Deep Dive – Is Action's growth model broken? Or are these just temporary cracks?

3i Group (London: III) has presented its annual results for the broken financial year 2026. Although the holding company reported a solid total return on equity of 22%, comfortably above its own 15% target, the market reacted nervously with a sharp share price decline. Net Asset Value (NAV) rose to GBP 30.30 per share, partly driven by strong results across the wider portfolio. The other Private Equity arm (excluding Action), for instance, delivered a gross investment return of 14%, with Royal Sanders performing particularly well. The Infrastructure arm also contributed steadily, with a return of 7%.

Despite this broad base, the narrative for investors revolves almost entirely around Action, which accounts for around 80% of the group's intrinsic value. The market is concerned about the slowdown in organic growth and the pressure on margins at the discount giant. In this extensive Deep Dive, we analyse whether 3i's renowned compounding model is genuinely under pressure, or whether the current share price fall actually creates a unique entry point given the deep discount to NAV and the massive GBP 750 million share buyback programme.

This article was originally written in Dutch and automatically translated into English with the help of AI. In case of any difference, the Dutch original prevails.