Interim Management Statement

08 Jul 2009

 

3i Group plc ("3i"), the international private equity company, today issues its Interim Management Statement in accordance with FSA Disclosure and Transparency Rule 4.3. This statement relates to the three month period from 1 April 2009 to 30 June 2009.

Michael Queen, 3i's Chief Executive, said:

"Our focus in the first quarter was on strengthening the balance sheet. A substantial increase in liquidity and the reduction in net debt provide further resilience in what remains a fragile environment. We have also significantly enhanced our ability to take full advantage of improved conditions as they emerge."

He added:

"Given our view of the general economic outlook we will continue to take a cautious approach to new investment, maintain our focus on the portfolio and ensure that we build upon our strong positions in the mid-market buyout, growth capital and infrastructure markets."

1. Balance sheet

Improving 3i's balance sheet strength was a key priority for the period. The successful rights issue, the receipt of the proceeds from 3i QPE, and other operational cash in-flow resulted in a reduction of net debt to £961 million at 30 June 2009 from £1,912 million at 31 March 2009. 

2. Realisations and Investment

Realisation proceeds received by 3i (excluding funds managed or advised by 3i) were £163 million (2008: £301 million). Realisations for the three month period were achieved at a modest uplift to 31 March 2009 valuations. 

Realisations exceeded new investment by £87 million for the three months to 30 June 2009. There were no investments in new portfolio companies in the period.

Investment and realisations for the quarter by business line were as follows:

Investment £m
 
3 months ended
30 June 2009
3 months ended
30 June 2008
Buyouts 37 251
Growth Capital 28 160
Infrastructure 2 -
Non-core 9 17
Total 76 428

Note: Non-core includes the Venture portfolio and SMI portfolio.

Realisation proceeds by business line were as follows:
 

Realisations £m
 
3 months ended
30 June 2009
3 months ended
30 June 2008
Buyouts 31 169
Growth Capital 68 96
Infrastructure - 5
Non-core 64 31
Total 163 301

Note: Non-core includes the Venture portfolio and SMI portfolio. 

3. Returns

Results for the year to 31 March 2009 were announced on 8 May 2009. The next detailed valuation exercise of the investment portfolio is for the half year results to 30 September 2009.

For information please contact:

Patrick Dunne
Group Communications Director, 3i Group plc
020 7975 3566

Philip Gawith
Maitland
020 7379 5151

This statement aims to give an indication of material events and transactions that have taken place during the period from 1 April 2009 to 30 June 2009 and their impact on the financial position of 3i Group plc. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within 3i's portfolio.