Debt halves at 3i

Struggling private equity group 3i halved its debt in the three months to June, largely due to its £732m rights issue and realisation proceeds outweighing new investment as it stopped putting money into its portfolio companies.Net debt at end June was £961m, compared with £1.91bn at March 2009. Realisation proceeds (excluding funds managed or advised by 3i) were £163m (2008: £301m,) with prices received slightly higher than March 2009 valuations. Realisations exceeded new investment by £87m for the three months to 30 June 2009. There were no investments in new portfolio companies in the period. Investments fell from £428m this time a year ago to £76m.The group also announced the appointment of John Allan and Alistair Cox as non-executives effective 1 September 2009 and 1 October 2009 respectively.