Private Equity

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3i Group

3i Group was founded in 1945 as a state-backed initiative to provide long-term capital to British industry, and was privatized in 1994. Simon Borrows became...

3i Group

3i Group was founded in 1945 as a state-backed initiative to provide long-term capital to British industry, and was privatized in 1994. Simon Borrows became CEO in 2012 after leading the firm's buyout and infrastructure teams; he previously worked at Schroders and ABN AMRO. The firm's ownership structure — a publicly listed investment trust — gives it the unusual ability to manage capital without the fixed-life constraints of conventional private equity. The firm allocates across private equity, infrastructure, and debt, targeting mid-market buyouts and growth equity in Europe, North America, and Asia. Its portfolio includes Action, a European discount retailer acquired in 2011 and held as its largest position, and Royal Sanders, a Dutch personal care company. Infrastructure holdings span renewable energy, transport, and digital infrastructure across the UK and continental Europe. Geographic exposure: roughly 60% Europe, 20% North America, and the balance in Asia and Latin America. 3i employs about 250 professionals across offices in London, Paris, Frankfurt, New York, Hong Kong, Mumbai, Beijing, and São Paulo. In recent years, the firm has increased its focus on infrastructure, including a dedicated infrastructure fund raised in 2021. Its debt arm, 3i Debt Management, provides mezzanine and junior debt financing. The firm also operates a philanthropic foundation, 3i Foundation, with a focus on education and social enterprise. Its permanent capital model — unique among listed private equity firms — allows 3i to hold assets for extended periods, avoiding the forced-sales dynamic that pressures conventional funds. The firm does not have a controlling family or single beneficiary, instead answering to public shareholders who trade the shares on the London Stock Exchange.

Website
3i.com

General information

Firm type

Publicly listed private equity and infrastructure investment firm

Year founded

1945

AUM

$20.5B (per 3i Group plc annual report, 2023)

Location

Region

Europe

Country

United Kingdom

City

London

Corporate office

London, United Kingdom

Additional offices

Paris · Frankfurt · New York · Hong Kong · Mumbai · Beijing · São Paulo

Principals

Simon Borrows

Chief Executive Officer

Richard Laing

Chairman

Jennifer Dunstan

Chief Financial Officer

Sector focus

Private EquityInfrastructureGrowth CapitalBuyoutsDebt

Frequently asked questions

How does 3i Group's permanent capital structure affect its investment strategy?

As a publicly listed investment trust, 3i Group is not bound by the 10-year fund life typical of private equity. This allows the firm to hold assets like Action — acquired in 2011 and still held — for longer durations to capture full value creation. The structure also permits a more opportunistic approach to exits without pressure to return capital to LPs on a fixed schedule.

What is the relationship between 3i Group and its portfolio companies?

The firm takes majority or significant minority stakes in mid-market companies, typically investing £20M–£200M per deal. 3i provides operational support through its in-house operating partners and advisory teams, focusing on buy-and-build strategies, geographic expansion, and digitization. It is a hands-on, active owner with board representation in most holdings.

Which investment stages and sectors does 3i target?

3i targets mid-market buyouts and growth equity in private equity, and core-plus infrastructure. Key sectors include business services, healthcare, consumer goods (with a large position in Action), renewable energy, transport, and digital infrastructure. The firm avoids early-stage venture and distressed debt.

Is 3i Group a family office?

No. 3i Group is a publicly traded company (LSE: III) and operates as an asset manager on its own balance sheet. It has no family beneficiaries or single controlling shareholder. Its capital base comes from public markets, and it is regulated as a listed company under UK corporate governance rules.

How does 3i's infrastructure strategy differ from its private equity arm?

The infrastructure division invests in assets with long-term contractual cash flows, such as renewable energy projects, toll roads, and digital infrastructure. These investments are generally lower-risk than private equity buyouts and are financed with a mix of equity and project-level debt. 3i typically holds infrastructure assets for 15–25 years, compared to 5–10 years in private equity.

What geographic regions does 3i prioritize?

The firm has a primary focus on Western Europe — where it generates roughly 60% of returns by capital allocation — followed by North America (20%), with the remainder spread across Asia (Mumbai, Hong Kong, Beijing) and Latin America (São Paulo). Newer geography emphasis includes direct investment in India and Brazil.

How does 3i's compensation and alignment compare to traditional private equity firms?

Unlike partnership-based private equity firms, 3i's senior management receives a mix of base salary, annual bonus, and long-term incentive plans tied to share price and net asset value growth. This aligns with public shareholders rather than LPs and generates a lower absolute compensation multiple than firms like KKR or Blackstone, as disclosed in annual reports.

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