Sherborne Investors, the activist investment firm controlled by Edward Bramson, has sold down its stake in 3i Group and hedged the rest through derivatives, signaling a retreat from the UK-listed private equity firm following months of speculation over a possible showdown.

Sherborne Investors B, the fund which holds the stake in 3i, said in an RNS announcement this morning that it has effectively exited its 5% position through a partial sale of its direct holding and a hedging of its remaining exposure through the use of derivatives to lock into an exit price of 367p.