3i £800m share handout after sell-off

By This Is Money
Updated: 04:20 EDT, 10 May 2007

Leading venture capital house 3i is cashing out record amounts from investments, sending profits from disposals in the last year up nearly 50% to £830m.

Realisation from investments broke the previous year's record to come in at £2.4bn for the 12 months to 31 March.

'It has been an attractive market for realisations,' said chief executive Philip Yea.

Recent months have seen unprecedented numbers of mergers and acquisitions. Over the year, 3i's new investments rose 40% to £1.5bn, with significant levels of minority investments being taken in China and India.

The full-year dividend is up nearly 6% at 16.1p and 3i plans to pay another £800m to shareholders via a B-share handout. Assets under management rose 25% over the year to £7.1bn

3i has expanded its international operations and has boosted investment in new markets including infrastructure as the buyout industry becomes increasingly competitive.

'Although levels of realisations are expected to slow we remain confident of reporting further good progress in the delivery of our strategy over the year ahead,' said Chief Executive Philip Yea.

The company retains a 46% stake in its infrastructure fund after raising £700m in March from the float of 3i Infrastructure.