3i has bought Alderwoods, a UK funeral concern, a month after selling Laurel Management Services, another funeral chain that it owned for eight years with Aberdeen Murray Johnstone Private Equity.

It paid £10.75m (€15.4m) for Alderwoods, backed by Royal Bank of Scotland and advised by Deloitte & Touche Corporate Finance. Private equity firms have shown interest in the UK funeral business, which is in a period of consolidation. Sovereign bought Laurel from 3i and Montagu owns Dignity Caring Funeral Services.