Intouch Autumn/Winter 2007-08

It has been an extraordinary summer for the private equity industry. A buoyant start which saw high levels of activity and the listing of several PE firms was abruptly punctuated by the dislocation in financial markets in July. Political challenge added a further fascinating dimension throughout the summer in many countries.

As the industry moves to the next stage of its development, like any other industry, firms will grow in different ways. Some like 3i, will be global, have substantial scale, invest in a number of asset classes and be more 'institutional’ in nature. Others are likely to remain in one asset class or single location and differentiate themselves that way.

3i's financial strength, brand and resources have enabled us to continue to broaden our business this year. Two new public companies have emerged as a result. One, 3i Infrastructure Ltd, is now a FTSE250 company. The other, 3i Quoted Private Equity Ltd, is taking a distinctive approach to investing in smaller public companies.



At the same time, we have continued to develop our business in Asia and in the US. Our New York office has made its first investments. We have established an infrastructure fund in India, and our growth capital portfolios across Asia continue to grow.

Key to our success is the absolute focus on investment quality and the recognition that the teams we back are fundamental to our success.

As I travel around the world and meet the people that we back I am greatly encouraged, not just by their talent and ideas, but also by their openness to take advantage of the many things that 3i does to help fuel their growth.

Whether there are longer term consequences arising from this summer's dislocation in leveraged finance markets or not, 3i is well placed.

The following pages of Intouch show this. They also show that we are firmly set on continuing to build our international presence, that we are in a strong position to deal with today’s challenges – and also to take the inevitable opportunities that will accompany them.