3i Infrastructure, the £1bn (€1.2bn) fund backed by UK-based private equity firm 3i, is gearing up to spend its near £300m cash pile in anticipation of a cutback in government spending.

The London-listed firm, which has £287m in cash to invest, will target transport groups and public projects that governments can no longer afford as they plug budgetary holes, according to Cressida Hogg, managing partner for infrastructure at 3i Investments.