3i (III) has a knack for spotting worthy private equity investment opportunities at the moment. The investment manager gained a gross return on these investments of more than £1bn last year, representing a 32 per cent return on the opening portfolio at the start of the year. As a result, the group plans to reward shareholders with a more generous dividend policy. Chief executive Simon Borrows evidently wants a piece of the income on offer, buying £2.5m* in shares in the investment group.
Minimum annual dividend payouts will be increased to 16p from 8.1p from the financial year ending 31 March 2017. Shareholders will also receive an additional final dividend each year, taking into account cash realisations, the investment pipeline and the balance sheet. In addition, the final dividend will only be paid out provided gross debt is less than £1bn and gearing less than 20 per cent.