3i, the UK’s oldest private equity group, is expected to announce on Friday that more than 95 per cent of shareholders took up their rights in its £732m share issue, highlighting a renewed appetite among investors for buy-outs.

The results of the rights issue, which was fully underwritten, also illustrates the early success of Michael Queen, 3i’s new chief executive, in repairing the company’s debt-burdened balance sheet since he replaced Philip Yea in January.