Annual report
highlights 2024

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Our purpose is to invest responsibly in infrastructure, delivering long-term sustainable returns to shareholders and having a positive influence on our portfolio companies and their stakeholders.

Hear more about what this means

Scott Moseley and Bernardo Sottomayor, 
Managing Partners and Co-Heads of European Infrastructure 3i Investments plc

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Scott And Bernado

Megatrends

Megatrends significantly influence our world, affecting decision-making and changing the demands placed on our economy and services. Identifying the potential for growth across businesses, sectors and countries serves as a key driver in our investment decision-making and asset management processes.

Download PDF to read more about Megatrends

Renewable energy generation

  • Infinis Portfolio
  • Valorem Portfolio
  • Futurebiogas Logo

Electrification/energy transition

  • Joulz Portfolio
  • TCR 1
  • Esvagt Logo 1
  • Infinis Portfolio

Shared Resources

  • TCR 1
  • SRL Logo

Automation and digital operations

  • Tampnet Portfolio
  • GCX

Increasing connectivity and demand for bandwith

  • Tampnet Portfolio
  • Dns Portfolio (1)
  • GCX

Demand for healthcare

  • Ionisos 500X367

Smart cities

  • SRL Logo
  • Dns Portfolio

Urbanisation

  • Joulz Portfolio
  • SRL Logo

High quality, diverse and differentiated portfolio.

Portfolio value

£3.8bn

Assets

12

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Portfolio Wheel Mobile
Portfolio Wheel

Megatrends

  • Energy transition42%
  • Digitalisation22%
  • Renewing essential infrastructure22%
  • Demographic change8%
  • Other critical infrastructure6%

Our business model creates long-term value for stakeholders.

Download PDF for the full business model

Enablers

The Company is managed by an experienced and well-resourced team. The European infrastructure team was established by 3i Group plc in 2005.
Enablers 1
3i Group has a network of offices, advisers and business relationships across Europe. The Investment Management team leverages this network to identify, access and assess opportunities to invest in businesses.
Enablers 2
We build close partnerships with our portfolio companies’ management teams to develop and execute a strategy to create long-term value in a sustainable way. Examples include developing strategies, improving operational performance and establishing governance models that promote alignment between management and stakeholders.
Enablers 3
We have built a strong reputation and track record as investors by investing and managing our business and portfolio companies responsibly and by carrying out activities to high standards of conduct and behaviour. 3i has earned the trust of shareholders, other investors and investee companies, which the Board seeks to maintain through transparent corporate reporting and clear and open dialogue with stakeholders.
Enablers 4
Our dedicated ESG team enables us to identify, monitor and realise the value-creation opportunities linked to sustainability for relevant portfolio companies more effectively. The team supports each portfolio company to enhance their ESG maturity.
Enablers 5
Established investment and asset management processes are supported by the Investment Manager’s comprehensive set of best practice policies, including governance, conduct and anti-bribery.
Enablers 6
The Company’s flexible funding model seeks to maintain an efficient balance sheet with sufficient liquidity to make new investments or support portfolio companies. Since FY15 the Company has raised equity three times and returned capital to shareholders twice following successful realisations.
Enablers 7

How we create value

Wheel 1

Buy well

  • Effective use of 3i’s network
  • Comprehensive due diligence
  • Consistent with return/yield targets
  • Fits risk appetite

Strong governance

  • Make immediate improvements
  • Board representation
  • Appropriate Board composition
  • Incentivise and align management teams

Optimise strategy

  • Agree strategic direction
  • Develop action plan
  • Right capital structure to fund growth plan
  • Enhance ESG maturity

Execute plan

  • Ongoing support
  • Monitor performance
  • Review further investment opportunities
  • Facilitate and execute M&A

Realisation

  • Position business and enhance infrastructure characteristics to maximise exit value
  • Long-term view but will sell to maximise shareholder value

Our strategy enables us to deliver an attractive mix of income yield and capital appreciation.

Download PDF to read our Objectives and KPIs

Delivering an attractive mix of income yield and capital growth for shareholders. Investing in a diversified portfolio in developed markets, with a focus on the UK and Europe.

16%

Largest single investment by value

Focusing selectively on investments that are value-enhancing to the Company’s portfolio and with returns consistent with our objectives.

£104m

Follow-on investment in the financial year

Driving value from our portfolio through our engaged asset management approach. Delivering growth through platform investments.

5

Follow-on investments in portfolio companies in the financial year

5

Portfolio companies refinanced in the financial year

Minimising return dilution to shareholders from holding excessive cash, while retaining a good level of liquidity for future investment.

£395m

Total liquidity

Ensuring that our investment decisions and asset management approach consider both the risks and opportunities presented by sustainability.

2

Companies with validated science-based targets

Consistent delivery against our target NAV return of 8% to 10% per annum.

Total return on opening NAV

11.4%

NAV

£3342m

Full year divided per share

11.90p

+6.7%

Total return for the year

£347m

2023: £394m

NAV per share

362.3p

2025 Target dividend per share

12.65p

+6.3%

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We delivered another year of outperformance and an increased dividend.

James Dawes
CFO, 3i Infrastructure

Colleagues 2

A top quartile track record.

Consistent growth in NAV per share since IPO.

Top Quartilegraph 1 (1)
Top Quartilegraph 2 (1)
AR Colleagues Image (Mobile)

We have an effective and integrated approach to ESG matters.

Throughout FY24 the Investment Manager’s dedicated ESG team has continued to work closely with the investment teams and the portfolio companies’ management teams to enhance each portfolio company’s ESG maturity.

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more about Sustainability

ESG topics driving initiatives in the year

  • Worked with portfolio companies to measure and disclose their GHG emissions, including Scope 3, and collaborated with them to increase data robustness.

  • Provided bespoke support to companies to undertake decarbonisation aligned with the objectives of the Paris Agreement, typically through setting science-based targets.

  • Requested that each portfolio company undertake a climate risk assessment using scenario analysis.
  • Requested that each portfolio company prioritise health and safety by making it the first Board agenda item.

  • Provided training to executives of the Manager with portfolio board responsibilities on health and safety board effectiveness and best practices to foster a strong health and safety culture.
  • Requested that portfolio companies consider setting an appropriate strategy and goals to promote gender equity within their respective businesses.
  • Asked portfolio companies to implement good governance through our required 
set of policies and procedures.

  • Requested that portfolio companies develop a sustainability strategy with appropriate KPIs.
  
  • Introduced ESG KPIs into variable remuneration and long-term incentive plans for portfolio company senior management executives, where appropriate.

  • Supported portfolio companies to prepare for increased ESG disclosure regulations.
  • Worked with portfolio companies to measure and disclose their GHG emissions, including Scope 3, and collaborated with them to increase data robustness.

  • Provided bespoke support to companies to undertake decarbonisation aligned with the objectives of the Paris Agreement, typically through setting science-based targets.

  • Requested that each portfolio company undertake a climate risk assessment using scenario analysis.
  • Requested that each portfolio company prioritise health and safety by making it the first Board agenda item.

  • Provided training to executives of the Manager with portfolio board responsibilities on health and safety board effectiveness and best practices to foster a strong health and safety culture.
  • Requested that portfolio companies consider setting an appropriate strategy and goals to promote gender equity within their respective businesses.
  • Asked portfolio companies to implement good governance through our required 
set of policies and procedures.

  • Requested that portfolio companies develop a sustainability strategy with appropriate KPIs.
  
  • Introduced ESG KPIs into variable remuneration and long-term incentive plans for portfolio company senior management executives, where appropriate.

  • Supported portfolio companies to prepare for increased ESG disclosure regulations.

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