UK private equity firm 3i Group has struck a deal to sell its five-year-old debt management business, which manages assets of approximately $12 billion, to Bahraini investment group Investcorp.

3i, which formed the unit in February 2011 after the acquisition of Mizuho Investment Management, said in an October 25 statement it is to sell the business to InvestCorp, earning it £222 million in cash and an exceptional profit of £36 million.