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1. Company Snapshot

1.a. Company Description

3i Group plc is a private equity firm specializing in mature companies, growth capital, middle markets, infrastructure, and management leveraged buyouts and buy-ins.The firm also provides infrastructure financing and debt management.For debt management, it invests in senior and mezzanine corporate debt in typically large and private companies in United Kingdom, Europe, Asia, and North America.


It makes private equity investments in business and technology services, financial services, consumer, healthcare, consumption and distribution, media and telecom, renewable energy, wind, and industrial sector.Within business and technology services, the firm seeks to invest in sub sectors such as testing, inspection and certification; BPO and consultancy; human capital including staffing, governance, risk and compliance, services to pharmaceutical companies, vertical application software, education and training businesses; facilities management; support services to industrial sectors such as oil and gas and utilities; human resources outsourcing and advising; recruitment; logistics and infrastructure support services including distribution, waste, and rental.In the consumer sector, it focuses on polarization, health and wellness, ageing population, millennials, consumer goods; e-commerce; retail; food and drinks; and leisure.


In the healthcare sector, the firm focuses on pharmaceuticals and biotechnology including specialty pharma, generics / OTC, drug delivery, and animal health; healthcare Services including activities such as elderly and specialty care, including caring for people in their own homes, in hospital and in community facilities, as well as operational services such as outsourced support, clinical services and B2B contract services; medical devices and technology including devices, medical equipment and consumables, diagnostics, and healthcare IT.In the industrial sector, it focuses on automotive, chemicals, construction and building products, electronics and electrical components, flow control and filtration, life science manufacturing, mobility, packaging, software, oil, gas and power.Through 3i BIFM Limited and 3i Infrastructure plc the firm makes infrastructure investments where it focuses principally on the utilities including energy transmission and storage, electricity and gas distribution, water, power generation, and communication network; transportation including airports, ports, ferries, toll roads, and rail; and social infrastructure sector including primary and secondary PFI, public private partnerships, healthcare, education, and government accommodation.


In infrastructure it invests primarily in utilities, transportation and social infrastructure in the United Kingdom, France, Italy, Europe, and Ireland.The firm prefers to invest in companies across Europe, France, United States, South America, and Asia.It seeks to make new investments in Northern Europe and North America.


The firm typically invests between €5 million ($5.59125 million) and €300 million ($335.475 million) in companies with an enterprise value typically between €100 million ($111.825 million) and €500 million ($559.125 million) and sales value between €80 million ($89.46 million) and €1500 million ($1677.38 million).It seeks to take either majority or minority stakes.It seeks to take a board seat in its portfolio companies with regards to infrastructure investments.


The firm invests through a combination of third-party and proprietary capital.It invests through its personal capital.3i Group plc was founded in 1945 and is based in London, United Kingdom with additional offices across Europe, North America, and Asia.

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1.b. Last Insights on III

The recent 3-month performance of 3i Group plc has been impacted by evolving analyst perspectives and macroeconomic concerns. A slight decrease in fair value estimate from £46.65 to £46.07 reflects reduced revenue growth expectations and a rise in discount rates. Despite a 13% total return and significant NAV growth reported in the Q2 2026 earnings call, concerns about valuation and macroeconomic risks persist. Analysts continue to scrutinize the company's disciplined capital allocation and stake in a leading European discount retailer.

1.c. Company Highlights

2. 3i Group's Strong H1 Performance Driven by Action's Growth

3i Group reported a 13% total return for the half-year, with a net asset value per share of GBP 28.57, up from GBP 22.61 the previous year. The private equity portfolio delivered a 14% gross investment return, driven by strong performances from Action and Royal Sanders. The company's actual EPS came out at 1.82, beating estimates of 1.43. Action, a 62.3%-owned subsidiary, saw net sales rise 17.4% in the first 9 months, with operating EBITDA up 16.3% to GBP 1.563 billion. The like-for-like sales growth was 5.7% year-to-date.

Publication Date: Nov -14

📋 Highlights
  • Total Return & NAV Growth:: 3i Group achieved a 13% total return, boosting net asset value per share to GBP 28.57 (vs. GBP 22.61 prior year).
  • Private Equity Portfolio Performance:: Generated 14% gross investment return, fueled by Action’s 17.4% sales growth and GBP 1.563 billion EBITDA (16.3% increase).
  • Action Shareholding Expansion:: Increased ownership in Action to 62.3% via GBP 755 million investment from GBP 944 million distribution.
  • Infrastructure Segment Growth:: 14% rise in 3iN share price, alongside GBP 1.6 billion liquidity and 3% net debt gearing (GBP 772 million debt).

Valuation Metrics

With a P/E Ratio of 6.37 and an EV/EBITDA of 6.7, 3i Group's valuation appears reasonable considering its strong growth prospects. The company's ROE is 21.67%, indicating a high return on equity. The Dividend Yield is 2.2%, providing a relatively stable income stream. The Net Debt / EBITDA ratio is 0.17, indicating a healthy debt position.

