Business Activities
Babcock & Brown Capital
In July 2007 BCM acquired Golden Pages, the leading Israeli directories and local search business for an enterprise value of $248 million. During the period the company’s Irish telecommunications investment, eircom, sold its radio mast site business for a total cash consideration of $258 million at a 17.2x EBITDA multiple.
AUM at 31 December 2007 was $6.7 billion.
Babcock & Brown Global Partners
The fund exercised its right to co-invest on a range of Babcock & Brown originated transactions during the period. At 31 December 2007, BBGP had drawn capital from investors totalling €244.6 million (A$408.1 million), or 65% of the fund, and a further €111.9 million (A$189.9 million) of capital was committed to transactions.
Babcock & Brown Direct Investment Fund
As at 31 December 2007, DIF's three trusts, DIF I Equity Trust , DIF II Mezzanine Debt Trust and DIF III Global Co Investment Fund, held assets valued at $516.3 million. Since start-up in 2005, these Trusts have returned a combined $215 million to unitholders from successful asset realisations and income distributions. DIF I was closed to new commitments and assets from 30 June 2007.
BBDIF's third trust, the DIF III Global Co Investment Fund, reached first close during September2007 with $115 million of investor commitments. This fund is now 76% invested in three assets. The Fund is seeking to raise an additional $200 million by final close at the end of May 2008.
Everest Babcock & Brown Alternative Investment Trust
During the year EBI announced the successful completion of a non-renounceable Entitlement Offer, raising $253.2 million and a Placement Offer, raising $250.0 million.
AUM at 31 December 2007 was $1.5 billion.
Everest Babcock & Brown
On 9 January 2007, EBB announced the close of the Everest Babcock & Brown Opportunities Fund with capital commitments of approximately $179 million.
AUM at 31 December was $1.8 billion.
Babcock & Brown equity accounts the earnings of this investment.
Babcock & Brown Communities
During the year Babcock & Brown announced the restructure of its interests in the senior living sector to create BBC, ASX’s largest pure play specialised investment vehicle for the senior living sector. Following the approval of a Scheme of Arrangement with Prime Life and a capital raising in BBC, which raised the maximum capital of $475 million, BBC listed on the ASX on 7 August 2007.
Since listing BBC has grown its portfolio from 44 to 56 retirement villages and has 17 aged care facilities across Australia and New Zealand.
AUM at 31 December 2007 was $2.4 billion.
Babcock & Brown Global Investments Limited
BBGIL has a diversified portfolio of assets across three target sectors:
• Operating leasing assets.
• Loan portfolio and securitisation assets.
• Alternative assets.
During the year BBGIL made six new investments and increased its investment in three of the assets acquired at listing.
AUM at 31 December 2007 was $466 million.
Collaterised Debt Obligation (CDO) Equity Fund
Babcock & Brown manages three CDO’s. The Group’s exposure to these investments remains insignificant and investments are financed by long term non-recourse finance not exposed to margin calls.
Speciality Finance
During the year the Specialty Products Division continued to focus on growing its niche, specialised asset based businesses.