Notes to the financial statements

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36 Related parties

The Group has various related parties stemming from relationships with limited partnerships managed by the Group, its investments and its key management personnel. In addition the Company has related parties in respect of its subsidiaries.

Limited partnerships

The Group manages funds on behalf of third parties. These funds invest through a number of limited partnerships. Group companies act as the general partners of these limited partnerships and exert significant influence over them.

The following amounts have been included in respect of these limited partnerships:

Investments

The Group makes minority investments in the equity of unquoted companies. This normally allows the Group to participate in the financial and operating policies of that company. It is presumed that it is possible to exert significant influence when the equity holding is greater than 20%. These investments are not equity accounted for (as permitted by IAS 28) but are related parties. The total amounts included for these investments are as follows:

From time to time transactions occur between related parties within the investment portfolio that the Group influences to facilitate the reorganisation or recapitalisation of an investee company. There have been no single transactions in the year with a material effect on the Group's financial statements and all such transactions are fully included in the above disclosure.

Key management personnel

The Group's key management personnel comprises the members of Management Committee and the Board's non-executive directors. The remuneration of key management personnel was:

Subsidiaries

Transactions between the Company and its subsidiaries, which are related parties of the Company are eliminated on consolidation. Details of related party transactions between the Company, and its subsidiaries are detailed below.

Management, administrative and secretarial arrangements

The Company has appointed 3i Investments plc, a wholly owned subsidiary of the Company incorporated in England, as investment manager of the Group. 3i Investments plc received a fee of £26 million (2005: £26 million) for this service.

The Company has appointed 3i plc, a wholly owned subsidiary of the Company incorporated in England, to provide the Company with a range of administrative and secretarial services. 3i plc received a fee of £126 million (2005: £102 million) for this service.

Investment entities

The Company makes investments through a number of subsidiaries by providing funding in the form of capital contributions or loans depending on the legal form of the entity making the investment. The legal form of these subsidiaries may be limited partnerships or limited companies or equivalent depending on the jurisdiction of the investment. The Company receives interest on this funding and receives dividends and distributions from these entities.

Other subsidiaries

The Company borrows funds from certain subsidiaries and pays interest on the outstanding balances. The amounts that are included in the Company's income statement are as follows: