3i bumps up dividend as total return rockets

Private equity group 3i has declared a bumper dividend after its total return rocketed up 93% to £1.59bn thanks to valuation gains on its portfolio and a big benefit from the weakness of the pound.

Private equity group 3i has declared a bumper dividend after its total return rocketed up 93% to £1.59bn thanks to valuation gains on its portfolio and a big benefit from the weakness of the pound.Net asset value increased 30% to 604p per share by its 31 March year end and the return on opening shareholders' funds was 36% compared to 22% the year before.
3i proposed a final dividend of 18.5p per share to hike the total dividend to 26.5p, a rise of 20% on the 22p paid the previous year.
The FTSE 100 group, which sold its debt management business for £270m during the year and repaid a €331m bond, ended the year with a net cash balance of £419m and liquidity of £1.3bn.
The Private Equity gross investment return of £1.6bn or 43% was driven by Action, Scandlines, and more recent investments, such as ATESTEO.

A £297m gain came from the weakness of the pound, with almost three quarters of assets being held in euros or dollars.