3i announces significant move in debt management with agreement to acquire MIM

27 Sep 2010

 

3i Group plc ("3i" or "the Group") today announces that it has reached agreement with Mizuho Corporate Bank, Ltd. ("MHCB") to acquire Mizuho Investment Management (UK) Limited ("MIM"). MIM is one of Europe's leading debt management businesses with assets under management ("AuM") of £3.7 billion.

The acquisition consideration is £18.3 million and is subject to MIM investor consent and 3i obtaining regulatory approval from the UK FSA.

MIM was established by MHCB in 2005 as its 100% owned asset management subsidiary. MIM specialises in the management of funds raised to invest in senior and subordinated corporate debt, providing investment advisory services in return for fees. MIM has a high quality loan portfolio and an established fundraising track record with a diverse investor base. MIM has built a strong team of 28 employees, has raised eight funds, totalling over £4.0 billion, since 2005 and had £3.7 billion AuM at 31 March 2010.

Today's acquisition enhances 3i's capabilities in the debt markets and builds upon the Group's existing private equity and infrastructure businesses. 3i believes that the depth of its network, sector insight and relationships with investors and banks from its existing businesses will add considerable value to MIM.

3i's existing debt management activities will be merged with MIM to form a distinct business line, 3i Debt Management, with a total AuM of c£4.0 billion. Jeremy Ghose, CEO of MIM, will become Managing Partner and CEO of 3i Debt Management and will join 3i's leadership team.

Michael Queen, 3i Group CEO, commented: "Today's acquisition builds upon our debt management capabilities and reinforces our strategy of growing 3i in areas consistent with our investment expertise. MIM is a leading player in the European loan market and is highly complementary to our existing activities. There is an excellent cultural fit with 3i and the expanded business will create an enhanced debt platform to grow profitably into the future."

For further information, please contact:

Patrick Dunne
3i Group Communications Director
Tel:  020 7975 3566

Philip Gawith
Maitland
Tel:  020 7379 5151

About 3i
3i is an international investor focused on Private Equity and Infrastructure and investing in Europe, Asia and North America. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio, shareholders and fund investors. www.3i.com

About Mizuho Investment Management ("MIM")
MIM was established by MHCB in 2005 as its 100% owned asset management subsidiary. MIM specialises in the management of corporate debt funds invested mainly in senior and subordinated loans. MIM has built a strong team of 28 employees and has raised over £4.0 billion since 2005 in 8 funds. The senior management team collectively has over 110 years of relevant market experience, including Jeremy Ghose who has been CEO since its establishment and has over 23 years of experience gained at MIM, MHCB and HSBC, and have delivered a strong performance in turbulent markets.