3i Infrastructure income up, deal rate accelerating

The UK-listed infrastructure investment firm more than doubled its portfolio income during the last financial year, according to annual results released today. The firm upped its investment rate during the period, putting nearly £200m to work.

3i Infrastructure, the listed UK infrastructure investment vehicle, achieved portfolio income generation of £69.3 million (€78.0 million; $113.9 million) in the year to March 2011, which allowed the firm to meet its dividend objective and was more than double the income generated in the prior year.

In a statement, the firm pointed to “renewed momentum” in investment activity, with £187.5 million invested and four new assets added to the portfolio during the period. Among these were Eversholt, the UK rolling stock leasing company (ROSCO) which was acquired in a £2.1 billion deal alongside Morgan Stanley Infrastructure Partners and Star Capital Partners in November 2010.

The firm delivered a total return to investors of £85.5 million for the year (or 9.2 percent on shareholder equity). Underlying equity investments delivered 1.4 percent growth in EBITDA compared with the prior year. Since inception, the firm has posted a 19 percent annualised asset internal rate of return (IRR).

3i Infrastructure listed on the London Stock Exchange in March 2007, raising £703 million in an initial public offering. It then raised an additional £115 million through a placing and open offer in July 2008. At March 2011, it had 17 portfolio assets valued at £822 million and net assets of £996 million.

3i Infrastructure is a wholly owned subsidiary of 3i Group, the London-based international investor in private equity, infrastructure and debt management.

*The June 2011 issue of Infrastructure Investor will include a keynote interview with 3i Infrastructure managing partner Cressida Hogg and partner Neil King.