Australian infrastructure specialist Babcock & Brown has promoted John Fanning to chief financial officer. Fanning replaces Michael Larkin, who was promoted to chief executive officer on 21 August.
Former chief executive Phil Green, along with former chairman Jim Babcock, resigned in late August in response to shareholder calls for a management shakeup. At the same time, the firm began an extensive review of its businesses.
The publicly listed firm has seen its shares plummet 90 percent in value over the past year. The firm also announced recently that its publicly listed energy fund would take an A$452 million ($375 million, €261 million) write-down.
Fanning joined the firm’s corporate and structured finance (CSF) division in August 2005. He also held the position of chief investment officer of Babcock Brown Capital, an Australian Stock Exchange-listed satellite fund managed by CSF, whose primary investments are in telecommunications. Before, he was a partner at Ernst & Young and a director of Ernst & young transaction advisory services.
As part of the larger strategic review, Babcock announced that CSF will be gradually wound down. The firm has said it plans to refocus on its core businesses of infrastructure, real estate and operating leasing as well as evolving its activities into a more private equity-like asset management model.
Babcock & Brown currently manages 11 listed funds, five unlisted funds, and 2 private equity-style co-investment funds.