HAS BRITAIN’S OLDEST PRIVATE EQUITY FIRM STOPPED THE ROT?
PHILIP MIDDLETON BANK OF AMERICA MERRILL LYNCH
The new capital management policy seems sensible, in that it seeks to steer a middle way between the ultimately over generous distributions which left 3i over-geared in the credit crisis and the recent approach, which tilted in the other direction… We reiterate our Buy rating on 3i.
MICK GILLIGAN KILLIK & CO
Although the lower than expected net asset value is disappointing this is offset somewhat by the announcement of an enhanced distribution policy. The market will be looking for a decisive plan from the new CEO to turn around the fortunes of the group… This turnaround will take time.
CHARLES CADE NUMIS
The adoption of a clearer distribution policy is encouraging, as well as the continued focus on reducing costs. 3i has a strong infrastructure franchise and the debt management team has impressive credentials. However… speculation over more radical corporate action is likely to continue.