Our portfolio continues to deliver superior returns through the economic cycle.
Bernardo Sottomayor
Managing Partner and Head of European Infrastructure,
3i Investments plc
Realisation Valorem
In January 2025, we successfully sold our 33% stake in Valorem, a leading independent renewable energy company. During our investment period, the company transitioned from a pure developer to an integrated owner-operator, usually retaining ownership of developed projects and building a base of long-term predictable cash flows. The exit crystallised a gross IRR of 21% and a 3.6x money multiple.
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.
Portfolio value
£3.8bn
Assets
11
Data traffic is growing exponentially as high bandwidth consumer and business applications drive data consumption. Subsea cables carry an estimated 98% of all internet traffic. Our portfolio company FLAG is taking advantage of the acceleration in digitalisation trends.
We invest in high-quality renewable energy businesses that operate in growing markets with strong earnings potential. Our investments have consistently followed this strategy successfully to grow their installed asset bases with revenues secured by contracts, while identifying new opportunities for expansion.
We create value from our investments through the Investment Manager’s active asset management approach. Through this approach, the Investment Manager partners with our portfolio companies’ management teams to develop and execute a strategy to create long-term sustainable value. Examples of this partnership include: developing strategies that support investment in the portfolio company’s asset base over the long term; continued improvements in operational performance; and establishing governance models that promote an alignment of interests between management and stakeholders. We develop and supplement management teams, often bringing in a non-executive chair early in our ownership.
The Company is managed by an experienced and well-resourced team. The European infrastructure team was established by 3i Group in 2005 and now comprises approximately 40 people, including over 20 investment professionals.
3i Group has a network of offices, advisers and business relationships across Europe. The Investment Manager leverages this network to identify, access and assess opportunities to invest in businesses, on a bilateral basis where possible, and to position the Company favourably in auction processes.
We have built a strong reputation and track record as investors by investing responsibly, managing our business and portfolio sustainably, 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 Boards seeks to maintain through a transparent approach to corporate reporting and a clear and open dialogue with stakeholders.
Established investment and asset management processes are supported by the Investment Manager’s comprehensive set of best practice policies, including governance, conduct, cyber security and anti-bribery.
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.
17%
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.
£22m
Follow-on investment in the financial year net of syndication proceeds
Driving value from our portfolio through our engaged asset management approach. Delivering growth through investment in platforms with growth potential.
£392m
Total growth capital expenditure invested across the portfolio in 2024
Minimising return dilution to shareholders from holding excessive cash, while retaining a good level of liquidity for future investment.
£644m
Total liquidity
Ensuring that our investment decisions and asset management approach consider both the sustainability risks and opportunities presented.
4
Companies with submitted or validated science-based targets
We performed ahead of target and materially improved our liquidity position.
James Dawes
CFO, 3i Infrastructure
We support and encourage portfolio companies to improve their sustainability performance over time resulting in long-term value creation.
With our capital and expertise, we help our portfolio companies capture opportunities to play a role in the energy transition.
Anna Dellis
Partner, 3i Investments plc
Climate change and the transition to the low-carbon economy are significant macroeconomic trends impacting the sectors in which we invest.
In March 2024, 3i Group plc set science-based emissions reduction targets, which were validated by the SBTi. These targets cover both direct emissions and downstream indirect emissions associated with all the portfolio companies that 3i manages. Throughout the year, the Investment Manager has communicated these targets to portfolio companies and has supported them in developing the business case for setting their own science-based emissions reduction targets.
