 3i has recently been looking to new markets for expansion |
Private equity group 3i has reported a 27% return on its investments after what it called an "exceptional year". 3i said it made a total return of �1.08bn in the year to March, with the value of its assets up 25% to �7.1bn.
The group added it would be returning �800m to shareholders, partly through issuing new shares.
Private equity firms have been in the spotlight recently, taking over businesses ranging from the AA to Birds Eye in the past year.
Private equity groups use a mixture of their own money and debt to buy firms which they feel are underperforming. They usually look for a profitable sale within three to seven years.
However, while the government says such companies boost the economy and create jobs critics dismiss them as asset strippers.
'High return'
"This has been an exceptional year for 3i," the firm said.
"The group has delivered a high return on shareholders' funds and a strong cash flow and, most importantly of all, has taken important steps to develop the business for the longer term."
Other companies owned by the group include the NCP carparks firm.
However, the buyout market has become increasingly competitive, prompting 3i to expand its international operations and boost investment in new markets.
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