3i slims after £222m sale of debt investment unit to InvestcorpComments Off on 3i slims after £222m sale of debt investment unit to Investcorp
THE UK’S oldest private equity firm 3i is pulling out of the debt investment after selling its 50-strong team to Bahrain-based funds group Investcorp for £222 million.
The sale of the 3i Debt Management, which manages $12 billion, shrinks the group down to two divisions, private equity and infrastructure, from three units previously.
The move underscores big changes in the industry, as some firms push into areas like property and credit and others stick to their knitting by focusing on buyouts.
“The fork in the road was do we become a bigger alternative fund manager or do we become more focused on making higher returns on proprietary captial and we’ve really moved to the latter,” 3i chief executive Simon Borrows says.
3i, which owns companies like BoConcept, expanded into debt management in 2011 when it bought Mizuho Investment Management. The sale roughly doubles Investcorp’s assets under management to $23 billion.