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

Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021