Babcock & Brown Eyes $2 Billion Indian Infrastructure Investment
Australian investment bank Babcock & Brown has ambitious plans to channel $2 billion into Indian property and infrastructure assets over the next three years. To spearhead this initiative, the firm has recruited nine investment bankers from ABN AMRO, forming a dedicated team that commenced operations on Monday.
Strategic Allocation and Team Formation
Mr. Jaginder Singh Pasricha, the executive director for business development in India, revealed to Reuters that he has dedicated the past year to devising a strategy for deploying up to 40% of a substantial $1 billion Asia infrastructure fund in India. This week, he successfully assembled a new team of infrastructure specialists, all in one swift move. "We know we’re the new boys on the block," Pasricha acknowledged.
Targeting Key Infrastructure Sectors
The newly formed Babcock & Brown team will actively engage with Indian companies involved in developing crucial infrastructure projects, including roads, ports, airports, and power plants. Elaborating on their approach, Pasricha stated, "We’d look to partner companies with some existing expertise with infrastructure." He further clarified, "It could be a contractor with a few projects who needs a bit of hand holding and, if possible, a bit of capital."
India's Infrastructure Investment Landscape
The increasing allure of Indian infrastructure for investors stems from the government's estimation that approximately $500 billion will be required by 2012 for constructing new roads, airports, and power plants. This significant investment is deemed necessary to keep pace with the nation's rapidly expanding economy. Investors are, therefore, increasingly drawn to opportunities within this sector.