Private-equity investor 3i Group said yesterday the value of its biggest investments dived in the quarter to December 31, sending its shares briefly to a new low.
It said the value of its 50 largest investments had slumped by an estimated 21% during the period, excluding currency gains.
Its third biggest investment is in Aberdeen oil and gas operator Venture Production and worth £126million at September 30 last year.
The group said the 50 largest investments made up about 61% of its portfolio value of £5.934billion as at September 30, although this did not include any investments made since then.
A spokeswoman said, however, it was not possible to comment on individual investments such as Venture, although it was likely some would have gone up in value and some down.
Finance director Julia Wilson said that since 3i’s half-year results in November conditions in the economy had been very challenging and credit markets had remained dislocated.
She said: “We are publishing the value of our largest assets to assist investors in understanding some of the implications for 3i. We have continued to see some earnings growth during the period but it is too early to tell how current conditions will affect the near-term outlook. We are planning on the basis that the current business environment will continue for a sustained period.”
Also yesterday 3i named infrastructure head Michael Queen as chief executive, succeeding Philip Yea, who has led the company since July 2004. A spokeswoman said Mr Yea’s departure, expected in March, was a mutual decision.
Shares in 3i hit a record low at 229.5p in early trading, before recovering to close down 3.5p at 251.25p.
The company also said it recorded realisations of £345million and made new investments worth £173million in the three months to December 30.