DFJ Esprit buys telecoms and technology portfolio from 3i

Venture firm DFJ Esprit has snapped up a portfolio of European technology and telecoms companies from 3i as it launches new funds worth $380m (£233m).

The deal with 3i is financed by investors Coller Capital and HarbourVest Partners.

It sees companies like Icera Semiconductors , which makes chips for wireless 3G modems, and wireless broadband network The Cloud , move alongside DFJ's existing portfolio of fast-growing companies, which includes mail order DVD renter Lovefilm .

Simon Cook, chief executive of DFJ, said the 3i portfolio was attractive to his new £170m Encore I fund because the companies were making money.

He said that despite the recession, their sales were up on average 40pc a year, matching the growth of his firm's existing portfolio.

"3i has been investing in them over the years and many of them are getting to the point in their lives where they are growing revenues," he said. "When we get through the recession there will be a focus on growth and market opportunities. We think these companies will be very valuable in the coming years."

Ian Lobley, 3i's head of venture, said that the company was happy to sell at "good valuations".

Separately, DFJ has closed the first $100m of a planned $215m venture fund that will take stakes in 10 European technology companies.

Mr Cook said that fund-raising in the current environment had been "slow". He pointed to the fact that it had tapped public funds through the European Investment Fund as an example of the weak private sector market.