Interim Management Statement

24 Jan 2008

 

3i Group plc ("3i"), a world leader in private equity and venture capital, today issues its Interim Management Statement in accordance with FSA Disclosure and Transparency Rule 4.3. This statement relates to the three month period from 30 September 2007 to 31 December 2007.

Philip Yea, 3i's Chief Executive, said: 

"Our mid-market position and the depth of our international network have allowed us to continue to source good investment opportunities notwithstanding the more difficult economic outlook. As expected, realisations have slowed since the first quarter of this financial year, reflecting both the underlying maturity of the portfolio and, in some markets, less certain conditions."

He added: "The broad spread of 3i's asset classes and geographies, the quality of our network, and the strength of our financial position, enable us to face these more uncertain economic and market conditions from a position of confidence."

1. Investment and realisations

3i invested £544 million during the quarter, bringing the total invested in the nine months to 31 December 2007 to £1,778 million. Investment for the equivalent nine month period last year was £1,125 million. In addition, £471 million (2006: £133 million) was invested on behalf of co-investment funds managed by 3i.

Investment by business line was as follows:

 

Investment £m
 
Quarter ended
30 June
2007
Quarter ended
30 September
2007
Quarter ended
31 December
2007
9 months to
31 December
2007 (Total)
9 months to
31 December
2006 (Total)
Buyouts 107 329 208 644 277
Growth Capital 271 222 245 738 396
Venture Capital 31 34 60 125 153
Infrastructure - 58 25 83 284
QPE 182 - - 182 14
SMI - - 6 6 1
Total 591 643 544 1,778 1,125

 

Realisation proceeds received by 3i (excluding co-investment funds) were £429 million for the third quarter, bringing realisation proceeds to £1,473 million for the nine months to 31 December 2007 (2006: £1,470 million).

Realisations by business line were as follows:
 

 

Realisations £m Quarter ended
30 June
2007
Quarter ended
30 September
2007
Quarter ended
31 December
2007
9 months to
31 December
2007 (Total)
9 months to
31 December
2006 (Total)
Buyouts 256 284 290 830 771
Growth Capital 231 42 85 358 479
Venture Capital 84 27 30 141 61
Infrastructure - 32 - 32 8
QPE 2 15 - 17 -
SMI 32 39 24 95 151
Total 605 439 429 1,473 1,470

Investments and realisations made during the period by 3i Infrastructure Limited and 3i Quoted Private Equity Limited are not included.

2. Returns

Realisations for the three month period have been achieved at aggregate uplifts over 31 March 2007 carrying values at similar levels with those achieved in the half year to 30 September 2007 (48%).

As usual, an important element in the determination of 3i's results for the full year to 31 March 2008 will be the detailed valuation exercise carried out on its investment portfolio as at that date.

3. India infrastructure

In September 2007, 3i announced the first close of the 3i India Infrastructure Fund at $500 million. The Fund, which is the first to be established in the framework of the strategic partnership agreement announced by 3i and the India Infrastructure Finance Company Limited, has a target size of $1.0 billion and expects to announce a final close by the end of March 2008.

4. Balance sheet

The Group's gearing as at 31 December 2007 was largely unchanged from 30 September 2007. 3i Group plc had 386,502,922 issued ordinary shares admitted to trading on a regulated or prescribed market as at 31 December 2007.

For information please contact:

 

3i Group plc
Simon Ball, Finance Director -  020 7975 3356
Patrick Dunne, Group Communications Director -  020 7975 3283

Maitland
Philip Gawith -  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 2007 to 31 December 2007 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.