Queen’s reign at 3i comes to an end as he seeks new challenges

Michael Queen, chief executive of 3i is bowing out of the private equity group where he has worked for almost 25 years.

He said, having restored 3i’s financial health in his three years at the top, it was now time “to seek new challenges.”

Founded in 1947 as state-owned Investors in Industry, 3i suffered in the private equity downturn towards the end of the last decade.

Today shares rose 4% as it said conditions were starting to improve. “We expect a more positive economic outlook to result in a stronger overall performance from our private equity portfolio, although the effect of this is unlikely to have an impact upon our results for the financial year just ending,” Queen said.

He was paid just more than £1 million last year and over his quarter century at the firm has amassed shares worth almost £5 million.

He will not leave until a successor has been found — the search for a replacement has already started.

3i said it had invested £623 million in the 11 months to the end of February up from £581 million a year earlier. Sales of investments rose sharply from £491 million to £764 million.