I2 Infrastructure Investors Fund reaches £450m following £150m investment by 3i's infrastructure team
3i, a world leader in private equity and venture capital, today announces an investment of £150 million in I2, a joint venture fund initially established by Barclays Private Equity and SG Corporate & Investment Banking.
Following 3i''s investment, the Fund has now reached £450 million, making it the largest equity fund within the secondary PFI market.
The Fund was established in November 2003 and has built up a portfolio of 29 operating infrastructure projects in the health, education, transport and MOD sectors with an investment value of £150 million. The fund offers investors access to project companies that benefit from long term government backed low volatility income streams.
3i is an active investor in the infrastructure market. Recent activity includes Keolis, a £365m deal in bus and rail transport, and Freightliner, a £92m deal in rail freight transportation.
Cressida Hogg, Director, 3i, said: "Investing in I2 provides a great stepping stone for 3i to increase its participation in a growing portfolio of PFI assets. 3i will benefit from I2''s first mover advantage and extensive investment pipeline."
Adrian Montague, Chairman of I2, said: "This is a very important milestone for I2 as we have now completed our recruitment, having recently employed John McDonagh, Victoria Inness and Andy Clapp to complement the existing team established under Michael Ryan. We have three first class sponsors all with proven track records in this area and we have simultaneously acquired a significant and diversified portfolio of good quality assets with an existing pipeline of further potential acquisitions. The development of the secondary PFI market will bring much needed liquidity to participants within the PFI business and allow businesses to grow and establish the critical mass necessary to be a long term, flexible and proactive partner with the public sector".
Michael Ryan, Managing Director I2, commented: "I am delighted that, with the introduction of 3i, the Fund has the support of 3 leading players in the infrastructure market. The Fund has now reached £450 million and has an investor group which will make a considerable contribution to its success."
Notes to editors
3i is a FTSE100 company and world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia.
Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. It underpins the value that we deliver to our portfolio and to our shareholders.
In the year to March 31, 2005, 3i invested £962m, including co-investment funds. 3i''s Buyouts business operates primarily on a pan European basis, investing in businesses with a transaction value of up to €1 billion. In the year to March 31, 2005, Buyouts invested £532m. During the same period, its Growth Capital business, which focuses on high growth companies expanding organically or through acquisition, invested £274m across Europe and Asia. 3i''s Venture Capital business invested £144m in the year to March 31, 2005. The venture capital business invests in early stage technology companies throughout Europe and US.