3i Cautious on Private Equity, Sees Sale Opportunities

3i Group Plc, Britain’s oldest private-equity firm, said it remained a “cautious investor” in its private-equity and infrastructure businesses and foresaw growing opportunities to sell its investments.

3i received 164 million pounds ($277.8 million) in proceeds from private-equity realizations in the second quarter, with another 245 million pounds expected from exits signed but not yet completed, the London-based firm said in a statement today.

“The new financial year has started well,” Simon Borrows, chief executive officer of 3i Group, said in the statement. “We are seeing good momentum across the group and a growing number of exits at attractive valuations. We remain cautious investors in both private equity and infrastructure, given the competitive dynamics in those markets but have made selective investment in all three divisions.”

3i made cash investments in private equity of 35 million pounds in the three months through June compared with 9 million pounds in the same period last year. The largest was the 27 million-pound purchase of a stake in Eurofund V from a third party investor, the firm said.

Assets under management fell to 12.5 billion pounds at the end of June from 12.9 billion pounds three months earlier. Seventy-four percent of the assets were related to third party capital, the company said.

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