Mission Statement, Vision, & Core Values (2024) of 3i Group plc

A Brief History of 3i Group plc

3i Group plc, a leading international investor, was established in 1945 in the United Kingdom. Originally set up as a government initiative to stimulate the economy post-World War II, the company went public in 1994, listing on the London Stock Exchange. This marked a significant shift in its operational model, allowing it to raise capital from a broader investor base.

Over the years, 3i has built a diverse portfolio spanning various sectors, including technology, healthcare, and infrastructure. As of March 2023, the company reported a net asset value (NAV) of £3.2 billion, reflecting its strong performance in the private equity market.

In 2010, 3i made a notable investment in the European mid-market segment, establishing itself as a key player in the sector. By 2021, approximately 42% of its total portfolio was allocated to this area.

3i's strategic focus on operational improvement and value creation has yielded impressive results. In FY 2022, 3i reported a total return of 18% on shareholders’ equity, driving the NAV per share to £3.37.

The company has maintained a disciplined approach toward investment, with a strong emphasis on sustainability and responsible investing. In its latest impact report for 2023, 3i noted that its portfolio companies contributed over £1 billion to the UK economy through job creation and innovation.

In terms of market performance, shares of 3i Group plc have shown resilience and growth. By October 2023, the share price stood at approximately £42.50, up from around £35.00 in early 2022, reflecting a growth rate of 21.4%.

3i's commitment to innovation is also evident in its strategic partnerships and acquisitions. In 2022, the company acquired a majority stake in a leading technology firm for £500 million, further diversifying its portfolio.

Overall, 3i Group plc has successfully adapted to changing market conditions while maintaining its core investment philosophy focused on creating long-term value for its shareholders and stakeholders.

A Who Owns 3i Group plc

3i Group plc is a public limited company traded on the London Stock Exchange under the ticker symbol "III." As of October 2023, the largest shareholders of 3i Group are a mix of institutional investors, asset managers, and retail shareholders.

The table below provides a breakdown of the principal shareholders of 3i Group plc, highlighting their ownership percentage based on the most recent disclosures available:

As of the latest financial report for the year ended March 31, 2023, 3i Group plc reported a total net asset value of £2.4 billion and an increase of 16% in net asset value per share to £12.45.

3i Group actively manages a diversified portfolio, which includes investments in sectors such as consumer, health, and technology. The company’s investment strategy has resulted in robust returns. For the financial year 2023, 3i Group declared a total return of £425 million, translating into a return on equity of 19%.

Additionally, the company has consistently provided attractive dividends to its shareholders. For the fiscal year 2023, the dividend paid was £0.225 per share, demonstrating an increase of 12% compared to the previous year.

In terms of stock performance, 3i Group plc's stock price has shown volatility in the past year, with a 52-week range of £9.85 to £13.00. As of October 2023, the stock is trading at approximately £12.60, reflecting a year-to-date gain of 8.5%.

Overall, ownership of 3i Group plc is characterized by significant institutional investment, while retail investors also maintain a substantial presence, contributing to the company’s strong capital base and continued growth strategy.

3i Group plc Mission Statement

3i Group plc is a leading international investor focused on mid-market private equity and infrastructure. The company aims to generate superior returns for its shareholders by identifying and investing in businesses with strong growth potential. Its mission statement emphasizes a commitment to building sustainable businesses through strategic partnerships and operational enhancements.

The group operates primarily in three sectors: Consumer, Healthcare, and Technology. 3i focuses on high-quality assets and incorporates environmental, social, and governance (ESG) criteria into its investment process.

As of September 2023, 3i Group reported a portfolio value of £2.5 billion across its investments. The company achieved a total return of 26% in the most recent financial year, driven by successful exits and robust growth within its portfolio companies. The average holding period for investments is typically between 3-5 years.

3i's mission is further reflected in its investment returns. For the six months ending September 2023, 3i recorded a dividend of 12.6 pence per share, marking a distribution yield of 3.5% based on the latest stock price. The company’s total net assets were valued at approximately £3.9 billion.

In recent years, 3i Group has increasingly focused on sustainable investments, with over 60% of its current portfolio adhering to its defined ESG standards. This strategic approach aligns with global trends towards responsible investing and reflects the company's dedication to long-term value creation.

