managers buy out b&b european infrastructure

* Newly formed Arcus Infrastructure buys Babcock fund

* Seven partners and 33 staff join new firm


LONDON, July 23 (Reuters) - A team of former Babcock & Brown staff have taken over the firm's 2.2 billion euro ($3.13 billion) European infrastructure fund in the latest spin-out from the failed Australian investment firm.

Arcus Infrastructure Partners is led by senior partner Simon Gray, managing partner Toto Lo Bianco and five other partners. It bought all of Babcock's interests in Babcock & Brown European Infrastructure Fund (BBEIF) for an undisclosed sum and will rename it Arcus European Infrastructure Fund 1, Arcus said.

"It's the same senior team that established BBEIF in 2007 and I'm absolutely delighted that the period of uncertainty for the fund has now been resolved," Lo Bianco said in a statement.

The move follows similar spin-outs of Babcock's UK-listed public partnerships fund, renamed International Public Partnerships Ltd (INPP.L), and its North American infrastructure fund by management and the John Hancock Life Insurance Co. [ID:nN17287902]

The seven Arcus partners were senior members of Babcock's European infrastructure team and will be joined by 33 former colleagues. Gray was head of European infrastructure mergers and acquisitions while Lo Bianco was a board member of the Babcock infrastructure fund team.

Babcock said in August 2008 that the fund had uncommitted capital of 1.3 bln euros, having made investments in Angel Trains, Portuguese toll road operator Brisa (BRI.LS), Forth Ports Plc (FPT.L) and a transmission-mast portfolio built from the acquisitions of Watersite and Sphere Group.

In December the fund agreed to buy a stake in Euroports, one of Europe's largest port operators, from Australian sister fund Babcock & Brown Infrastructure Ltd (BBI.AX).

Arcus declined to comment on the investments in the portfolio and the strategy for the remaining uninvested capital.

souce http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLN21965620090723


Don't know what sought of effect the buyout will have on euroports sale.

NB: I hold BEPPA