Interim Management Statement

27 Jan 2011

 

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 which, as usual, is unaudited, relates to the three month period from 30 September 2010 to 31 December 2010.

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

"There was an encouraging increase in activity in our markets during the period as we made some high quality new investments and had significant realisations from the portfolio at good uplifts."

1. Investment

3i invested £183 million during the quarter, bringing the total investment in the nine months to 31 December 2010 to £510 million. Investment for the equivalent nine month period last year was £249 million. In addition, £158 million (2009: £34 million) was invested in the quarter on behalf of co-investment funds managed by 3i.

Investment by business line was as follows:

Investment (£m)

 

Six months ended

Three months ended

Nine months to

Nine months to

30 September

31 December

31 December

31 December

2010

2010

2010 (total)

2009 (total)

Private equity

 

Buyouts

306

166

472

162

 

Growth Capital

21

2

23

68

Infrastructure

-

15

15

2

Non-core

-

-

-

17

Total

327

183

510

249

2. Realisations

Realisations were £105 million for the third quarter, bringing realisations to £398 million for the nine months to 31 December 2010 (2009: £777 million). Total proceeds do not include the expected sales proceeds from the sales of MWM and Hyva, which together will be around £350 million.

Realisations by business line were as follows:

Realisations (£m)

 

Six months ended

Three months ended

Nine months to

Nine months to

30 September

31 December

31 December

31 December

2010

2010

2010 (total)

2009 (total)

Private equity

 

Buyouts

169

39

208

124

 

Growth Capital

68

58

126

428

Infrastructure

1

-

1

45

Non-core

55

8

63

180

Total

293

105

398

777

3. Acquisition of Mizuho Investment Management

In September, 3i announced that it had reached agreement with Mizuho Corporate Bank, Ltd. to acquire Mizuho Investment Management (UK) Limited ("MIM"). MIM is one of Europe's leading debt management businesses with assets under management of £3.7 billion. The acquisition is expected to complete shortly.

4. Cashflow and balance sheet

The Group had cash, cash deposits and undrawn committed facilities of £1.91 billion as at 31 December 2010 (30 September 2010: £2.13 billion). Net cash investment in the three month period was £69 million and net debt increased by £115 million to £467 million (30 September 2010: £352 million). 

For information please contact:

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

Kathryn van der Kroft
3i Press Office
020 7975 3573

Maitland
Suzanne Bartch

020 7379 5151

This statement aims to give an indication of material events and transactions that have taken place during the period from 30 September 2010 to 31 December 2010 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.