3i ramps up investment activity

6th Jul 2011 07:03

Debt levels at private equity investment firm 3i came down in the second quarter of 2011 as realisation proceeds comfortably outweighed investments.Investments in the April to June quarter totalled £233m, a sharp increase on the £105m invested in the corresponding quarter of 2010, while realisation proceeds soared to £337m from £79m in 2010. The group made £158m of new investments, while £36m of top-up investments were made. New investments included £112m in Hilite, £17m into GO Outdoors and £13m into World Freight Company International. The largest of the realisations during the period were the sales of Hyva (£180m), Norma (£74m) and RBG (£46m).The group had cash, cash deposits and undrawn committed facilities of £1,910m at 30 June 2011, up from £1,846m at the end of March. Net debt decreased from its fiscal year-end (March 30) level of £522m to £471m, recognising the net inflows from investments and realisations, together with other operating expenses."We have made a good start to the year with a significant increase in the level of investment during the period. These new investments and a strong pipeline combined with our confidence in the portfolio, provide a positive outlook for the business," said 3i's chief executive, Michael Queen. --jh