3i has announced that it completed the sale of 3i Debt Management to Investcorp. The transaction generates total cash proceeds to 3i of £270 million, of which £34 million relates to the repayment of loans provided to 3i Debt Management to fund two CLO warehouses, and an exceptional profit on disposal of £47 million, which it says will be included in its March 2017 NAV.
About 3i Debt Management
3i Debt Management manages circa $12bn in corporate loan funds and derivatives and was was created following the acquisition of Mizuho Investment Management in 2011. Its services have been mostly provided to 3i’s external clients.
About 3i
It is debatable whether 3i should be classified as an investment company or not. It holds a portfolio of mid-market private equity investments, focused on the Business Services, Consumer, Healthcare and Industrial sectors, but its also invests in infrastructure and has a debt management business and some might argue it is more akin to a fund manager than a fund. 3i says its strategic goal is to be a leading international manager of third-party and proprietary capital with three strong investment businesses (private equity / infrastructure / debt management) delivering top quartile cash investment returns over the longer term.
3i announces completes the sale of 3i Debt Management to Investcorp : III