Private Equity firm 3i posts 10 per cent return
Listed private equity firm 3i has reported an increased half-year return of 10 per cent, boosted by good trading performance across its portfolios.
The company notched up a total return of £767m for the first six months of the year, a 10 per cent increase on the previous year’s figure.
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This return was in line with the same period last year, and 3i raised its first-half dividend to 17.5p per share
“Despite the uncertain macroeconomic environment, the majority of our investments have moved into the second half of the year with decent momentum,” said chief executive Simon Borrows.
3i’s net asset value (NAV) per share rose seven per cent to reach 873p at the end of September, but fell short of analysts’ expectations.
Barclays analysts said the NAV rise was 3.4 per cent below their mid-point estimate.
Shares in the private equity firm fell almost 4.5 per cent following the results.
3i’s private equity division reported a gross investment return of £666m, including a £176m gain on foreign exchange.
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The portfolio’s return was driven by strong performance of assets including discount retailer Action. 3i said its direct stake in Action will rise from 44 per cent to almost 50 per cent as it restructures its interest in the business.
The firm’s infrastructure division also made a strong contribution, with a gross investment return of nine per cent at £88m.
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