Action's Performance and Growth Prospects

Action has demonstrated extraordinary growth over the last 5 years, contributing to 3i's compounding returns. The company's customer focus, white space potential, and remarkable store payback periods are expected to drive strong returns. Action's growth has been fueled by its expansion in various markets, including France, Italy, and Eastern Europe. Despite a slowdown in like-for-like sales in France, the company remains confident in its growth prospects, with a target of opening 380 new stores.

Challenges in France and Future Plans

In France, Action faced challenges due to the current political situation and economic uncertainty. However, the company believes that its 900 stores in the market will continue to perform well in the long term. To meet its like-for-like guidance, Action needs to see a focus on Christmas purchasing, particularly in France. The company intends to open more stores in 2024, with a target of exceeding this year's number.

Expansion into New Markets

Action is seeing high sales per store in Switzerland and strong performance in Romania, indicating successful expansion into new markets. 3i has an ongoing appetite to buy more equity in Action when opportunities arise, demonstrating its confidence in the company's growth prospects. Analysts estimate next year's revenue growth at 21.5%, indicating a strong outlook for the company.

3. NewsRoom

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What Analyst Shifts Mean for 3i Group’s Valuation Story

Nov -16

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3i Group PLC (TGOPF) (Q2 2026) Earnings Call Highlights: Strong Returns Amidst Challenging Markets

Nov -13

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How the Narrative Around 3i Group Is Evolving After Recent Analyst Upgrades and Risks

Nov -02

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Why The Narrative Around 3i Group Is Changing After Fresh Analyst Insights

Oct -18

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How Recent Upgrades Are Reshaping the Growth Story for 3i Group

Oct -04

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Tesco delivers but FTSE ends four-day winning run

Oct -02

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FTSE 100 LIVE: Markets take breather following record setting-week

Jul -25

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Analysts' Revenue Estimates For 3i Group plc (LON:III) Are Surging Higher

May -28

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.33%)

6. Segments

Private Equity

Expected Growth: 10.5%

The 10.5% growth in Private Equity from 3i Group plc is driven by strong portfolio company performance, increased investment activity, and a focus on digital transformation. The growth is also attributed to the company's strategic focus on European and Asian markets, and its expertise in sectors such as healthcare and technology.

Infrastructure

Expected Growth: 12.0%

The 12.0% growth in Infrastructure from 3i Group plc is driven by increased investments in renewable energy, transportation, and social infrastructure. Strong demand for sustainable projects, government support, and a focus on core sectors have contributed to this growth. The segment's performance is also attributed to effective asset management and a robust pipeline of new projects.

Scandlines

Expected Growth: 8.2%

Scandlines' growth of 8.2% is driven by increasing passenger and vehicle volumes, supported by ferry schedule optimization and pricing strategies. The company's strategic focus on customer experience and loyalty programs also contributes to revenue growth. Additionally, efficient cost management and investments in new vessels enhance profitability.

Unallocated - IFRS Adjustments

Expected Growth: 0.0%

The 0.0% growth in Unallocated - IFRS Adjustments from 3i Group plc is primarily driven by the absence of any significant adjustments or changes in accounting policies. This stable performance indicates that the company's financial reporting and adjustments are consistent, with no major one-off effects or reclassifications impacting the financial statements.

7. Detailed Products

Private Equity

Investment in private companies, focusing on growth and transformation

Infrastructure

Investment in infrastructure projects and companies

Real Estate

Investment in real estate properties and companies

Growth Capital

Investment in growth-stage companies

8. 3i Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The 3i Group plc operates in the private equity and venture capital industry, which has a moderate threat of substitutes. While there are alternative investment options available, such as public markets or other types of investment vehicles, the company's focus on private equity and venture capital provides a level of uniqueness.

Bargaining Power Of Customers

The 3i Group plc's customers are typically large corporations or institutional investors, which have a relatively low bargaining power due to the company's expertise and track record in private equity and venture capital.

Bargaining Power Of Suppliers

The 3i Group plc's suppliers are typically investment banks, law firms, and other professional services firms, which have a relatively low bargaining power due to the company's size and reputation.

Threat Of New Entrants

The private equity and venture capital industry has a high threat of new entrants, as there are relatively low barriers to entry and an increasing number of new firms entering the market.

Intensity Of Rivalry

The private equity and venture capital industry is highly competitive, with many established firms competing for deals and investors. This results in a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.84%
Debt Cost 8.96%
Equity Weight 94.16%
Equity Cost 9.25%
WACC 9.23%
Leverage 6.20%

11. Quality Control: 3i Group plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

Stock-Card
3i Group

A-Score: 6.9/10

Value: 3.9

Growth: 8.3

Quality: 9.6

Yield: 4.4

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Erste Bank

A-Score: 6.8/10

Value: 6.4

Growth: 4.6

Quality: 6.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Investor AB

A-Score: 5.0/10

Value: 1.6

Growth: 4.8

Quality: 6.4

Yield: 3.8

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Partners Group Holding

A-Score: 4.7/10

Value: 0.7

Growth: 4.9

Quality: 7.4

Yield: 6.2

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
EQT

A-Score: 4.5/10

Value: 2.7

Growth: 7.1

Quality: 8.2

Yield: 1.2

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.31$

Current Price

32.31$

Potential

-0.00%

Expected Cash-Flows