LONDON, May 24 (Reuters) - 3i Group PLC is takingover the European infrastructure fund management business run byBarclays as part of a plan to boost fee income frompublic-private partnerships and energy investment projects.
The private equity firm, which is aiming to become one ofEurope's biggest investors in infrastructure, said the dealannounced on Friday would complement its existing business at 3iInfrastructure and help it to raise new funds and source newinvestment opportunities.
Barclays Infrastructure Funds Management Limited (BIFM) hasaround 780 million pounds ($1.2 billion) of assets undermanagement and is run by an investment team based in London andParis. Since its launch in 1996, the business has invested 1.7billion pounds across six funds.
Financial terms of the proposed transaction were notdisclosed but the annual asset management fees earned by BIFMare expected to cover its operating costs, 3i said.