Balfour Beatty reaches first close on funds management business

Balfour Beatty, the FTSE 250 international infrastructure group, said Thursday that its infrastructure funds management business, Balfour Beatty Infrastructure Partners (BBIP), has reached first close on its first fund.

Balfour Beatty, the FTSE 250 international infrastructure group, said Thursday that its infrastructure funds management business, Balfour Beatty Infrastructure Partners (BBIP), has reached first close on its first fund.

BBIP, which was set up in 2011, with the recruitment of four senior individuals, reached first close with $317m (£200m) of commitments, of which Balfour Beatty has committed $110m (£70m).

The company plans to ultimately reduce its share in the fund to around 10%.

It said that subsequent levels of close are expected during the course of 2013, and that drawdowns will be dependent on the timing of investments by the fund - although it is anticipated that Balfour Beatty's commitment will be invested over the next 3-4 years.

The company intends to use the fund to make investments in predominantly operational assets into its key target sectors of transport, energy and utilities across the UK, Europe, and North America.

Explaining the aim of the fund management business, Balfour said: "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."

The share price rose 0.24% to 290.70p by 08:31.

NR

Recommended

HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022
How to be better at selling stocks
Investment strategy

How to be better at selling stocks

There is plenty of advice around about buying stocks, but not so much about when you should sell. John Stepek explains the two key things to know abou…
14 Jan 2022
Share tips of the week – 14 January
Share tips

Share tips of the week – 14 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 Jan 2022
Fintech: how to profit as technology transforms banking around the world
Share tips

Fintech: how to profit as technology transforms banking around the world

Financial technology – from apps to APIs to the cloud – is rapidly transforming financial services. This will spell doom for some incumbent firms, whi…
14 Jan 2022

Most Popular

Five unexpected events that could shock the markets in 2022
Stockmarkets

Five unexpected events that could shock the markets in 2022

Forget Covid-19 – it’s the unexpected twists that will rattle markets in 2022, says Matthew Lynn. Here are five possibilities
31 Dec 2021
Which investment trusts performed the best in 2021?
Investment trusts

Which investment trusts performed the best in 2021?

Shivani Khandekar runs through the top ten investment trusts of 2021 – and the worst performing trusts – and looks ahead to 2022.
7 Jan 2022
The booming jobs market points to inflation lasting for longer
Economy

The booming jobs market points to inflation lasting for longer

It’s a good time to be looking for a job, with plenty of vacancies and wages rising. But higher wagers are driving inflation up – and it’s not just a …
11 Jan 2022