3i launches new €1.2bn fund

Confidence is returning at private equity group 3i with the group announcing the launch of a new fund. In the 11 months to 28 February 2010 the company pulled in its horns, investing just £311m compared to £898 in the corresponding period of the year before. Of this amount £130m was in the form of top-ups to existing investments.Realisations during the period were down to £998m from £1,123m the year before. The figure does not include the Ambea and Apatech businesses, which together will generate around £250m of further realisation proceeds.The portfolio continues to perform in line with expectations, the group said.The group has announced the creation of a Growth Capital Fund at €1.2bn. The intention is for the fund to buy minority stakes in growing mid-market businesses, typically investing €25m to €150m in each.Thus far, investors from Asia, Europe, the Middle East and North America have committed around €400m to the fund. As part of its €800m commitment, 3i will contribute a seed portfolio of Growth Capital investments valued at €339m, the company said.The fund’s first new investment is an €84m stake in Refresco, a leading European fruit juice producer.At the end of February the group’s cash, cash deposits and undrawn committed facilities stood at £2.35bn, up slightly from £2.34bn at the end of 2009.Net debt was reduced by £115m in the first two months of 2010 to £528m.