability to balance intelligent analysis with the emotional capacity to support portfolio company leadership without expressing mere discomfort.

S&P 500 Forecast: Morgan predicts the S&P 500 will be higher one year from now.
Investment Mindset: Advises against extreme emotional reactions, noting that market conditions are rarely as dire as feared or as lucrative as hoped.
Industry Nature: Emphasizes that private equity is a "marathon" requiring long-term thinking rather than a short-term sprint.