3i Group plc has announced today the completion of the acquisition from Barclays Bank plc of Barclays Infrastructure Funds Management Limited, its European infrastructure fund management business.

The business currently manages two active unlisted funds that invest in UK and European PPP and energy projects and has assets under management of approximately £780 million.

Barclays Infrastructure Funds Management Limited will be renamed 3i BIFM Limited (3i BIFM) and will be incorporated into 3i's existing infrastructure investment business led by Managing Partner Cressida Hogg. 3i BIFM's activities will continue to be led by Nigel Middleton and Andy Matthews who along with Stéphane Grandguillaume will join as Partners in 3i's infrastructure business. The 22 people team will be based at 3i's offices in London and Paris.

3i said in a press release:

The completion of this acquisition represents a significant milestone in the implementation of 3i's strategy, demonstrating 3i's commitment to the growth of its infrastructure business and reaffirming its objective to increase third-party fee income by growing assets under management. 3i intends to leverage the enhanced platform to bring incremental deal flow to 3i Infrastructure plc and raise new funds. The acquisition will broaden the capabilities and expertise of 3i's infrastructure investment team, expanding its access to the growing PPP and energy project market across Europe.

BIFM raised its first fund in 1996 and was one of the first to invest in the public-private partnership infrastructure market, 3i said.

According to sources, the acquisition could value the business at less than £12 million, or 1.5 % of assets under management.