3i sells clutch of venture investments

LONDON (Reuters) - Listed private equity firm 3i Group (III.L) is to sell ten of its start-up investments as part of plans to sell its venture portfolio to concentrate on buyouts and investments in mid-sized companies.

Cipio Partners, which concentrates on buying packages of assets from institutional investors and private equity firms, said on Monday it had agreed to buy the European venture capital investments.

The transaction is valued at between 17 million and 19 million euros (15-16.8 million pounds), according to a person familiar with the matter.

3i's recently-appointed chief executive Michael Queen last month said the group hopes to fully exit its venture and small minority investment portfolios over the next year as it looks to reduce its 2.1 billion pound debt pile by around 1 billion in the next 12 to 15 months.

The group's venture portfolio, which concentrates on early-stage technology and healthcare investments, was last valued in May 2008 at 655 million pounds.

A spokesperson for 3i said the package of assets sold to Cipio were largely focussed on the German IT sector.

Private equity firms Coller Capital and HarbourVest were reported by the Independent on Sunday as considering bids for the entire venture portfolio.

Earlier this month 3i sold off its remaining stake of about 4 percent in specialty pharmaceutical company ProStrakan (PSK.L).

($1=.6896 POUND)

($1=.7748 Euro)

(reporting by Simon Meads; editing by Guy Dresser)

(simon.meads@thomsonreuters.com; +44 20 7542-9969; Reuters Messaging: simon.meads.thomsonreuters.com@reuters.net))