Some investors think 3i Group (III) could be classified as a retailer, and little wonder as annual results show two thirds of the £21.6bn private equity fund manager is invested in Action, the rapidly growing discount retailer that accounted for the bulk of its latest 23% annual return.
However, in results for the year to 31 March chief executive Simon Borrows took the opportunity to identify personal care products manufacturer Royal Sanders as one of 3i’s next generation of winners.
Borrows said that Netherlands-based company Royal Sanders, in which 3i invested in 2018 and helped with six bolt-on acquisitions, had been designated alongside Action as a ‘longer-term hold asset’. This was, he said, in recognition of its consistent performance and impressive compounding returns, with 3i making 5.3 times its original investment.