3i to float quoted company fund

Europe’s largest quoted private equity manager is turning its sights on quoted stocks with a listed vehicle, following its recent success with a public infrastructure fund.

3i, Europe’s largest quoted private equity manager, is planning to float a new fund raising at least £400 million to invest in quoted small and mid-cap quoted companies primarily in the UK and continental Europe without taking the private.

The placing is scheduled to close in June and 45 percent of the amount raised will come from the parent company 3i.

The company intends to build a portfolio of influential or controlling stakes in small and mid-cap quoted companies, primarily in the UK and Continental Europe. A spokeswoman said this meant taking stakes of between 15 percent and 65 percent.

It would then apply private equity techniques and expertise to those companies including increased leverage.

The company plans to have invested most of the net proceeds of the placing within an 18 month period following the listing. It will then use appropriate gearing to fund further investments over the remainder of the initial investment period. 

The portfolio is likely to include investments in 8-12 companies. It is targeting a 16 percent a year return.