Infrastructure Investors LLP

In June 2005 3i committed £150 million to Infrastructure Investors LLP ("I²"), alongside I²'s original founding investors, Barclays Private Equity and Société Générale. This brought total fund commitments to £450 million.

Established in November 2003, I² has built up a portfolio of 31 operating infrastructure projects in the health, education, transport and Ministry of Defence sectors. Assets include stakes in the DLR Lewisham extension, extensions to both King's College and St George's hospitals in London and several waste water treatment facilities in the north of Scotland.

3i was attracted to I²'s portfolio, experienced management team, deal flow and excellent relationships in the PFI market. In addition, the underlying asset base of the I² portfolio is operationally robust and cash generative, with cash flows supported principally by long-term quasi-government covenants.

3i is an active investor in the infrastructure market in its own right, with an in-house team of seven sector specialist investors, and recently invested in Alpha Schools Highland, a project to deliver 10 new schools in the Scottish Highlands.

Investing in I² provides a platform for 3i to increase its participation in a growing portfolio of PFI assets in parallel with its increasing direct investment activity.