3i Group, which launched a $1.2bn fund five years ago to invest in Indian infrastructure assets as part of a key investment drive, has decided to pull out of the country due to “unwelcome volatility to overall portfolio performance”.

The UK-listed investment manager in 2008 said that India would be a key plank of its infrastructure platform. Michael Queen, who was founder and chief executive of 3i Infrastructure, before becoming 3i Group chief executive in 2009, said the firm decided on a dedicated India vehicle following a "proliferation of investment opportunities" in the region.