In 1997, 3i backed Gary List to buy out the UK's number two directories business, Thomson Directories. After exiting well, just two years later, 3i looked across Europe for similar opportunities. The relationship between 3i's Finnish venture business and telecommunications group, Sonera, enabled 3i and Veronis Suhler Stevenson ("VSS") to buy out Sonera's telephone directories business Fonecta, in 2002.
In 2003, 3i and VSS led the buyouts of KPN's directories businesses, De Telefoongids in the Netherlands and Verizon's directories businesses in Austria and central Europe. This brought the combined investment by 3i and its buyout funds in these separate investments to €140 million.
In 2004, together with advisers and management from 17 different nationalities, the three businesses were merged to form Yellow Brick Road ("YBR"), under the chairmanship of Gary List.
A refinancing of the combined group raised €1 billion of new debt and delivered cash returns for 3i and its co-investment funds of €224 million. After this merger, 3i and funds retained 44% of YBR, a business making over €150 million EBITDA and one of the fastest growing directory businesses in Europe.
