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.
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- Private investment syndicates
- Listed funds
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- Project developer
- Equity investor
- Senior and mezzanine debt provider
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- M&A advisor
- Project finance advisor
- Corporate advisor
- Debt/equity arranger
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Net Revenue
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Base fees from AUM
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127,075
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55,361
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Co-investment income
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45,632
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9,084
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Advisory fees from AUM
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147,706
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151,755
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Performance fees from AUM
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11,487
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25,631
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Other Operating Income
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55,338
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72,952
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Development fees, interest and profits
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331,968
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145,619
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Principal investment
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176,302
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2,276
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Third party advisory fees
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7,340
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7,839
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Net Revenue (excl Minority Interest)
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902,848
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470,517
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Segment Minority Interest
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9,306
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2,944
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Total Net Revenue
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912,154
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470,446
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Sectors
- Renewable fuels
- Renewable power
- Conventional power
- Transportation
- Distribution and transmission
- Resources
- Public Private Partnerships (PPP)
- Water treatment