Operating Leasing
Overview
Babcock & Brown's Operating Leasing Division manages a portfolio of assets within four business units:
• Babcock & Brown Aircraft Management (BBAM) – aircraft.
• Babcock & Brown Rail Management (BBRM) – railcars.
• Eurorail – locomotives and railcars.
• Babcock & Brown Electronics Management (BBEM) – semiconductor manufacturing equipment.
Within each of its operating leasing businesses, Babcock & Brown seeks to acquire portfolios of assets that can be placed with appropriate long-term investors, while maintaining an on-going management role. The assets are typically held under investment structures designed by Babcock & Brown to optimise financial returns which are shared between it and investors.
The Operating Leasing Division reported AUM of $11 billion at 31 December 2007, an increase of 18% over the 12 month period. This growth was driven by the growth in aircraft under management and the growth in rail under management in both North America and Europe.
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Manages a portfolio
of 270 leased commercial jets with a total value of US$7.3 billion (A$8.3 billion).
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Manages over 16,745 freight railcars in North America
Portfolio value in excess of US$1.17 Billion
Joint railcar leasing venture established with Greenbrier
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Joint venture with HBOS
Origination and fleet management services to CBRail
Operating lease financing for regional operators throughout Europe
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Relatively new business built around a management team with over 20 years' combined average experience
Focused on trading, lease-portfolio management and the creation of financing products for semiconductor manufacturing equipment
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Net Revenue
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Base fees from AUM
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30,239
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25,767
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Co-investment income
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13,405
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7,036
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Advisory fees from AUM
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83,759
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39,589
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Performance fees from AUM
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34,060
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6,576
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Other operating income
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35,057
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19,755
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Development fees, interest, and profits
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-
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-
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Principal investment
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-
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-
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Third party advisory fees
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11,885
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13,716
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Net Revenue (before Minority Interest)
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394,452
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177,468
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Segment Minority Interest
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(9,506)
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(2,449)
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Total Net Revenue (after Minority Interest)
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384,946
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175,019
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Within each of its operating leasing businesses, Babcock & Brown seeks to acquire portfolios of assets that can be placed with appropriate long-term investors, while maintaining an on-going management role. The assets are typically held under investment structures designed by Babcock & Brown to optimise financial returns which are shared between it and investors.
The Operating Leasing Division reported AUM of $11 billion at 31 December 2007, an increase of 18% over the 12 month period. This growth was driven by the growth in aircraft under management and the growth in rail under management in both North America and Europe.