3i reshuffle sends key partner out

PRIVATE equity giant 3i is to undergo a radical restructuring which has resulted in the departure of one of its star dealmakers.

City A.M. confirmed last night that the London-based firm, as part of the restructuring, will combine its growth capital team, which buys small interests in companies, with its buy-out team, which takes up controlling stakes in companies.

The firm is also moving towards a geographically based structure, marking a departure
from its current configuration, which focuses on products.

3i’s restructuring is the biggest reshuffle since current chief executive Michael Queen
took over from Philip Yea in 2009.

But the overhaul has left a bitter taste in the mouth of the group’s heavy hitter, Jonathan

Russell, who is one of Europe’s best known buy-out figures, is set to leave 3i after almost 25 years with the firm. He joined 3i in 1986 and became head of buy-outs in 1999.
The team created by the newly combined capital and buy-out business in Europe will replace Russell.