No new investments for 3i in latest quarter

Kenny Wastell
30 July 2014

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3i has failed to complete any new investments in the latest quarter, while generating £164m from divestments and refinancings, according to the GP’s most recent results.

The GP attributed its lack of new investments to competitive pricing in the private equity market. Not all GPs were discouraged by rising multiples though: in Q2 the European buyout market reached its highest level in 10 quarters, with UK buyout activity also on the rise.

The firm's portfolio companies have, however, been active on the acquisitions front, with UK-based environmental consultancy SLR Management acquiring Cape Town-based CCA Environmental and Element Materials bolting on Cincinnati-based Accutek Testing Laboratory.

3i recently received returns of £21m when portfolio company Amor completed a €103.1m refinancing. The GP also agreed the sale of its stake in Hilite, a Germany-based global supplier of engine and transmission components, for €473m.

In addition to the cash generated by 3i throughout the quarter, the firm also agreed further sales worth £245m. Though these were signed, they were not completed in the quarter. 3i also acquired a further £27m stake in its Eurofund V vehicle from third party investors.