Macquarie Group
Macquarie Group Limited (/məˈkwɔːri/) is an Australian global financial services group. Headquartered and listed in Australia (ASX: MQG), Macquarie employs more than 20,000 staff[2] in 34 markets,[3] is the world's largest infrastructure asset manager[4] and Australia's top ranked mergers and acquisitions adviser,[5] with more than A$871 billion in assets under management.[1]
Company type
- ASX: MQG
- S&P/ASX 200 component
10 December 1969
50 Martin Place
Sydney, New South Wales, Australia
Worldwide
Glenn Stevens (Chairman)
Shemara Wikramanayake (CEO)
A$19.122 billion (2023)[1]
A$5.182 billion (2023)[1]
A$871 billion (2023) [2]
20,105 (2023) [2]
Delaware Investments, Thames Water, Arqiva (25%), One Rail Australia (49%), Blue Leaf Energy, Hobson Wealth Partners, Fox-Pitt Kelton Cochran Caronia Waller, Matrix Business Technologies, Matrix Networks Group, MQ Capital, Network Finance Company, Cincinnati Bell
The group's logo was inspired off the holey dollar, Australia's first coinage which was designed by Governor Macquarie.[6]
History[edit]
1969–1979[edit]
Macquarie was founded on 10 December 1969 as Hill Samuel Australia Limited, a subsidiary of the UK's Hill Samuel & Co. Limited.[7]
Australian businessman Stan Owens compiled a proposal for Hill Samuel & Co. to establish an Australian subsidiary. After presenting his report in London, Mr Owens was offered the role of implementing it. He became Executive Chairman of Hill Samuel Australia (HSA) and founded the company from offices at Gold Fields House in Sydney's Circular Quay. The company's first three employees were Stan Owens, Blair Hesketh and Geoff Hobson. Later Chris Castleman (on loan from the British parent) and Bill Clarke joined. David Clarke and Mark Johnson were introduced to HSA and became joint managing directors in 1971. Despite being given a four-year allowance by the British parent to turn a profit, HSA was profitable by the end of its first twelve months of trading.
In 1971, HSA secured Australia's biggest mandate at the time, a US$60 million financing for corrugated iron manufacturer John Lysaght Australia. HSA expanded its presence in the Australian market, opening a Melbourne office in 1972, and a Brisbane office in 1975.
In other business initiatives during the decade, HSA helped pioneer the foreign currency hedge market in Australia, commenced gold bullion trading, extended its coverage to all listed commodities and was one of the first merchant banks to be granted floor member status at the Sydney Futures Exchange.
1980–1989[edit]
The 1980s were marked by significant financial market deregulation in Australia, including the floating of the Australian dollar and the removal of restrictions on foreign banks. To take advantage of the opportunities offered by deregulation, HSA submitted a proposal for the formation of a new substantially Australian owned and controlled bank to be called Macquarie Bank Limited.[8] Authority for HSA to become Macquarie Bank Limited (MBL) was received from the Federal Treasurer Paul Keating on 28 February 1985, making it only the second private trading bank to be established in Australia in modern times.[9]
The bank continued to grow its activities in the 1980s. It became Australia's leading bullion trader, initiated 24-hour foreign exchange trading, commenced stockbroking and corporate leasing activities, opened offices in London and Munich, expanded into funds management by establishing Australia's first cash management account and formed a new structured finance business which would grow to become one of the largest in the world.[8] It also implemented the risk management framework which is credited for the organisation's long history of unbroken profitability. The framework ensured Macquarie was not materially exposed to the October 1987 global share market crash.[10]
In other initiatives, Macquarie established its philanthropic arm, the Macquarie Group Foundation, which has since contributed more than $A330 million to community organisations around the world, and established what has become one of Australia's largest corporate art collections, the Macquarie Group Collection.[11]
1990–1999[edit]
On 29 July 1996, Macquarie Bank Limited listed on the Australian Securities Exchange (ASX:MQG).[12] By 30 October 1996 Macquarie had entered the ASX All Ordinaries Index, with a market capitalisation of approximately A$1.3 billion and would grow to more than A$35 billion in 2018[13] to become one of Australia's largest listed companies.
