Investec view: 3iN announced a positive Q3 performance update this morning, with management highlighting that the portfolio was performing in line with the expectations set at the half-year. Portfolio income was in-line with budgets and the company remains on track to meet its FY22 dividend target. As we highlighted in our December note (here), this was an extremely busy quarter for the company, making c.£850m of new commitments. These comprised c.£376m to acquire 100% of Global Cloud Xchange (GCX), c.£258m to acquire the remaining 50% stake in ESVAGT, c.£191m to acquire a 92% stake in SRL Traffic Systems and a further c.£21m invested into Valorem to increase its stake to c.33%. The company has agreed an additional RCF to finance these and future transactions. Given current commitments, and in the absence of material realisations, we would expect the company to raise equity in H1 this year. Whilst we remain comfortable with our Buy recommendation, we acknowledge that, given the material premium to NAV, such an equity raise may represent a more attractive entry point for the more tactical investor. Balance sheet: At 31 December, 3iN had £86m cash although this was reduced by the £47m interim dividend payment in early January. The RCF was £70m drawn. The £98m outstanding from the sale of WIG in 2019 was due in December 2021; however this has been deferred to December 2023, although it is callable on six weeks’ notice. It is likely that this balance will be called when the GCX consideration (£376m) becomes due in mid-2022. Following the completion of the ESVAGT transaction (£258m), expected today, drawings on the RCF will be £289m, assuming the existing cash on the balance sheet is also allocated to fund the ESVAGT transaction. Following the completion of the GCX transaction, expected in mid-2022, and assuming the WIG notes are called, we estimate that drawings on the RCF will be c.£567m (c.22% of our NAV estimate). Increase in credit facilities: In December, 3iN received lender approval to increase its existing RCF by £200m to £600m. In January 2022, 3iN obtained an additional £400m, one year credit facility from existing lenders. Given that the original £600m RCF is substantially committed following the commitments to ESVAGT and GCX, this additional facility provides the company with greater flexibility to fund future investments in the short-term. Portfolio update: The portfolio continues to perform well and Management advised that total income and non-income cash was in line with expectations at £26m and ahead of the £24m received in the same period last year. The company remains on track to meet its FY22 dividend target (10.45p/share).