3i Group reports solid third quarter progress

Private equity and infrastructure company 3i Group reported a positive third quarter on Thursday, saying it was on track to deliver another year of strong growth.

The FTSE 100 company said its net asset value per share reached 701p at the end of the period, with a total return of 19.4% for the nine months to 31 December.

Private equity cash realisations were £389m in the nine months to 31 December, the board said, with the firm also announcing the €307m divestment of ATESTEO in December.

It completed two add-on investments in Cirtec Medical and Ponroy Santé, taking year-to-date private equity cash investment to £585m.

The board said it saw strong performance from 3i Infrastructure, as its share price increased by 7% in the quarter following the announcement of its divestments of Elenia and Anglian Water Group.

It said it also Invested £167m in its first US infrastructure investment, Smarte Carte, in November and disposed of its residual debt management investments, generating proceeds of £127m.

“This was another positive quarter for 3i,” said chief executive Simon Borrows.

“Action's expansion continued with the opening of 244 new stores in 2017, including six pilot stores in Poland.”

Borrows pointed out that the company announced the realisation of one of its 2013-2016 investments, ATESTEO, at an “excellent” money multiple of 4.4x.

“In addition, we completed our first US Infrastructure investment and two important further investments in private equity, reinforcing our strategy of building platform investments.

“We enter the final quarter of our financial year confident that our investment portfolio will deliver another year of strong growth.”