3i closes first growth capital fund on €1.2bn

For the first time, the listed firm has collected capital from external investors for a fund dedicated to growth investments to bolster its own commitments.

3i has closed its first fund dedicated to growth capital investments with money raised from external investors as well as from its own balance sheet. The fund totals €1.2 billion.

The listed firm has previously used only money from its balance sheet to make growth capital investments, despite raising external money for investments in buyouts and infrastructure. For the growth capital fund, 3i raised €400 million from limited partners in Asia, Europe, North America and the Middle East to add to the €800 million it will invest from its balance sheet.

“We see significant growth opportunities in growth capital investments,” a spokesperson for 3i told PEO in an interview.

The firm also closed its first deal from the fund Thursday, an €84 million growth investment in Refresco, a provider of fruit juices.

3i provided a summary report of its activities in the past 11 months, ending 28 February. The firm invested a total of £311 million (€347 million; $464 million) in the past 11 months, compared with £898 million in the same time period last year.

The firm also generated realised proceeds of £998 million in the 11-month period.

3i was able to cut its debt by £115 million to £528 million as of 28 February, according to the report. The firm had cash flow of £2.35 billion, the report said.