3i Group plans to list 3i Quoted Private Equity, a newly-established, Jersey-incorporated, public closed-end investment vehicle on the London Stock Exchange.
The quoted business intends to build a portfolio of 'influential or controlling' stakes in small and mid-cap quoted companies, primarily in the UK and continental Europe. 3i, itself a listed entity, will act as investment adviser.
3i Quoted Private Equity (3i QPE) is expected to raise at least Gbp400m (US$791m), of which 45% of the amount raised will come from 3i Group. Funds raised from the placing are likely to be invested within an 18 month period, after which gearing will be used for further investments. The portfolio is expected to eventually comprise eight to twelve companies.
Alan Mackay, 3i partner and an adviser to 3i QPE, told Reuters that the fund's first investment is expected to be make by the third quarter of the year.
The fund's board of directors will be headed by David Tyler, chairman and former group finance director at GUS, who will work alongside Duncan Baxter, Richard Harwood and Antoine Clauzel. Harwood was founder and chief investment officer of Theta Enhanced Asset Management Limited and manager of the Irish Stock Exchange listed Orchard Funds; Baxter has been interim manager of the Royal Bank of Scotland's Jersey trust company and Merrill Lynch Investment Managers. Clauzel is currently operations director at 3i France.