LONDON Feb 25 British private equity group 3i
said on Monday its U.S. debt management arm had raised
a $500 million fund to invest in corporate debt and loans to
back private equity buyouts.
The collateralised loan obligation fund, Jamestown II, is 3i
Debt Management U.S.'s second since it was established in August
last year as a joint venture with U.S. fund manager WCAS Fraser
Sullivan Investment Management.
London-listed 3i was set up after World War Two to play a
role in financing the reconstruction of Britain, but in recent
years private equity has produced lacklustre returns and it has
been shifting its focus to debt and infrastructure investment.
"Jamestown II is further evidence of the progress we are
making to expand our Debt Management business and generate
further income from third-party assets under management," 3i
Chief Executive Simon Borrows said in a statement.
3i said the fund, a refinancing of a $400 million Fraser
Sullivan fund which had reached the end of its two-year
reinvestment period, was made up of $460 million of investment
grade debt and $50 million of subordinated notes.
Due to transaction costs and the fact that some of these
were issued at a discount to par, the fund will have total
assets under management of $500 million to focus on investing in
U.S. corporate debt and senior secured loans backing private
equity buyouts in the United States.
Shares in 3i were up 0.6 percent at 310.5 pence by 0932 GMT.