Lead Manager

SECTION 3
BUSINESS OVERVIEW
Babcock & Brown’s investment activities can be segmented into the broad categories outlined below:
Activity Description Return to Babcock & Brown
Arrangement/
Syndication
• Babcock & Brown identifies an investment, negotiates
as a principal, arranges financing but syndicates equity
to third-party investors prior to final commitment
and financial close
• Acquisition advisory fees
• Debt/equity arrangement fees
• Development fees
• Equity syndication fees
Underwriting
Investment/
Asset Management
Principal
Investment
• Babcock & Brown commits capital to underwrite the
transaction and/or actually deploys funds to complete
the acquisition, with syndication/selldown of the
equity thereafter. Includes bridge financing where
Babcock & Brown provides a short-term loan to
complete a transaction prior to refinancing with
longer-term funding sources
• Babcock & Brown manages assets and provides other
services post-acquisition (typically following an
equity syndication or advisory assignment), including
asset maintenance/upgrades, financial reporting and
asset sales
• Babcock & Brown deploys capital in transactions,
often with co-investors or in conjunction with an
equity syndication
• Babcock & Brown has completed transactions as both
an equity and a debt investor
• Underwriting fees
• Mark-up on investment upon
syndication
• Recurring management fees
• Refinancing
• Carried interest/profit
sharing/performance fees
upon asset disposition (sale,
remarketing etc.)
• Directors’ fees
• Income returns (dividends,
interest income)
• Development profits
• Proceeds upon sale of assets
Organisational structure
Babcock & Brown operates within five Business Groups:
• Real Estate
• Infrastructure and Project Finance
• Operating Leasing
• Structured Finance
• Corporate Principal Investment and Funds Management
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