Foundation
The MacMillan Committee Report of 1931 identified a "MacMillan Gap"; a chronic shortage of long-term investment capital for small and medium-sized businesses. Its recommendation was the formation of a company "to devote itself particularly to these smaller industrial and commercial issues". This company would, in addition to its ordinary capital, issue preference share capital backed by the debentures or shares of the companies which it financed and therefore serve as an intermediary between small investors and small and medium-sized industrial borrowers.
3i's roots were laid through the establishment of ICFC (Industrial and Commercial Financial Corporation) and the FCI (Finance Corporation for Industry) in 1945 under the UK's labour government led by Clement Atlee following the second world war.
The ICFC was established to serve the small and medium sized business sector through the provision of long term and permanent capital (typically investments of £5,000-£200,000). It was exclusively funded by the major clearing banks and the Bank of England, who collectively agreed to provide share and loan capital up to £45m led by Lord William Piercy as its first Chairman. In the same year, its sister organisation, the FCI was founded with £25m of capital and the ability to borrow a further £100m. Share capital was subscribed by insurance companies, investment trust companies and the Bank of England with a remit was to provide capital (principally in the form of debt) in larger amounts than the ICFC to facilitate the rationalisation and restructuring of key sectors of British industry and for post-war re-equipment.
The 1970s saw the merger of the FCI and ICFC forming Finance for Industry (FFI), which during the 1980s was rebranded to "Investors in Industry" and later in July 1994, at the time of its London Stock Exchange flotation and entry into the FTSE100, became "3i".
Over Sixty Years of EvolutionPioneering Spirit: A leader in private equity for over 60 years
Corporate History
Starting with £15m capital in 1945, 3i is today a global private equity firm, with €8bn of assets under management focusing on growth capital, mid-market buyouts and infrastructure
| 2009 | Michael Queen appointed Chief Executive of 3i |
| 2008 | 3i successfully raised $1.2bn India Infrastructure Fund. Julia Wilson appointed Finance Director |
| 2007 | 3i total return of capital reaches £2bn. 3i realisations exceed £2.4bn. 3i raises £700m infrastructure fund |
| 2006 | 3i launches QPE team applying private quity expertise to public markets. 3i closes Eurofund V at €5bn |
| 2004 | Philip Yea is appointed CEO and later Simon Ball is appointed Finance Director |
| 2001 | 3i transforms organisation along global business lines: Buyouts, Growth Capital and Venture Capital |
| 1994 | 3i successfully floats on the London Stock Exchange at a market capitalisation of £1.5bn; subsequently entering the FTSE 100 |
| 1983 | The 3i brand is launched under the leadership of CEO Jon Foulds |
| 1945 | 3i roots laid through the FCI and ICFC, led by Lord William Piercy as Chairman, to provide capital to growing independent businesses |
Landmark Deals
Over its 60 years, 3i has invested over €32bn to assist the growth of businesses worldwide.
| 2009 | 3i successfully realises investment in ABX |
| 2008 | 3i agrees €730m buyout of Global Garden Products |
| 2007 | 3i invests for a minority stake in Norman Fosters' iconic architecture and design firm Foster + Partners |
| 2006 | 3i-backed SR Technics is acquired for €1billion to UAE consortium |
| 2005 | 3i divests the world’s largest foreign exchange specialist, Travelex, in a £1bn transaction: generating a 10 times return on its investment |
| 2004 | Using its unique market knowledge and access, 3i consolidates four businesses and sells its stake in pan-European directories business, YBR |
| 2003 | 3i identifies CSR’s potential early and helped drive internationalisation of the business, preparing it for its status as a $4bn company at its peak |
| 2002 | 3i sells Go Fly, low cost airline, to easyJet for £374m |
| 2001 | 3i leads JP¥ 15bn (£73/€107m) MBO of Vantec, the ex-Nissan Motors subsidiary, the first ever western style MBO in Japan |
| 1970 | 3i invests to create an £80m business in Bond Helicopters Ltd and following its sale to Brokers, the world’s largest civil helicopter firm |
| 1967 | 3i makes investment in 1967 via a £90,000 commitment to Oxford Instruments, later realising £4.3m |
Expanding its Borders
From its UK roots, 3i today is a global private equity firm in 12 countries across Europe, Asia and North America
| 2008 | 3i completes first buyout from Singapore in leading medical company,, building on its growth capital investments in the region. |
| 2007 | 3i opens new office in New York, US focused on growth capital and infrastructure investments |
| 2006 | 3i opens new offices in Beijing, China and expands further via partnerships in Japan, CEE, Russia, Korea and the Gulf countries |
| 2005 | 3i opens new offices in Mumbai, India with experienced local team |
| 2001 | 3i completes its Nordic expansion via acquisition of SFK, Finland and Atle, Sweden and operations in Denmark |
| 1997 | 3i establishes its Asia network with a local team on the ground and the launch of a Singapore office |
| 1984 | Having established its UK presence, 3i adds offices in Germany and France, laying the foundations for its international network in the decades to follow |
