3i Group πŸ‘πŸ‘πŸ‘ - iii - Stock Discussion

3i Group plc is a multinational private equity and venture capital company based in London, United Kingdom.

1 Like

13 billion company (investment trust). About 2 billion in Infrastructure rest is private equity.
One company represents 6 billion of assets.
Action a dutch company its valuation has incresed 31 fold.
Its a retailer a negative
A discounter a positive. Think Aldi lidl iceland and B and M.
Expanded from Holland into 8 countries. Increased its shops by 200 plus last year.
3i group (as opposed to 3i Infrastructure) have said they have no plans list or sell it.
3i portfolio

It has traded at a average of 14% premium this year. Presently trading at a 10% discount. Checking on Hargreaves Lansdown it was at one point this year on a 30% premium.
Investment trusts Private equity investment are valued independently and Conservatively. Conservatively because the investments are unlisted and therefore illiquid. The average increase to the illiquid unlisted valuation when they are sold is roughly 20%. That assumes they make it and don’t fail.
This i assume is the reason for the fall in all private equity investment trusts
https://www.google.com/search?q=private+equity+ponzi+scheme&oq=pri&aqs=chrome.0.69i59j69i61l2j69i59j69i61j69i65l2j69i57j35i39l2.3053j0j4&client=tablet-android-samsung-nf-rev1&sourceid=chrome-mobile&ie=UTF-8

The above can be simplified
Private equity firms are buying off other private equity companies at too high a price. To much money chasing to few investments.
I am not sure this is relevant to investment trusts as the valuation are done independently. Feel free not to quote me!

AIC Private equity sector other than one company all are at big discounts
https://www.theaic.co.uk/aic/find-compare-investment-companies?sec=PE&sortid=DiscFairCum&desc=true
Do plenty of research on the above investment trusts. Some are being wound up. Symphony International directors are not working for the benefit of shareholders.

It is always best to check actual dividends and especially don’t trust 5 year average increase in dividends without checking.
Also special dividends are never included in the headline dividends. So it needs to be checked as private equity often pay special dividends when they sell a company.
3i doesn’t do that its aim is to increase dividends or at least hold them at the previous years amount.
They achieved this since 2010

Over the last 5 years they held it one year (covid) and increased it in the other 4. The average was 11.9% increase each year. Last year was a 20% increase.

1 Like

Opps forgot 28% share price gain over 5 years. If you take into account the discount not terrible.

76% share gain over 5 years.
Has had a spectacular share price rise recently. I say spectacular only in relation to other private equity investment trusts. Which have barely moved. It’s latest NAV update resulted in a 10% rise in 2 days.

2 Likes

I will continue to buy 3i all the way up to a 15% premium as they are normally on a 20% plus premium. I will start to sell on 30% premium…or maybe not. Someone on another site said he has owned them for 20 years and they went as high as an 80% premium.
Probably a long term hold.

1 Like

Significant increase in NAV last week. Putting the shares back into a discount. Sold large holding last week and increased my holdings in 3i by 150% in ISA equal to the amount I have in my general account. Will probably keep them until early April sell put money into ISA next tax year and buy…I mustn’t buy 3i I have enough… maybe just a few!!

1 Like

It’s surprising how 3i flies under the radar. Its 10-year share price return is ahead of any other investment trust – despite a torrid 12 months for PE generally – plus it tends to pay a 2-3% dividend.

It’s on my Isa shopping list for the next financial year. It is highly concentrated though – I think more than 50% is in Action – and it has relatively heavy gearing, so I’m not 100% sold yet.

The costs are quite high as well…

1 Like

Not sure the fees are that high using AIC look quite Reasonable think it’s now top of the table over 1 year on AIC. More importantly is action it just keeps on growing at extraordinary rate. They reckon they can increase the amount of shops in Europe by 400%
Average dividend increase over 5 years 11.9%. this year up 20%.
No rush to sell.
Dividend 2.84% Hargreaves Lansdowne.

Reference gearing the amount of money action is throwing off should cover any gearing. Recently sold a company for a 50% uplift. 200 million plus.

1.2% management fees on Hargreaves Lansdowne. 1.08% on AIC.

Are they making any PE classed as complex investments by freetrade and blocked?

What makes you say this? :thinking:

Freetrade blocked 2 of 3 Vietnam trusts saying they were to complex an investment for the thivkos!! investors using freetrade. I thought they may do the same with private equity.
In fact I thought they had already done so with some private equity IT’s??

1 Like

Fair point. I think Apax was one of those removed.

It’s a shame that the range of trusts on offer has been restricted.

But I’d imagine the likes of III, HVPE, NBPE and HGT will be safe – I certainly hope so.

1 Like

I have decided to buy more in 3i in my ISA just in case but have yet to sell the ones in my general account. May keep them till April. Just checked 3i 16% of my portfolio. I can live with that.I have got HG capital but it’s yet to show any life.

This was an interesting read: