Balfour Beatty out of infrastructure firm

05 July 2016

Leo Quinn, Balfour Beatty CEO

Leo Quinn, Balfour Beatty CEO

Balfour Beatty Infrastructure Partners LLP (BBIP) is being renamed and rebranded as Basalt Infrastructure Partners, with UK-based international infrastructure group Balfour Beatty leaving the group.

BBIP is an infrastructure investment firm which was set up in 2010.

In addition, Balfour Beatty has disposed of its entire interest in Balfour Beatty Infrastructure Partners LP, the infrastructure fund advised by BBIP.

It said its interest had been sold to entities controlled by investment management firm Wafra Investment Advisory Group.

Basalt, which will be establishing itself as an independent fund management business that will be 100% owned by the partners of the firm, said its investment strategy would continue to focus on mid-market infrastructure assets in the energy, transport and utilities sectors in Western Europe and North America.

Basalt managing partner Rob Gregor said, “This is a major step forward for the firm, which puts us in a position of strength as we look to the future, and will allow us to continue the development of Basalt’s investment activities.

“Importantly, it will also enhance our ability to attract and retain outstanding team members.”

BBIP was set up in November 2010 as an independently-managed infrastructure management business focusing on secondary opportunities. Balfour Beatty said it had been run “at arm’s length” to its investments portfolio.

The sale of the interest in the fund to Wafra is for an initial cash consideration of $64.4 million (€57.71 million), payable on signing.

Balfour Beatty said it also had the right to receive additional cash consideration, depending on further fundraising by BBIP after the sale, in addition to a proportion of the carried interest it was retaining.

It said the proceeds of the transaction would be retained within the Balfour Beatty Group.

Leo Quinn, CEO of Balfour Beatty, said, “Our exit from BBIP and sale of the fund interest further simplifies the group and maintains our existing balance sheet strength.

“Exiting the infrastructure fund management market will allow our core infrastructure investments business to focus entirely on its highly successful primary investments portfolio which also offers further downstream opportunities for the Balfour Beatty Group.”

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