(Corrects headline, first and second paragraphs to show theseare shareholder returns not returns to shareholders)
LONDON, Nov 10 (Reuters) - Investment company 3i Group reported shareholder returns of more than 1 billionpounds ($1.24 billion) in the six months to Sept. 30 afterbenefiting from the fall in sterling, it said on Thursday.
The group, which has private equity, infrastructure and debtmanagement divisions investing in northern Europe and NorthAmerica, produced shareholder returns of 1 billion pounds or 23percent of shareholders' funds compared to 168 million in thesame period in 2015.
3i declared an interim dividend of 8.0 pence, half of itsbase dividend and said the board expected to recommend a totaldividend for the year of no less than the 22 pence, paid in theyear to 31 March 2016.
It made 654 million pounds after selling assets such asowner of baby brands Mayborn and more recent investments such asGeka which makes cosmetic brushes and Basic-Fit, a discount gymoperator.
Chief Executive Simon Borrows said the London-listed groupwould continue to be active in both deploying capital andrealising its investments for the remainder of the financialyear, which ends in March 2017.
He said there had been limited impact of Britain's vote toleave the European Union on the group but the steep fall insterling added translation benefit to the investment portfolio'sperformance as it is reported in pounds. The group recorded atotal net foreign exchange gain of 283 million pounds.
With very low interest rates globally, alternativeinvestment funds are benefiting from a flood of capital lookingfor yield. But this has resulted in more private equity moneychasing deals and pushing up valuations.
"I believe we are going to be locked into a low interestrate environment in Europe, where most of our investments are,for some time to come," Borrows said on a call with reporters.
The group's net asset value per share rose to 551 pence from463 pence on March 31, 2016. ($1 = 0.8037 pounds) (Reporting by Dasha Afanasieva. Editing by Jane Merriman)