3i continues exit run

The group's exit profile looks to be in a strong position already for the next quarter, as today's results did not include the recently announced divestments of Xelia, Trescal and Hyperion, which have all completed and generated proceeds of £142m, £61m and £44m respectively, totalling £247m.

In the company's conference call this morning, the group's finance director Julia Wilson confirmed that 3i is "unlikely" to raise another European fund. 3i has not made any new investments in the US or Europe since its acquisition of German packaging company Geka in February this year.

However, Wilson asserted that the group is seeing interesting opportunities in the US, where it is looking to invest in companies with a European angle, and in its sweet spot of German and Benelux industrial companies. According to a company spokesperson, 3i will invest from its balance sheet and has signed up two co-investors for European deals.

Wilson estimated there are between 90-100 companies still in the private equity portfolio and that a number of assets are currently in sales processes or being prepared for sale. Wilson explained that some assets are referred to as "keepers" as they generate long term value for the group. Despite such a large private equity portfolio, 50% of its value lies in its top 10 investments.

3i's main focus for the rest of 2013 is on reducing costs rather than increasing capital profits, and growing other areas of business, namely its debt management and infrastructure arms. Indeed, the debt division has doubled its assets under management over the last year while its infrastructure arm acquired Barclays' European infrastructure fund management businesses in May, adding around £780m in assets to the balance sheet.

The interim management results for the quarter reported a 5% uplift in the group's NAV, reaching 326p per share.

The company has reduced its gross debt to £913m, down from £1.1bn in March 2013, following a £164m repayment of its 2014 revolving credit facility. Net debt decreased to £227m, down from £335m in March. According to Wilson, 3i's remaining debt is made up of three bonds, two of which are very long term and there are no immediate places to make further significant reductions, but its debt position will be kept under review.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• GPs
• United Kingdom
• 3i