3i earnings performance softens

published 26 January 2012

3i Group, an international private equity firm, has said earnings performance in some of its portfolio has softened over the three month period to December 31st.

The company blamed this on the ongoing deterioration in the macroeconomic outlook and market uncertainty.

However it was by no means all bad news, with gross debt falling to £1,659m (September 30th 2011: £1,722m), and net debt reducing by £136m to £395m.

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Total investment during the nine months ended December 31st 2011 was £530m, compared to £510m the same period the previous year, while total realisations were £751m, compared to £398m for the same period the previous year.

Michael Queen, 3i's Chief Executive, said: "We have made a number of important strategic steps to strengthen each of our business lines in the three month period, including the reorganisation of our private equity business, signing our first investment in Brazil, and the launch of our Credit Opportunities Fund.

"We have also generated good realisations from the portfolio, although, as we said in our November half-year results announcement, the operating environment is challenging given the deterioration in the macro-economic outlook and continued market uncertainty. Conditions have not improved since then, which has been reflected in a softening in the earnings performance of some of the portfolio over this period."