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Infrastructure

Overview

The Infrastructure Division has an integrated principal investment and long term fund and asset management model. Origination of assets for investment is either through development on Babcock & Brown’s balance sheet, sometimes in conjunction with partners, or through the acquisition of existing assets in negotiated transactions or in some instances, competitive tenders.

The Division has established a competitive advantage for its specialised fund and asset management platform through its development pipeline which is reflected on Babcock & Brown’s balance sheet at cost and in some instances, where appropriate to the investment mandate, on the balance sheet of its externally managed funds. The book value of the Division’s development pipeline at 31 December 2007 was $1.2 billion, an increase of 51% over the previous corresponding period.

At 31 December AUM was $31.0 billion representing 128% growth during 2007. Growth in AUM was primarily driven by the raising of wholesale infrastructure funds in Europe and Asia, wholesale capital committed for investment in North American infrastructure, capital raised to fund the acquisition of some of the assets of Alinta Limited by BBI, BBP and BBW and capital raisings by both BBW and BBI early in 2007.


Investment management

Principal investment

Advisory

  • Private investment syndicates
  • Listed funds
  • Project developer
  • Equity investor
  • Senior and mezzanine debt provider
  • M&A advisor
  • Project finance advisor
  • Corporate advisor
  • Debt/equity arranger

 

Net Revenue

 


Year ended
31 December 2007
$'000


Year ended
31 December 2006
$'000

Base fees from AUM

127,075

55,361

Co-investment income

45,632

9,084

Advisory fees from AUM

147,706

151,755

Performance fees from AUM

11,487

25,631

Other Operating Income

55,338

72,952

Development fees, interest and profits

331,968

145,619

Principal investment

176,302

2,276

Third party advisory fees

7,340

7,839

Net Revenue (excl Minority Interest)

902,848

470,517

Segment Minority Interest

9,306

2,944

Total Net Revenue

912,154

470,446


Sectors

  • Renewable fuels
  • Renewable power
  • Conventional power
  • Transportation
  • Distribution and transmission
  • Resources
  • Public Private Partnerships (PPP)
  • Water treatment