3i Infrastructure pleased with total NAV return, appoints new chairman

In the six months to 30 September, the group achieved a 6.5% total return on net asset value, which it described as a “good result” compared with its targeted returns of 8% to 10% per year in the medium term.

3i said the European portfolio continued to perform well both financially and operationally, adding the portfolio value increase in the period was driven mainly by the positive impact of regulatory developments on the value of the company's holding in electricity distribution company Elenia, which offset a sluggish performance from the India Fund.

The FTSE 250 group, which invested £187m in the first six months of the year in European mid-market economic infrastructure and "low-risk" energy sectors, said portfolio income in the first half was in line with expectations at £27.1m.

The investment group said it expects the income generated by the portfolio to increase in the second half, adding it will pay a 3.62p interim dividend and is on track to pay out 7.25p for the full year.

"We continue to develop the company's investment pipeline and we are assessing a broad range of early-stage opportunities,” said group managing partners Ben Loomes and Phil White.

“In these highly competitive markets, we will remain disciplined in the assessment and pricing of these opportunities."

Meanwhile, the group has announced Richard Laing will replace outgoing chairman Peter Sedgwick.

Laing, the former chief executive of private equity and infrastructure investors CDC Group, is currently the non-executive director of JP Morgan Emerging Markets Investment Trust and will step in his new role on 1 January.

"I am excited by the opportunity to build on the strong foundations 3i Infrastructure has laid to date and to support the company in taking advantage of future opportunities," he said.

3i shares were up 1.15% to 176.30p at 0930 GMT on Friday.