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Babcock & Brown closes €600m PE fund

Amidst a flurry of fundraising activity, the Australian investment bank has announced a final close of its new listed private equity vehicle.

Babcock & Brown, the specialist Australian investment bank, has raised A$1 billion (€600,000 million; $770,000 million) for a listed private equity vehicle called Babcock & Brown Capital.

The fund received commitments of A$800 million from foundation and institutional investors, according to a report in The Australian newspaper.

The fund received a A$60 million investment from its parent as well as undisclosed commitments from Babcock & Brown board members. The remainder came from investors in Babcock & Brown and its affiliate, Prime Infrastructure.

Commenting on the fundraising, Phil Green, CEO of Babcock & Brown, said: “We are grateful for the support these investors have shown Babcock & Brown Capital and are very pleased that the offer has closed fully subscribed.”

Other Australian financial institutions have recently been active in the private equity fundraising market. Allco Finance recently closed a A$550 million vehicle, Allco Equity Partners. Macquarie Bank is currently in the process of marketing a A$600 million private equity fund.

The report cited investment bankers who suggested that the Australian private equity industry currently has up to A$8 billion of unused capital to deploy.

In December, GS Private Equity and Pacific Equity Partners completed Australia’s largest private equity deal of 2004 by teaming up to acquire earthmoving equipment provider Emeco International for almost A$500 million (€285 million; $382 million).