3i’s venture arm sold in 130m deal
LISTED private equity fund 3i Group has sold most of its venture portfolio of smaller-sized European companies to a consortium of rivals, in a transaction that has netted it around £130m.
The move is part of 3i chief executive Michael Green’s plans to exit the group’s so-called venture and small minority investment portfolios as it looks to cut its debts. The debt pile has already been cut from £2.1bn at the end of last year to £961m at end-June, after other sales and a £732m rights issue this year.
The group said Coller Capital, HarbourVest and DFJ Esprit have bought the assets, which include The Cloud – the firm that provides wireless internet access in areas like the City – and 28 similar investments.
Ian Lobley, a partner at 3i and head of the venture portfolio team, described the valuation as “good”. “We are very pleased with this latest sale,” he said.
He said the assets will be run by DFJ Esprit through a new arm called Encore Ventures, and a new fund has already been set up to manage the companies. Coller Capital and HarbourVest Partners will remain the fund’s sole investors.