3i creates £4bn debt division

The listed private equity firm has acquired Mizuho Investment Management, a debt management businesses, for £18.3m as part of its overall restructuring plan.

UK-based 3i Group has purchased Mizuho Investment Management (MIM) from Japanese headquartered Mizuho Corporate Bank for £18.3 million (€21.5 million; $29 million). 

MIM, which has £3.7 billion-worth of assets under management, will be merged with 3i’s existing debt management division to create 3i Debt Management, “a distinct business line” with approximately £4 billion total assets under management. 

MIM’s chief executive, Jeremy Ghose, has been named managing partner for 3i Debt Management. 

We now have three clear platforms for growth with our private equity, infrastructure and debt management businesses.

3i


Created in 2005 by Mizuho Corporate Bank as a fully owned asset management subsidiary, MIM primarily manages funds targeting senior and subordinated corporate debt.  With a team of 28 employees, MIM has raised eight funds totalling more than £4 billion. 

Earlier this month 3i group revealed its plans to launch a debt investment business that would complement its private equity and infrastructure programmes. The firm also recently merged its private equity divisions and shuffled management.

“We now have three clear platforms for growth with our private equity, infrastructure and debt management businesses,” a spokeswoman stated in an email. 

3i’s share price has risen steadily over the past month. At press time shares were trading at £2.88 per share, up 6 percent from its closing price on 1 September.