3i rediscovers its appetite for big deals
PRIVATE equity giant 3i yesterday said its portfolio of investments had turned the corner and that the outlook for new deals was looking more positive.
The largest listed private equity firm said it invested £105m in the three months to the end of June, up from £76m in the same period of 2009, when the industry was on its knees.
It spent £35m on Vedici, a French private healthcare player, and ploughed a further £70m into its existing portfolio of firms.
And in a sign that the frozen deal-making environment is starting to thaw, the firm sold off £79m of investments, including the £29m divestment of funds data firm Kneip.
It also said it was expecting to book £120m from the sale of part of Inspicio, the testing and inspection business, when it completes at the end of the summer.
This is the first time in seven quarters that the private equity giant has invested more than it realised in sales, suggesting appetite for new investments is slowly creeping back.
Michael Queen, 3i’s chief executive, said: “Despite uncertain markets, the business continues to perform well. We are seeing stable to improving earnings performance across the portfolio and continue to see a good pipeline of investment opportunities.”