UK fund 3i emerges from restructuring with strong earnings

Private equity firm 3i reached the end of a three-year restructuring with strong earnings growth at its portfolio companies, helping it post a full-year return on investment of £719 million.

The British owner of Agent Provocateur and retailer Action said its net asset value rose 14 per cent to 396 pence a share, despite a negative hit from currency fluctuations worth £114 million, or 12 pence a share.

Shareholder frustration at weak results and a poor share price performance forced a change in leadership in 2012 and led to the restructuring. 3i has embarked on a selling spree to rebalance its private equity business, targeting a portfolio of fewer than 40 companies. It owned 65 as of end of March this year.

The company realised proceeds of £831 million from selling assets. – (Reuters)