(Adds CEO comment, detail)
LONDON, Nov 12 (Reuters) - British private equity firm 3i sold 307 million pounds ($467 million) of assets in thehalf year to the end of September, and saw its net asset value(NAV) per share rise despite what it described as adeteriorating market environment.
The company said on Thursday it made a 26 million poundprofit on the asset sales.
Its diluted NAV - a key measure of the value of its assets-rose 12 percent on the previous year to 401 pence. 3i invested208 million pounds in the six months ended September and said itwould pay an interim dividend of six pence a share.
However total returns on opening shareholders' funds fell to4.4 percent, down from 7.1 percent the previous year, partlybecause of the market squeeze from falling oil and gas prices.
"We're not exposed to China-specific stuff, we're notdirectly exposed to oil and gas or commodities, but there hasbeen a general tightening across quite a lot of economies," saidChief Executive Simon Borrows.
Borrows noted that portfolio companies including JMJ, asafety management consultancy with a focus on the oil and gasindustry, had sought to cut costs.
"It's really about that ricochet out of these more difficultsituations into the industrial sector," he said.
3i said it expected to pay a full year dividend of at least15 pence a share.
The British fund has been streamlining and reached the endof a three-year restructuring in May. It is still seeking toreduce its portfolio to fewer than 40 companies.
Sales in the period included the disposal of French medicaldiagnostics firm Labco to Cinven. As of the end ofSeptember, 3i held 53 assets in its portfolio, as well as fivelisted stakes.
Simon Thompson took over as Chairman from Adrian Montagueearlier this year. Thompson is also Chairman of Tullow Oil.
($1 = 0.6576 pounds) (Reporting by Freya Berry; Editing by Emiliano Mellino and MarkPotter)
3i Group (III)