3i sells venture portfolio companies to secondary direct investment firm

The transaction involves late stage venture investments in IT, internet media and cleantech businesses headquartered in various European countries, but no companies were named.

Roland Dennert, a partner at Cipio, said, "3i has invested in a number of mature, yet high-growth assets and Cipio is delighted to have been chosen to take over from 3i. Our ability to rapidly execute transactions with large asset pools was certainly part of the solution 3i was seeking, and our favourable track record with both vendors and portfolio companies in past deals made Cipio the partner of choice. We are delighted to bring our combined European and US angles to bear for the portfolio companies."

The transaction reflects the evolution of the private equity industry and of the secondary direct market, with a growing number of private equity firms exploring alternative liquidity routes for their portfolios.

Maximilian Schroeck, a managing partner at Cipio in the US, said, "After starting out with several acquisitions from Fortune 500-type corporations, over the last six to eight quarters Cipio has seen very strong deal flow from the full range of market participants including banks, private equity firms and corporates in our core markets in Europe, the US and the Middle East. Against the backdrop of the macroeconomic situation, secondary direct market activity is set to increase and we are very well positioned within it."

3i refocused its strategy away from venture capital to growth capital investment in early 2008.

Achim Lederle, 3i partner, who co-led the transaction, added, "This sale of 3i's stakes in these venture capital assets is consistent with 3i's strategy to realise our legacy venture capital portfolio at strong values and our strategy to invest on profitable fast growing SMEs, mid-market buy-outs and infrastructure opportunities. We are pleased to name Cipio, a reputable secondary fund with good experience in building companies, as the new shareholder who we believe will assist these firms to continue their growth paths in the spirit of the original 3i investment."

Founded in 2003, Cipio Partners manages an international portfolio of late stage venture and growth capital as well as mid-market investments from offices in Munich, London, Luxembourg and San Jose, California.

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