3i could cut its workforce by around 40 per cent and reduce its overseas network as part of a dramatic overhaul of the struggling London-listed private equity firm spearheaded by new chief executive Simon Borrows, Bloomberg reported on Friday.
Borrows, the former Greenhill banker who replaced Michael Queen last month, could also tell shareholders at its annual general meeting this week that the firm will reduce its operations in Singapore, its first office in Asia.
Borrows, pictured, previously said he will announce plans to raise profitability and improve deal-making at the shareholders meeting on 29 June following an 80 per cent reduction in the firm’s share price in the last five years.
Borrows is also looking to half the amount invested in private equity from 80 per cent to 40 per cent over the next five years, with debt management and infrastructure each contributing 30 per cent to the portfolio.
The firm was particularly active during the peak of the private equity boom, investing heavily in now troubled markets such as the UK and Spain with large amounts of cheap debt that must now be repaid.
3i posted a £425m loss for the year ended March 2012.
Copyright © 2012 AltAssets