3i Infrastructure, a publicly listed UK infrastructure fund advised by private equity firm 3i, made net investments of £103 million ($190 million, €126 million) in the first half of its 2008-2009 financial year, according to a pre-close period briefing published today.
The investment activity was mainly comprised of a further investment of £87.6 million into a portfolio of three UK junior debt instruments that include electricity provider Viridian, water utility Thames Water and broadcast provider NGW/Arqiva. The fund had previously invested £34.2 million in the companies’ junior debt instruments.
Additionally, 3i Infrastructure made further investments of £12.4 million in secondary fund Infrastructure Investors, £4.7 million in school public finance fund Alpha Schools and £1.9 million in university accommodation public finance fund Alma Mater. In July 3i Infrastructure also sold its entire interest in the Alma Mater fund for a consideration of £41.9 million.
The fund also was rewarded a £3.2 million redistribution from its £250 million commitment to the 3i India Infrastructure Fund. The redistribution resulted from initial investments made by the fund prior to its closing on £1.2 billion in April and will remain available for drawdown by the fund.
Overall, these commitments bring the fund’s total investment activity to £546 million since its listing on the London Stock Exchange in January 2007. Including undrawn commitments, 3i Infrastructure has invested 80 percent of its IPO and subsequent placement proceeds of £700 million and £115 million, respectively.
The fund’s objectives are to have 100 percent of the IPO proceeds invested within two years of receipt and to achieve a 12 percent total return on the initial net proceeds.
3i Infrastructure Chairman Peter Sedgwick said in a statement that “the company’s portfolio is generating returns in line with expectations”. A spokesman declined to comment further.
The full half year results will be made public in November.
3i Infrastructure shares finished the day down 6.5 percent at 107.5 pence in Monday trading.