Net carried interest

Carried interest payable for the year was £64 million, which is offset by carry receivable of £79 million.

Carried interest payable is broadly in line with last year's level, despite the increase in proceeds, as a number of realisations were from early vintages with no associated carry schemes, or from carry schemes which have yet to reach the hurdle at which carry payable is accrued.

Carry receivable of £79 million relates primarily to Eurofund III, 3i's 1999 pan-European fund, whose cumulative performance in the first half passed through the point at which carried interest receivable within 3i's financial statements is triggered. The accrual at 31 March 2006 has been calculated on a fair value basis and includes carry receivable relating to realised and unrealised value increases arising on assets in more recent vintages, including Eurofund IV.