3i banks profits in sellers’ market but no new investments
Britain's oldest private equity firm, 3i, took advantage of a sellers’ market during the second quarter to bank £164 million from disposals.
The stock market flotation of animal products manufacturer Phibro in the US and sale of a stake in Foster + Partners, the architect of City Hall were among a host of deals completed by 3i in the period ending June 30.
In addition 3i said it had signed, but not completed, another £245 million worth of exits. These include the sales of German car parts maker Hilite and French hospital group Vedici.
“The mid-market private equity market remains fully priced," Simon Borrows, 3i’s chief executive, said.
"This has provided us with the opportunity for good realisations, but continues to result in a cautious approach to new investment. In that context, no new investments were completed in the quarter.”
The company said it had benefited from £10 million worth of dividends from its infrastructure arm during the quarter.
It said its public-private partnership investment team had committed to invest £4.6 million to build a new campus for Ayrshire College in Kilmarnock, Scotland.
“We remain cautious investors in both private equity and infrastructure, given the competitive dynamics in those markets,” Borrows added.
