3i Group Share News (III)

Debt levels at private equity investment firm 3i came down in the second quarter of 2011 as realisation proceeds comfortably outweighed investments.Investments in the April to June quarter totalled £233m, a sharp increase on the £105m invested in the corresponding quarter of 2010, while realisation proceeds soared to £337m from £79m in 2010. The group made £158m of new investments, while £36m of top-up investments were made. New investments included £112m in Hilite, £17m into GO Outdoors and £13m into World Freight Company International. The largest of the realisations during the period were the sales of Hyva (£180m), Norma (£74m) and RBG (£46m).The group had cash, cash deposits and undrawn committed facilities of £1,910m at 30 June 2011, up from £1,846m at the end of March. Net debt decreased from its fiscal year-end (March 30) level of £522m to £471m, recognising the net inflows from investments and realisations, together with other operating expenses."We have made a good start to the year with a significant increase in the level of investment during the period. These new investments and a strong pipeline combined with our confidence in the portfolio, provide a positive outlook for the business," said 3i's chief executive, Michael Queen. --jh