London, Jan 15, 2026, 09:26 GMT — Regular session
- Shares of 3i Group climbed roughly 3.8% in early London trading.
- UK GDP data exceeded expectations, boosting bets on rate cuts and lifting risk appetite.
- Investors are focused on 3i’s Q3 update on Jan. 29 for clues on the portfolio and Action.
3i Group (III.L) shares jumped 3.8% to 3,150 pence in early Thursday trading, outperforming the slightly stronger broader market. (3I)
The move came after UK data revealed the economy expanded more quickly than anticipated in November, easing some immediate recession worries and shifting attention to possible Bank of England rate cuts. “Firms are telling us they’re still cautious about investing and recruiting,” said Stuart Morrison, research manager at the British Chambers of Commerce. (Reuters)
Official data revealed a 0.3% GDP increase in November following a 0.1% drop in October. Services and production sectors edged higher, while construction declined. The Office for National Statistics also reported a 0.1% GDP growth over the three months ending in November. (Office for National Statistics)
Despite a bounce on Thursday, 3i’s shares have been volatile since late 2025 and still trade far below their autumn peak. On Tuesday, the stock closed at 30.63 pounds, roughly 32% below its 52-week high of 44.97 pounds hit on Oct. 27, according to MarketWatch data. (MarketWatch)
Investors often view 3i as a stand-in for European consumer health and private equity valuations, largely because of its heavy exposure to Action, the Dutch discount retailer. In its latest results, 3i reported that Action’s net sales hit 11.23 billion euros over the first nine reporting periods ending in late September. The firm also increased its stake in Action to 62.3%. CEO Simon Borrows noted the group “remain[s] cautious” about putting capital into new deals. (3I)
Europe’s mood on Thursday gave a lift. The STOXX 600 climbed, with tech stocks driving the rally after robust earnings. Positive UK data also fueled appetite for risk, Reuters reported. (Reuters)
The broader macro outlook remains shaky. Anna Leach, chief economist at the Institute of Directors, highlighted softer consumer services output and a sharp drop in construction as key concerns. (Institute of Directors)
For 3i, lower discount rates may boost portfolio valuations and ease financing for leveraged deals, though these effects are indirect and take time to materialize. The shares also react to sentiment around unlisted assets, where price discovery remains uncertain.
The downside is clear: if UK growth stalls again or interest rates remain elevated, investors could start doubting private equity valuations and the premium that some listed firms enjoy over net asset value (NAV)—which reflects portfolio value minus debt. Should Action, the main contributor to 3i’s results, face another slowdown, the share price would likely take a hit fast.
3i’s Q3 update drops Jan. 29. Investors will be watching for a new NAV figure and insights on Action’s trading alongside the broader deal landscape. (3I)
