UK's private equity firm 3i Group Plc has agreed to sell its venture portfolio of investments in several small European companies to a rival consortium comprising UK's Coller Capital and DFJ Esprit and US-based HarbourVest Partners for about £130 million ($217 million).

The move to sell stakes in 29 companies is in line with the company's earlier decision to exit small portfolio investments in sectors like technology, media, telecommunications, and healthcare across European companies, in order to reduce debt and focus more on buyout and infrastructure assets.

Coller Capital and HarbourVest are one of the largest private equity buyers from the secondary market who will buy 3i's holdings, while the other partner, venture capitalist DFJ Esprit is expected to manage the assets. 

The sale proceeds will be used to reduce further the company's debt burden, which stands at £961 million as of 30 June. The company's new chief executive, Michael Queen has taken a series of measures including a £732 million rights issue to bring down the debt which stood at a whopping £2.11 billion in December and £1.92 billion at the end of March.

In the recent past, the company has been selling its venture portfolio to investors in US and Germany in order to raise funds to cut debt.

The net asset value per share of 3i plunged by 46 per cent to £4.96 at the end of March, from £10.77 a year ago, which is in sharp contrast to the strong returns of the previous five years. The fall was primarily on account of dislocation of the world's capital markets and collapse of mergers and acquisitions activity.