Babcock & Brown, an Australian-listed investment management group, has joined the scramble for European infrastructure assets by raising €2.2bn ($3.2bn) for its first dedicated fund in the region.

Babcock & Brown said its European Infrastructure Fund had exceeded its €1.5bn target and will look for investments in the energy, water and transport sectors as well as other critical infrastructure assets. Babcock has also bought Ireland's national phone oeprator Eircom.