Channel: Companies

Saturday, July 31, 2010
3i merges buyout division with infrastructure division

UK-based private equity major 3i has decided to merge its buyout division in India with its infrastructure division. According to the officials, this has been done keeping in mind the boom in the infrastructure sector in India and also because the company currently sees greater opportunity in this sector. Also the existing USD 1.2b infrastructure fund solely for India seems like a good reason to shift focus in finding the right infrastructure projects. As of now, all of the companyís individual projects in India have been more than USD 100m.


Asia head, Anil Ahuja, justifies the firmís decision saying that in the current scenario, there are no buyouts available whereas investments in infrastructure are aplenty. 3i has invested over $330 million in Indian infrastructure to-date. 3iís move might also have been due to the fact that the Indian government is offering tax incentives for investments made in the infrastructure sector.


This merger of division is not something new in the global scenario. In the last few months, British private equity house Candover closed its Asia operations and Merrill Lynch Global Private Equity closed its Japan operations, both because of the paucity of projects.


3i had set up shop in India in 5 and since then has invested in sectors like Media, Automotive, Construction, Power, Ports and Manufacturing. 3iís current investments in India include Krishnapatnam Port Company Ltd, OOH Media, Siro Clinpharm Private Limited, UFO Moviez Pvt Ltd (Mumbai) and Vijay Electricals.


3i Started with GBP 15m capital in 1945 and is today a truly global private equity firm, with GBP 9.6b of assets under management focusing on growth capital, mid-market buyouts and infrastructure. In recent times, 3i has also merged its Asian buyout division with its Asian growth capital division. 3i has specialist global teams in Oil, Gas and Power, Technology, Media & Telecoms, Business Services, Healthcare, Consumer, General Industrial and Financial Services.


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