3i Group Case

717 Words 3 Pages
Company Overview
3i Group Plc is a multinational investment firm managing private equity and venture capital. The company headquarter is located in London, United Kingdom with international presence in thirteen countries covering regions including Asia, Europe and Americas. The company was founded in 1945 by Bank of England and other major banks operating in Britain under the name of Industrial and Commercial Finance Corporation (ICFC) in order to provide financing to small and medium companies (3i, 2015). The formation of ICFC was inspired by the Macmillan Committee that was formed to inspect whether the British banking and financial system was helping or hurdling the British trade and industry, realized after the 1929 stock market crash. Identified in the report was the disparity between depositors, who asked for high rate of return on their investments and high liquidity and the industrial borrowers who desired low lending rates and long-term maturity (Frost, 1954). This disparity is commonly referred to as ‘Macmillan Gap’ and formed basis for the formation of Industrial and Commercial Finance Corporation (Stamp, 1931). The corporation was initially funded exclusively by major banks operating in Britain and The bank of England with share and loan capital amounting £45m. In 1970s ICFC and Finance for Industry (FCI)
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Infrastructure portfolio managed by the company is complementary to the Private Equity as the later focuses on high return and moderately high risk due to stock market investments whereas the former focuses on low risk infrastructure investments. This core business is focused on investing in PPP by managing third-party funds specifically in the emerging market of India. Infrastructure business composes of 14% of the firm’s proprietary capital with returns of 20% reported in

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