The announcement by Babcock & Brown’s new chief executive, Michael Larkin, that the company would simplify its business was a tacit admission that its business model – initially developed by compatriot and rival Macquarie – was outdated.

The investment model pioneered by Macquarie involved buying infrastructure assets in sectors such as energy, ports and utilities, before spinning them off into listed satellites and taking fees. This model – in which Babcock & Brown paid top dollar for assets and then became debt-laden – has failed.