LONDON (Alliance News) - 3i Group PLC Wednesday said that it received GBP164.0 million of private equity realisation proceeds in the first-quarter, helped by market conditions creating opportunities for realisation and refinancings, with an additional GBP245.0 million expected from exits signed but not yet completed.
3i said that the mid-market private equity market remains fully-priced, which has provided it with opportunities for realisations, but continued to result in a "cautious approach" to new investment.
3i also said that the strength of sterling resulted in a GBP68.0 million foreign exchange hit in the quarter to June 30.
In addition, 3i also said that net divestment totalled GBP91.0 million in the quarter. Net debt was down to GBP839.0 million from GBP160.0 million over the quarter, with gearing falling to 3% from 5% over the period, driven by net realisation proceeds received over the quarter.
The group's diluted net asset value per share increased to 361 pence from 348 pence in the first-quarter, before the payment of its final dividend of 13.3 pence per share made last week.
"We are seeing good momentum across the group and a growing number of exits at attractive valuations. We remain cautious investors in both private equity and infrastructure given the competitive dynamics in those markets but have made selective investment in all three divisions," Chief Executive Simon Borrows said in a statement.
3i shares were Wednesday quoted down 0.8% at 390.10 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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3i Group (III)