Macquarie continued its overseas expansion during the early 1990s, opening offices in New York, Hong Kong, Singapore and Beijing, while extending its Australian operations to Perth and the Gold Coast. Acquisitions during the decade included Boston Australia Limited, Security Pacific Australia and the investment banking arm of Bankers Trust Australia.[14]
In 1994, Macquarie began its infrastructure investment business with the underwriting and placement of publicly listed equity for the Hills Motorway in Sydney.[8] It has continued to grow these activities to become the world's leading infrastructure manager.[15] During the decade, Macquarie also launched its private banking and residential mortgages businesses and established a number of real estate and investment trusts.[16]
2000–2009[edit]
Macquarie continued to expand its Asia operations in the early 2000s with the opening of offices in Seoul and Tokyo in 2000, and through the acquisition of ING Group's Asian cash equities business in March 2004.[17]
The decade was also marked by the global expansion of Macquarie's infrastructure business, with infrastructure investment funds established in Korea, China, Europe, Russia, India and the Middle East. On 16 December 2004, Macquarie Infrastructure Corporation began trading as Macquarie Infrastructure Company Trust on the New York Stock Exchange (NYSE:MIC).[18]
Macquarie made a number of significant acquisitions, particularly in the US, in the later part of the 2000s. These included US energy marketing and trading company Cook Inlet Energy Supply, establishing Macquarie's physical natural gas trading business in the US, and Constellation Energy's Houston-based downstream natural gas trading operations. As at 2018 Macquarie Group is the second largest physical gas trader in North America.[19]
Other acquisitions included UK gas supply company Corona Energy in August 2006 and, in 2009, independent energy advisory firm Tristone Global Capital Inc; specialist investment bank Fox-Pitt Kelton Cochran Caronia Walker; Canadian wealth management business Blackmont Capital Inc; the wholesale electricity trading business of US firm Integrys Energy; US-based fixed income fund manager Allegiance Investment Management; the equity derivatives and structured products business of German private bank Sal. Oppenheim; and Condor Ferries service between the UK, Channel Islands and France.[20][21]
In 2005, Macquarie announced an unsolicited takeover bid for the London Stock Exchange valuing the company at £1.5 billion, a bid rejected by LSE management.[22]
In 2007, MBL securityholders and the Federal Court approved the restructure of the Macquarie Group into a non-operating holding company (NOHC) structure.[23]
Macquarie employs more than 20,000 staff in 33 countries.[13] Macquarie's business activities are organised into four principal operating groups.[13]
There are two annuity-style businesses:
There are two markets facing businesses:
In addition to the principal operating groups, Macquarie has a network of support groups comprising: Corporate Operations Group (COG), Financial Management Group (FMG), Legal and Governance Group (LGG) and Risk Management Group (RMG).
Macquarie's Managing Director and CEO is Shemara Wikramanayake, who replaced Nicholas Moore in December 2018.[43]
In the financial year ending 31 March 2021, Macquarie reported a record net profit A$3.015 billion and a final dividend per ordinary share of A$4.70 per share.[44]
Macquarie holds a number of licences enabling it to conduct activities in the jurisdictions in which it operates and is regulated by a significant number of regulators globally. In Australia, Macquarie Bank Limited holds a banking licence and as an authorised deposit-taking institution (ADI), is supervised by the Australian Prudential Regulation Authority (APRA). Other key Australian regulators include the Australian Securities & Investments Commission (ASIC) and AUSTRAC. Globally, key regulators include the UK FCA and PRA; US CFTC, FINRA, NFA, FERC, SEC and Federal Reserve Board; IIROC; MAS; Hong Kong SFC; HKMA; SEBI; Japan FSA; Korean FSS; and New Zealand FMA.
Macquarie Group's current Board of Directors includes:
Philanthropy[edit]
Macquarie's philanthropic arm, the Macquarie Group Foundation, has contributed more than A$475 million globally since 1985 with its community investment strategy. Recipients include the Clontarf Foundation and The Centre for Social Impact.
The firm's collection of artworks, the Macquarie Group Collection, established in 1987 to support emerging artists and displayed in more than 40 Macquarie offices worldwide, is one of world's largest corporate collections of Australian art comprising more than 850 individual works.
Official website
Media related to Macquarie Group at Wikimedia Commons