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Four 3i directors leave to set up own firm

Four directors at 3i Group have left the firm to set up their own business. The private equity firm has denied that the loss of these investment professionals could affect the closing of its E3bn fund by the end of the year.

Tom Sweet-Escott, the director who secured 3i's investment in low-cost airline Go, and Chris Graham, the head of the company's media unit, have both left the firm. They have been joined by director Hugh Richards and Richard Campin, head of 3i's French division.

‘This has no major implications for our strategy or where the business is going,' Michael Queen, 3i's finance director told Reuters. ‘Because of the way we structure our deal terms there is also no risk that any one individual would own key contacts,' he said.

Queen confirmed that the directors had resigned to set up their own firm but was unable to confirm that they will set up a rival investment fund. All of the professionals concerned are currently on three months' gardening leave.

The announcement will be unhelpful to 3i as it endeavours to make progress on its fundraising. Conditions are tough enough without investors being rattled by defections. 3i, however, is a very large private equity firm by the standards of most and the individuals, while influential, are not integral to the market's perception of 3i in the way that senior professionals often are in smaller groups.

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