RNS Number : 6284Y
3i Group PLC
09 July 2008





3i Group plc - Interim Management Statement




9July2008



3i Group plc ("3i"), theinternational private equity company,today issues itsInterim Management Statementin accordance withFSA Disclosure and Transparency Rule 4.3.This statementrelates to the three month period from1 April2008to30 June2008.


Philip Yea, 3i's Chief Executive, said:"The mid-market has remained open over the first three months of the year, providing both investment opportunities and continued realisations despite the challenging economic outlook."


He added:"We remain highly selective with respect to new investment, and continue to monitor closely the financial performance of our portfolio. This approach,combined with the diversity of our business in terms of asset class, geography and sector put us in a good position to deal with what continues to be an uncertain economic environment."


1. Investment and realisations


3i invested£428million (2007: £591 million)during the three months ended 30 June 2008. A further£347million (2007: £111 million) was invested on behalf of funds managed or advised by3i during the equivalent period, bringing total investment for the period to£775million (2007: £702 million).


3i investmentby business linewas as follows:


Investment £m


3 months ended

3 months ended


30 June

30 June


2008

2007

Buyouts

251

107

Growth Capital

160

271

Infrastructure

-

-

QPE

-

182

SMI

-

-

VenturePortfolio

17

31

Total

428

591


Realisation proceeds received by 3i (excluding funds managed or advised by 3i) were £301 million (2007: £605 million). Thisexcludesthe realisationproceedsof approximately£240 millionfromABX and Freightliner, which were both announced during the period and are expected to complete in the next three months.


Realisation proceeds by business line were as follows:


Realisations £m


3 months ended

3 months ended


30 June

30 June


2008

2007

Buyouts

169

256

Growth Capital

96

231

Infrastructure

5

-

QPE

-

2

SMI

11

32

VenturePortfolio

20

84

Total

301

605


2. Returns


Returns for the three months to 30 June 2008 represent a positive start to the year ending 31 March 2009.


Realisations for the three month period have been achieved at aggregate uplifts over 31 March 2008 carrying values of 26%. The largest realisation in the period, Giochi Preziosi, was valued on an imminent sales basis at £151 million at 31 March 2008, being a 10% discount to final proceeds.


The quoted portfolio has generated a positive return of £79million during the period.


As usual, an important element in the determination of 3i's results for the half year to 30 September 2008 will be the detailed valuation exercise carried out on its investment portfolio as at that date.


3. Balance sheet


During the period, 3i issued £430million of new3.625 per centconvertiblebonds due 2011to refinance the existing ?550 million convertible bond due 25 July 2008.


Thecurrent viewremains thatinvestment and realisationswillbe broadly balancedover the full year so year-endnetdebtat31 March 2009 will besimilar to opening net debt.




Ends


For information please contact:


Simon Ball

Finance Director, 3i Group plc

020 7975 3356

Patrick Dunne

Group Communications Director, 3i Group plc

020 7975 3566

LydiaPretzlik

Maitland

020 7379 5151


This statement aims to give an indication of material events and transactions that have taken place during the period from1 April2008to30June 2008and 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.


This information is provided by RNS
The company news service from the London Stock Exchange
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