3i Debt Management borne out of MIM deal

Kimberly Romaine
16 February 2011

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3i has reinforced itself as a diversified asset manager with today’s introduction of 3i Debt Management (3iDM).

The division comes as parent 3i completes the acquisition of Mizuho Investment Management (MIM), initially announced last year.

Including debt as part of a GP's remit is all the rage: just last month, buyout house EQT raised €350m for its first credit fund. But the timing may not be great for the house as just today, weeks before the end of its investment period, Oaktree Capital Management has decided to give a third of its $10bn warchest back to its LPs, citing a lack of investable opportunities.

3i paid £18.3m for MIM, and 3iDM now has £4bn under management. Andrew Golding, 3i banking partner, becomes managing director of the new entity, while MIM's chief, Jeremy Ghose, becomes managing partner and CEO of 3iDM.

Last summer, 3i head Michael Queen stated that the debt management industry would undergo consolidation across Europe, and said that it would be part of 3i's strategy going forward. At the same time, 3i indicated that £2.1bn of cash and liquid assets available to the firm from the MIM acquisition could also be used to acquire local private equity groups in countries where 3i is not already present.