3i writes down 75% of its early-stage portfolio.

Financial News, June, 2003

Byline: Michael Hoare

3i, the largest private equity group in Europe, has written down its early-stage investment portfolio by 75%, far more than most observers expected.The investment firm's early-stage technology portfolio was worth [pounds sterling]589m ([euro]845m) at the end of March. Analysis from Morgan Stanley, published last week, showed that 3i had written the investments down to 25% of their cost.

The average value of the holdings is 45% of the total price paid for them, but this is because recent deals are held at 100% of cost, bringing up the average. The value of earlier deals is much lower than 45% of cost.

Douwe Cosijn, corporate affairs director at 3i, declined to comment on Morgan Stanley's numbers, but said the company did...

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