IDI: Private equity access with shareholder focus
IDI: Private equity access with shareholder focusEARNINGS/SALES RELEASES
In a challenging 2024, IDI remained selective yet resilient, prioritising quality over volume with eight strategic deals, including stakes in Capexsto and TTK. While this measured approach weighed on net income, it reflected IDI’s disciplined investment strategy—waiting for the right opportunities, not just any. With €346m ready to deploy, IDI remained poised for action. A €1.4 extraordinary dividend reinforced its unwavering commitment to shareholder returns. Steady, strategic, and built for long-term value—IDI is the gateway to private equity with a yield that delivers.
FACT
IDI ended the year with a +2.4% yoy increase in NAV per share, reaching €91.52 (post-dividend), narrowing the discount to NAV to 24%.
The group maintained a strong investment capacity of €346M (net of debt), representing 35% of its NAV.
In 2024, IDI completed eight transactions, including two new investments—a majority stake in Capexsto and a minority stake in TTK—as well as six bolt-on acquisitions.
In line with a quieter investment pace, investment income dropped to €35m (vs. €89.5m in 2023), weighing on net income (€19.6m vs. €70.8m last year).
Despite a modest year, IDI remains committed to shareholder returns, proposing an extraordinary dividend of €1.4 per share, in addition to an ordinary dividend of €2.8, bringing the total payout to €4.2 per share.
ANALYSIS
IDI’s NAV: Resilience in motion
After a remarkable +11.4% NAV surge in 2023, IDI once again proved that it is built to last. In 2024, despite a quieter market, NAV per share still edged up +2.42% to €91.52 (post-dividend). At this level, IDI trades at a 24% discount, a sharp improvement from 45% in 2021 and 38% just a year ago. While still significant, this narrowing underscores IDI’s growing attractiveness relative to its peers—Wendel, GBL, and Eurazeo—all of which continue to trade at discounts exceeding 30%. The market is taking notice—IDI’s resilience, performance, and yield strategy are closing the gap. In any case, a 24% discount still reflects untapped intrinsic value waiting to be realised.
Strategic moves, long-term vision
In 2024, IDI completed just eight transactions—a sharp contrast to 21 last year—prioritising quality over quantity. Among them, TTK stands out, leveraging its cutting-edge leak detection technology to tap into the booming data centre market, where reliability is paramount and ESG investment momentum is accelerating. Likewise, IDI took a majority stake in Capexsto, a leader in high-performance elastomer solutions, further strengthening its portfolio with industrial innovation.
Beyond these cornerstone deals, six bolt-on acquisitions reinforced IDI’s active shareholder approach, fuelling external growth across its portfolio. While no disposals were made, this measured approach reflects IDI’s discipline—focusing on high-quality investments rather than forced exits in a market where the bid-ask spread remains too wide.
A reliable yield stock
Investment income dropped to €35m from €89.5m in 2023, and net income softened to €19.6m from €70.8m—yet IDI remains unwavering in its commitment to shareholder value. A €4.20 dividend per share, including a €2.80 ordinary payout and a €1.40 special dividend, underscores IDI’s confidence, discipline, and ability to deliver even in softer years.
IDI is not just another private equity player—it is a yield stock through cycles, delivering an average annual return of 15.73% since IPO. Over 34 years, this translates into a staggering 134x multiple. Consistency, resilience, and shareholder-first thinking—that’s the IDI formula.
Strong start to 2025
The year is already off to a bold start. IDI’s highly successful exit from CDS/S4BT delivered a 46% IRR and a 6.5x multiple, proving once again that patience and strategic timing pay off. But IDI didn’t just cash out—it reinvested as a minority shareholder alongside founder and CEO Ziad Minkara, reinforcing its long-term conviction in high-quality businesses.
A prime balance sheet, no rush to deploy
Consolidated shareholders’ equity stood at €696M, down from €732M in 2023, primarily due to substantial dividend distributions—a total of €5 per share in 2024, including the €2.50 interim dividend paid in December. As of March 21, following the sale of S4BT/CDS Group, IDI’s net investment capacity—including Financière Bagatelle—stands at €346.7M. With this strong financial position, IDI has the liquidity and flexibility to act strategically, not react hastily—a stark contrast to traditional PE funds under pressure to deploy capital quickly.
The bottom line: Long-term vision
While 2024 was a year of recalibration, IDI remains one of the most compelling yield investments in the market. Its strength lies in a multi-faceted investment approach that spans the private equity spectrum, combining direct investments in small and mid-cap companies, third-party capital deployment through idiCo, and a unique proposition for retail investors seeking private equity exposure without the usual constraints.
With a robust balance sheet, significant investment firepower, and the flexibility to act at the right time, IDI continues to distinguish itself as a patient, disciplined investor.
IMPACT
We will integrate the FY24 figures into our model and carry forward our estimates to 2027. Despite a quieter investment year, IDI’s significant dry powder and careful, strategic approach reinforce our positive outlook.
Groupe IDI activity is divided in two areas: through its subsidiaries, EURIDI and Marco Polo Investissements, Co. is engaged in management buy-out/buy-in and growth capital investments in French small-mid caps valued between Euro7,000,000 and Euro75,000,000 also, through its subsidiary, IDI Mezzanine, is engaged in mezzanine financing. Also Co. is active in the purchase of secondary market portfolio.
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