Debt Management

3i Debt Management (“3iDM”) is one of Europe’s leading debt management businesses, managing a wide range of fund vehicles on behalf of third party investors.

As at 30 September 2011 3iDM manages in excess of $5.1bn in third party AUM across 9 funds including Arbitrage CLO, Mezzanine, Credit Opportunities, Managed Account and Private Equity Fund of Funds. In addition our second Private Equity Fund of Funds, Vintage II, had its first close in November 2011

3iDM comprises an experienced team of over 30 professionals with a successful track record focused on careful asset selection and dynamic portfolio management of a range of investments across the credit spectrum

3iDM has a core objective of delivering consistent out-performance to our investors and through a combination of organic and acquisition-based growth, building a global alternative asset management business, supported by 3i Group’s capacity to seed new funds and finance acquisitions 

Four core strategies underpin our unique position in the market: 

• Maintaining and further developing strong relationships in non-investment grade debt markets
• Ensuring a disciplined, credit-focused asset selection and investment strategy across our fund platform
• Providing active portfolio management via a team of experienced market professionals, and
• Delivering on our commitment to maintaining investor integrity

The business specialises in the management of funds raised to invest in the debt of LBO assets, providing investment advisory services in return for fees.

We adopt a disciplined, credit-focused investment strategy and our dedicated team ensures a clear and consistent investment process, including:

• Asset Procurement – strong primary market syndication relationships / well established private equity sponsor relationships
• Deal Screening – initial meeting / high level of rejection but high level of delivery on transactions pursued
• In depth Credit Analysis – 2/3 weeks of intensive due diligence
• Credit approval – detailed credit application / investment committee
• Ongoing Portfolio Monitoring – track deal performance / trade opportunities

Our current activity is focussed on Europe, where 3i enjoys established relationships.  Moving forwards we are looking to expand our activity to other geographies and to launch new funds.