3i Infrastructure to invest in UK electricity(3)

Cressida Hogg, the company’s recently appointed managing partner, pointed to UK electricity companies as potential future investments as the London listed vehicle posted its year end results.

3i Infrastructure, the London listed infrastructure compnay, which is 33 percent owned by private equity investor 3i Group, has signalled potential plans to invest in UK electricity companies, as it posted its year end results.

The fund reported a three percent rise in its net asset value in 2008 owing to the robust performance of the sector despite the current economic downturn. According to a report by the Financial Times, managing partner Cressida Hogg said that the fund was “looking at a number of opportunities in that area”. 3i Infrastructure said it had cash reserves of £387 million as of 31 March this year.

In its year end results released today, 3i Infrastructure reported a net asset value of 111.9 pence for the year and a total return of £73.2 million ($110.6 million; €83.17 million), or 8.8 percent, on shareholders’ equity.

The firm made few investments in 2008 as it adopted a cautious outlook. Total investment for the year was $174 million. Peter Sedgwick, chairman of 3i Infrastructure, said: “In the period ahead, we will remain focused on building the portfolio and managing our assets to deliver our return objectives across the cycle.”

In late April, 3i Group confirmed that it was considering a rights issue in an effort to reduce its £2.1 billion (€2.3 billion; $3.1 billion) debt position. The rights issue could see as much as £700 million in fresh equity raised. The process is being managed by JP Morgan Cazenove and Merrill Lynch.