Pre-close period briefing

27 Mar 2008

 

3i Group plc ("3i"), a world leader in private equity, will be holding discussions with analysts and investors ahead of its close period for the year ending 31 March 2008. This statement sets out the information for the 11 months to 29 February 2008 that will be covered in those discussions. 3i expects to announce its results for the year ending 31 March 2008 on 15 May 2008.

Commenting on the statement, Philip Yea, 3i Chief Executive said:

"Our business as a whole continues to perform in line with our cross cycle return objectives. Although our portfolio companies are not immune to economic cycles, to date we have seen no material changes to their overall financial performance. The opportunities available to our investment business are considerable, notwithstanding the deterioration in the financial markets since the turn of the year. As expected, realisations have slowed. Our clear focus on the mid market and our international breadth, highly selective approach to new investment and the diversity of our portfolio, continue to position us well against a more challenging market backdrop."

The main topics that will be discussed with analysts and investors are set out below.

1. Investments and realisations

3i invested a total of £2,154 million in the eleven months ended 29 February 2008 compared with £1,348 million in the equivalent period last year. In addition, £600 million (2007: £250 million) was invested on behalf of co-investment funds managed by 3i.

Realisation proceeds received by 3i (excluding co-investment funds managed by 3i) totalled £1,619 million in the eleven months ended 29 February 2008 (2007: £1,935 million). 

Investment and realisation proceeds by business line were as follows:

 

Investment £m   Realisation proceeds £m
(11 months ended) 29 February
2008
28 February
2007
  (11 months ended) 29 February
2008
28 February
2007
Buyouts 823 431   Buyouts 843 990
Growth Capital 960 447   Growth Capital 432 609
Venture Capital 129 170   Venture Capital 168 133
QPE 182 14   QPE 17 -
Infrastructure 54 284   Infrastructure 32 5
SMI 6 2   SMI 127 198
Total 2,154 1,348   Total 1,619 1,935

 

Total investment and realisation proceeds for the nine months to 31 December 2007 were £1,778 million and £1,473 million respectively.

2. Returns

Aggregate Gross Portfolio Return for the 11 months to 29 February 2008 is in line with our cross cycle return objectives. 

The portfolio continues to perform well despite a more challenging economic outlook. As usual, an important element in the determination of 3is results for the full year to 31 March 2008 will be the detailed valuation exercise carried out on its unquoted investment portfolio as at that date.

3. India Infrastructure Fund

Today 3i also announces that the 3i India Infrastructure Fund (the "Fund") has exceeded its $1.0 billion target, with a final closing to be announced in April. The Fund includes commitments from 3i of $250 million, with 3i Infrastructure Limited, which is advised by 3i Investments plc, committing $250 million.

For information please contact:

3i Group plc
Simon Ball, Finance Director -  020 7975 3356
Patrick Dunne, Group Communications Director -  020 7975 3283
Rachel Richards, Press office -  020 7975 3573

Maitland Consultancy
Philip Gawith -  020 7379 5151

This statement aims to give an indication of 3i's expected return (and of key components of that return) for the twelve months to 31 March 2008. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. In particular, an important element in the determination of 3i's results for the twelve months to 31 March 2008 is the detailed valuation exercise carried out on its investment portfolio as at that date. The final results for the twelve months to 31 March 2008, due to be reported on 15 May 2008, may differ accordingly. 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.