3i Group Plc is an international private equity and venture capital firm located in the City of London. Founded in 1945 as Investors In Industry, it is one of the oldest private equity firms in the world and an originator of the UK private equity industry. 3i is publicly traded on the London Stock Exchange, with ticker code III, where it is currently a constituent of the FTSE 100 Index.
3i typically invests in mid-market companies in mature markets and has a strong presence in Europe and the Asia Pacific region. It seeks to provide companies with capital and expertise to help them Readmoregrow and realise their full potential. 3i also operates a number of other specialised investment units, such as its regional and sector-specific teams, which focus on specific geographic and industry areas.
The companys primary activities include: private equity, venture capital, and debt. 3is private equity investments range from controlling interests to minority participations and may involve direct equity investments, joint ventures, and mezzanine finance. In venture capital, 3i provides both seed and growth stage financing to entrepreneurs in the UK, Europe, and North America. It also manages three separate funds, USD invested in North America and Europe, and AUD invested mainly in Australia and New Zealand, and EUR invested mainly in Europe.
3i primarily looks for investments in established businesses, with experienced management teams, strong fundamentals, and potential for growth. Investment opportunities are also identified through the firms network of partnerships, which includes venture capital firms, corporate finance advisors, and entrepreneurs. The company also works with a number of other fund managers and other financial institutions to form syndicates and other strategic alliances.
In addition to investments, 3i provides additional support to its portfolio companies, including strategic advice and guidance, guidance on M&A and financing decisions, and investor relations support. The companys investments are spread across the industries and sectors such as consumer, industrial, healthcare, financial services, and media. The total return on 3is investments in the six months ended 30 June 2020 was a positive 75.4%, with a 1.4% return for the preceding 12 months period.
In April 2019, 3i announced the operational sale of its interests in Omega, its minority equity and debt investments business, as part of the company’s strategy to focus on its core private equity activities. In June 2019, the company sold its majority stake in UK-based general insurance broker, AJ Gallagher, to US-based private equity firm, Bain Capital.
In October 2020, 3i acquired a 50% stake in India-based digital payments provider Razorpay for an undisclosed sum. The investment is part of 3i’s strategy to expand its presence in the fast-growing digital payments and finance sector. The transaction is expected to close in the near future.
3i has a long history of corporate social responsibility and is a signatory of the United Nations Global Compact and supports the United Nations Sustainable Development Goals. The company has adopted accredited standards for measurement, reporting and evaluation of its global operations, with the goal of minimising their environmental impact. 3i also takes a rigorous approach to selecting investments, seeking to ensure that potential investments are of the highest quality and ethical standards.
The company has traditionally remained highly profitable, although it faced headwinds in 2020 due to the economic downturn caused by the coronavirus pandemic. 3i was able to maintain a solid balance sheet and healthy liquidity levels throughout the pandemic, however, and continues to focus on delivering long-term growth and value to its shareholders.
