Buyouts Portfolio

3i’s leadership of the mid-market is recognised through the industry awards we win and the market-leading returns we achieve.

Investing in the best opportunities
3i Buyouts invests in companies with an enterprise value of up to around €1bn, supporting ambitious European businesses and investing on a highly selective basis in Asia. Through strong relationships, local knowledge and the sector insight of our investment professionals, we take a focused view of the market and select the best 12-15 opportunities a year in our eight chosen sectors.

Our partnerships with the businesses in our portfolio deliver exceptional results. In the year to December 2007, 3i Buyouts invested €1.8bn in 14 companies and realised €3.2bn, generating an overall money multiple of 3.5x.

3i Buyouts invests on its own behalf and for the partners in our funds. We are currently investing our €5bn fund, Eurofund V.

Applying 3i’s networks and knowledge
The outstanding performance achieved by our portfolio companies illustrates the deep understanding we have of our chosen sectors and our extensive network of knowledge
and relationships.

Strong international connections both within 3i and across our wider network make it easier for our portfolio companies to enter new markets, launch fresh products and deliver rapid growth.

Through our Business Leaders Network, we nurture relationships with some of the world’s most respected industrialists and entrepreneurs. They work with us on a highly flexible basis, advising the companies in which we invest, and sometimes joining them in board-level roles.

A dedicated in-house team manages the relationships we have with the world’s leading banks. This helps the companies in which we invest agree fair and reliable credit
facilities, even at the toughest points in the economic cycle.

We aim to stimulate thinking between the companies we partner through a series of seminars and events, and by introducing experts or individuals with relevant experience. By helping them to share issues and solutions, and gain deeper insight into the challenges which impact their performance, we bring the richness of our network to life
for their benefit.

As a result, the companies in our portfolio are businesses that achieve distinctive market positions and deliver market leading results.

"Driven by our ambition to see every company reach its full potential, we provide management teams with challenge and support – not simply highlighting new possibilities and goals but helping to create a roadmap to achieve them."

A hands-on approach to value creation

At the heart of 3i’s approach is the desire to back great management teams with great business plans.

As a hands-on investor, we continually seek new ways to work with the businesses we partner. This takes us far beyond agreeing a strategy and setting targets. Our investment professionals work closely with the board of
portfolio companies across a wide range of performance driversfrom organisational structure and corporate governance to the management of working capital and the deployment of the sales team.

When issues arise, the leaders of our portfolio companies have a vast array of resources at their disposal. Our in-house expertise provides practical advice on a wide range of business solutions, while our network of contacts means that we always know the right person to call.

Driven by our ambition to see every company reach its full potential, we provide management teams with challenge and support – not simply highlighting new possibilities and goals but helping to create a roadmap to achieve them.

In this way, we work with managers to build companies that strive for excellence at all levels, delivering excellent results and establishing cornerstones which will underpin an enduring ability to generate outstanding performance long after 3i’s period of ownership.

October 2008