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3i sells stake in Singapore reinsurer for £182m

The London-based firm has sold its holding in ACR Capital Holdings to Asia Investment Capital after a hold period of almost 10 years.

London-listed private equity manager 3i has exited its investment in Singapore-headquartered reinsurance group ACR Capital Holdings, selling its stake to Asia Investment Capital for £182 million ($232 million; €207 million), according to a statement.

Proceeds of the sale represent a 42 percent increase against a valuation of £128 million as at 30 June 2016, 3i said. The firm did not provide further details on the investment multiple and internal rate of return for its investors.

Asia Investment Capital, which is jointly controlled by Shenzhen-government sponsored companies Shenzhen Qianhai Financial Holdings and Shenzhen Investment Holdings, reportedly paid around $1 billion to all of ACR’s shareholders for a 100 percent stake in the company. ACR’s shareholders include Singapore state investment company Temasek, Malaysian sovereign wealth fund Khazanah Nasional, and Japanese trading house Marubeni Corp.

ACR provides reinsurance solutions and risk management services in Asia across various business segments lines of property, marine, casualty, engineering, aviation, credit, and energy.

3i invested $200 million in ACR in November 2006 and has since helped the company grow its presence in Asia, expanding into Hong Kong, India, Malaysia, Taiwan, Japan, South Korea, Vietnam, as well as increasing its holdings in the Middle East.

3i has over £13.5 billion under management across private equity, real estate and debt funds and invests in businesses with an enterprise value of between €100 million to €500 million.

The transaction is subject to certain customary approvals.