3i boosts debt assets with deal for Invesco funds

LONDON (Reuters) – Private equity firm 3i Group said it had agreed to buy a clutch of debt funds from Invesco, as the group steps up efforts to diversify away from traditional private equity deals under new Chief Executive Simon Borrows.

3i (III.L) said it had signed agreements to buy seven European collateralised loan obligation management contracts from Invesco, adding some 2 billion euros in assets to its debt management arm established 18 months ago.

Mirroring many large private equity firms, such as Blackstone (BX.N) and KKR (KKR.N) that have expanded their businesses into new fields of asset management, 3i acquired the debt management of Mizuho in 2010 for 18.3 million pounds, under former chief executive Michael Queen.

The deal marks the first significant acquisition for Borrows in his new role as CEO, and underlines his commitment to extending 3i’s asset base.

It takes total debt assets under management to 6 billion euros.