Balfour Beatty, the international infrastructure group, announces that its infrastructure funds management business, Balfour Beatty Infrastructure Partners (BBIP), has reached first close on its first fund.
In November 2010, Balfour Beatty announced plans to set up a funds management business. Our objective was to utilise a combination of infrastructure asset knowledge, skills and experience that has accumulated within the Group, particularly in the Infrastructure Investments division and Parsons Brinckerhoff, to earn a superior return on capital as well as advisory fees. A funds management business would also leverage our capabilities into greater pools of capital while diversifying risk to the Group.
This business, BBIP, was set up in 2011, with the recruitment of four senior individuals. Since then they have worked on obtaining the relevant registrations, establishing a presence in London and New York, identifying investors and pursuing the appropriate initial assets for the fund to invest in.
Today, the BBIP fund reached first close with US$317 million (£200 million) of commitments, of which Balfour Beatty has committed US$110 million (£70 million). Subsequent levels of close are expected during the course of 2013, ultimately reducing Balfour Beatty’s share in the fund to c.10%. Drawdowns will be dependent on the timing of investments by the fund, but it is anticipated that Balfour Beatty’s commitment will be invested over the next 3-4 years.
The fund will make investments in predominantly brownfield (operational) assets into its key target sectors of transport, energy and utilities across the UK, Europe, and North America.
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This document contains forward-looking statements which have been made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of risks and uncertainties that are inherent in any forward-looking statement which could cause actual results to differ materially from those currently anticipated.
Notes to editors:
1. Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group with capabilities in professional services, construction services, support services and infrastructure investments.
We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise.
Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail).
The Group delivers services essential to the development, creation and care of these infrastructure assets including project design, financing and management, engineering and construction, and facilities management services.
Balfour Beatty employs 50,000 people around the world.