3i Group plc Report and accounts 2005

3i at a glance

Our business lines
Graph showing Portfolio by value (£m) as at 31 March 2005 Buyouts 1570 = 36%. Growth capital 1226 = 29%. Venture capial 743 = 17%. SMI 762 = 18%.
Graph showing Trend in international portfolio value (%) for the years to 31 March 2000 UK 78; International 22. 2001 UK 71; International 29. 2002 UK 66; International 34. 2003 UK 63; International 37. 2004 UK 58; International 42. 2005 UK 52; International 48.
Chart showing the Group financial highlights (£m) for the year to 31 March 2005. Gross portfolio return Total 762; Buyouts 332; Growth Capital 286; Venture Capital 74; SMI 70. Investment Total 755; Buyouts 338; Growth Capital 263; Venture Capital 143; SMI 11. Realisation proceeds Total 1302; Buyouts 505; Growth Capital 443; Venture Capital 156; SMI 198. Realised profit Total 260; Buyouts 117; Growth Capital 104; Venture Capital 37; SMI 2. Unrealised value movement Total 270; Buyouts 139; Growth Capital 116; Venture Capital 33; SMI -18.
3i's Smaller Minority Investments ("SMI") initiative, established in 2001, generates returns from some of our older and lower-growth investments. It is our objective to realise the SMI portfolio over the medium term. SMI comprises 807 investments valued at £762 million, representing 18% by value and 54% by number of 3i's total portfolio.

Our purpose:

to provide quoted access to private equity returns

Our vision:

  • - to be the private equity firm of choice;
  • - operating on a world-wide scale;
  • - producing consistent market-beating returns;
  • - acknowledged for our partnership style; and
  • - winning through our unparalleled resources.

What we do

3i is a world leader in private equity and venture capital, investing in Buyouts, Growth Capital and Venture Capital.

We use our international network to source and assess a wide range of investment opportunities, selecting only those which meet our return and quality criteria. Then, having made an investment, we work in active partnership with the boards of our portfolio companies to create value all the way through to the ultimate realisation of our investment.

Where we operate

3i operates through a network of teams located in 13 countries in Europe, Asia and the US.

We continue to build and refine our network and are in the process of opening an office in Shanghai and recruiting a team to develop a business in India.

What differentiates 3i

3i's network, resources, scale and approach are our key differentiators. All of these deliver market access, insight for investment decision making and the ability to add significant value to the companies in which we invest.

The strength of 3i's balance sheet also enables us to take a more flexible and longer-term approach to the financial structuring of individual investments.

Our business lines

Buyouts
3i's mid-market Buyout business operates primarily on a pan-European basis, investing in businesses with a transaction value of up to €1 billion.


Gross portfolio return
22%
Portfolio value
£1,570m
Chart showing the Buyouts Financial highlights (£m) for the year to 31 March 2005. Gross portfolio return 332. Investment 338. Realisation proceeds 505. Realised profit 117. Unrealised value movement 139.
Growth Capital
3i's Growth Capital business makes minority investments in established and profitable businesses across Europe and Asia, typically investing between €10 million to €100 million per transaction. This business line also manages 3i's minority equity investments in smaller buyouts.
Gross portfolio return
24%
Portfolio value
£1,226m
Chart showing Growth Capital Financial highlights (£m) for the year to 31 March 2005. Gross portfolio return 286. Investment 263. Realisation proceeds 443. Realised profit 104. Unrealised value movement 116.
Venture Capital
3i's Venture Capital business operates on an international basis, with a focus on the software, communications, healthcare and electronics sectors, typically investing between €2 million and €10 million per transaction.


Gross portfolio return
11%
Portfolio value
£743m
Chart showing Venture Capital Financial highlights (£m) for the year to 31 March 2005. Gross portfolio return 74. Investment 143. Realisation proceeds 156. Realised profit 37. Unrealised value movement 33.