However, the company's performance was well ahead of leading stock market indices. As a long-term investor 3i bought stakes in companies at an early stage in their development. We are not paying quoted market prices for these opportunities.
Technology investments are very attractive because the potential upside is very high.
Last year's market turbulence might present 3i with an opportunity even though would-be entrepreneurs have been discouraged by collapsing share prices. We are seeing an increase in opportunities. Some of the new entrants into the venture capital market have locked up their cheque books because this is the first time they have experienced a downturn. The market shake-out has meant valuations have fallen to more attractive levels. We have a strong balance sheet, low gearing.