The investment strategy of 3i Group is supported by an experienced management team, leveraging extensive industry knowledge. In 2023, the company employed over 150 professionals across its offices in London, New York, and Amsterdam, enhancing its ability to source and manage investment opportunities worldwide.

How 3i Group plc Works

3i Group plc is a leading international investment manager, focusing on private equity, infrastructure, and debt management. The company operates primarily in Europe and North America, with a strong emphasis on investing in mid-market businesses across various sectors.

• Investment Focus: 3i Group targets sectors including consumer, healthcare, financial services, and industrials. Their strategy centers on acquiring companies with strong growth potential.
• Investment Lifecycle: The investment process involves sourcing deals, conducting rigorous due diligence, and working alongside management teams to drive growth.
• Portfolio Management: 3i actively engages in managing its portfolio of investments, providing operational expertise and strategic support to drive value creation.

As of September 2023, 3i Group reported a portfolio value of approximately £11.1 billion across its investment segments.

Financial Performance

In the financial year ending March 2023, 3i Group reported a strong performance with total income reaching £862 million, a notable increase from the previous year. This performance was bolstered by robust realizations and investments across various sectors.

3i’s net asset value (NAV) stood at £3.4 billion, with a NAV per share of £12.84. The company also recorded an annualized total return of 14% over a five-year period.

Investment Breakdown

3i Group's investment strategy involves both equity and debt investment, with a significant portion allocated to private equity.

Recent Investments

In the recent financial year, 3i made several strategic investments, including:

• £640 million in the healthcare company, W.A. de Groot, focusing on expanding its market reach.
• £340 million invested in a leading consumer goods brand to enhance product development.
• £250 million in technology infrastructure to leverage digital transformation trends.

3i also completed successful exits, generating total proceeds of £1.1 billion in the same period, reflecting the strong demand for quality assets.

Market Position and Valuation

As of October 2023, 3i Group's market capitalization is approximately £12.5 billion. The share price has exhibited resilience, trading at around £13.10, indicating strong investor confidence.

The company maintains a strong balance sheet, with a debt-to-equity ratio of 0.5, positioning it favorably for future growth and investment opportunities.

How 3i Group plc Makes Money

3i Group plc is a leading international investment manager that primarily invests in private equity, infrastructure, and debt management. The firm generates revenue through various channels, mainly through fees, carried interest, and income from investments.

As of the latest financial reports for the year ending March 31, 2023, 3i Group reported a total return of £1.1 billion, translating to a return on equity of 26%. This figure reflects the performance of its investment portfolio, which is diversified across sectors such as consumer, healthcare, and technology.

Revenue Streams

• Management Fees: 3i Group earns management fees from its funds, which amounted to £156 million in the fiscal year 2023.
• Carried Interest: The carried interest for 3i Group reached £179 million in the same period, representing a significant portion of its revenue due to successful exits and appreciation in asset values.
• Investment Income: The company generated £121 million in investment income from its active portfolio.

Investment Portfolio

3i Group's investment portfolio is composed of various assets across different sectors. As of March 31, 2023, the total portfolio value stood at £10.6 billion, distributed as follows:

Performance Metrics

3i Group's financial performance is closely monitored through several key metrics:

• Net Asset Value (NAV): As of March 31, 2023, the NAV per share was £10.50, reflecting a year-on-year increase of 12%.
• Dividend Payout: The company declared a final dividend of £0.25 per share, bringing the total dividend for the year to £0.50 per share.
• Total Expenses: The total operating expenses for the year were £99 million, a figure that highlights the company's focus on managing costs effectively.

Recent Investments

3i Group has made strategic investments across various companies to enhance its portfolio. Notable investments made in 2022 and 2023 include:

• Acteon Group: Acquired for £1.4 billion, providing exposure to the energy sector.
• Chyron: Investment of £300 million to capitalize on growth in media technology.
• Greenfield Global: A £200 million investment focusing on sustainable energy solutions.

In conclusion, 3i Group plc utilizes a blend of management fees, carried interest, and income from investments to generate revenue. Its diversified portfolio and strategic investments position it for continued growth and profitability.