Private equity group 3i Group PLC (LON:III) announced it is combining its Growth Capital business, which acquires small stakes in companies, with the Buyout business to form one Private Equity business.
This will mean that 3i has two distinct business lines, Infrastructure and Private Equity. As discussed at the year-end, 3i also continues to explore expansion into adjacent areas such as debt management.
The decision to merge the two business lines and run the Private Equity business on a regional model reflects the evolution of the private equity market, the group said in a statement.
These two activities have increasingly converged in terms of their investment process and the nature of the investors they attract. It therefore makes sense to run them as a single unit with a more regional focus, 3i said. The move to a more regionally focused Private Equity business will start immediately.
"Having transformed our financial position and improved our performance, we are now organising the business for growth. We have the advantage of being strong regionally and our sector teams have been working increasingly together across our buyouts and growth businesses for some time," chief executive officer Michael Queen said.
Jonathan Russell, managing partner Buyouts, has decided to leave after 24 years at 3i.
The news was picked up by many City watchers. City AM called 3i’s restructuring the biggest reshuffle since CEO Queen took over from Philip Yea in 2009.
“But the overhaul has left a bitter taste in the mouth of the group’s heavy hitter, Jonathan Russell, one of Europe’s best known buy-out figures. He joined 3i in 1986 and became head of buy-outs in 1999,” it commented.