Macquarie Group Limited () is an Australian multinational independent investment bank
and financial services
company. Headquartered and listed in Australia (), Macquarie employs more than 15,000 staff in 31 markets,
is the world's largest infrastructure asset manager
and Australia's top ranked mergers and acquisitions
adviser, with more than A$595 billion in assets under management.
The company's operating groups include Banking and Financial Services, Commodities and Global Markets, Macquarie Asset Management and Macquarie Capital.
Macquarie was founded on 10 December 1969 as Hill Samuel Australia Limited, a subsidiary of the UK's Hill Samuel & Co. Limited
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.
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.
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.
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.
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.
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.
On 29 July 1996, Macquarie Bank Limited listed on the Australian Securities Exchange
(ASX:MQG). 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
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
, 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
In 1994, Macquarie began its infrastructure investment business with the underwriting and placement of publicly listed equity for the Hills Motorway
It has continued to grow these activities to become the world's leading infrastructure manager. During the decade, Macquarie also launched its private banking and residential mortgages businesses and established a number of real estate and investment trusts.
Macquarie continued to expand its Asia operations in the early 2000s with the opening of offices in Seoul
in 2000, and through the acquisition of ING Group's
Asian cash equities business in March 2004.
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
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.
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.
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.
In 2007, MBL securityholders and the Federal Court
approved the restructure of the Macquarie Group into a non-operating holding company (NOHC) structure.
2010–present and controversies
In 2010, Macquarie Group completed its then largest acquisition with the purchase of Delaware Investments
, a leading US-based diversified asset management firm, from Lincoln Financial Group
. As a result of the acquisition, Macquarie became one of the world's top 50 asset managers. Delaware Investments was re-branded as Macquarie Investment Management in 2017.
Macquarie has significantly grown its renewable energy
activities this decade. In January 2015, Macquarie Group acquired a stake in Baltic 2 offshore wind park from EnBW
for a fee totaling €720 million. Macquarie Group led a consortium of bidders to successfully acquire the UK Green Investment Bank
, now known as Green Investment Group, for £2.3 billion.
In March 2015, Macquarie announced the acquisition of a $US4 billion aircraft operating lease portfolio from AWAS Aviation Capital Limited, bringing Macquarie's portfolio up to more than 220 airplanes. In October Macquarie entered into an agreement to acquire the A$8.2 billion Esanda dealer finance portfolio from ANZ Banking Group
In June 2017, Macquarie's Commodities and Global Markets business completed its acquisition of Cargill Inc's ARG.UL
petroleum business as well as its North America power and gas business. The transaction expanded Macquarie's global financial and physical oil business footprint to include Geneva and Minneapolis.
In March 2020, Cincinnati Bell
, which also owns Hawaiian Tel
since their July 2018 merger, merged with Macquarie Infrastructure and Real Assets (MIRA).
In the wake of the coronavirus pandemic, $A20 million was allocated to the Macquarie Group Foundation to support non-profits working to combat COVID-19 and provide relief to affected communities. The fund will focus on recipients addressing areas of immediate and medium-term need in regions in which Macquarie operates.
Macquarie employs more than 14,000 staff in 25 countries.
Macquarie's business activities are organised into five principal operating groups.
There are two annuity-style businesses:
Macquarie Asset Management – The world's biggest infrastructure asset manager and a top 50 global asset manager, managing more than $A495 billion of assets on behalf of superannuation funds and other institutional investors
: Macquarie Asset Management oversees three stand-alone businesses:
:* Macquarie Infrastructure and Real Assets (MIRA) – Infrastructure, real estate, agriculture and energy
:* Macquarie Investment Management
(MIM), formerly Delaware Investments
– Equities and fixed income portfolios
:* Macquarie Specialised Investment Solutions (MSIS) – Structured products
Banking and Financial Services – Comprises Macquarie's retail banking operations and provides personal banking, wealth management and business banking products and services to more than 1 million clients.
There are two capital markets facing businesses:
Commodities and Global Markets – Conducts research on more than 2,300 stocks and market trading on behalf of clients across more than 160 products including equities, derivatives, fixed income, foreign exchange and commodities.
Macquarie Capital – Advises companies on growth opportunities, sources investment funds, negotiates transactions and lists companies on the share market, as well as investing alongside clients.
In addition to the principal operating groups, Macquarie has a network of support groups including: Corporate Operations Group, Financial Management Group, Legal and Governance Group and Risk Management Group.
Macquarie's Managing Director and Chief Executive Officer is Shemara Wikramanayake, who replaced Nicholas Moore in December 2018.
In the financial year ending 31 March 2020, Macquarie reported a record net profit A$2.731 billion and a final dividend per ordinary share of A$4.30 per share.
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
; US CFTC
and Federal Reserve
; Hong Kong SFC
; Japan FSA
; Korean FSS
; and New Zealand FMA
Board of directors
Macquarie Group's current Board of Directors includes:
* Peter H Warne - Independent Chairman and Independent Voting Director;
a Director of ASX Limited
and former Head of Bankers Trust Australia Limited's
Financial Markets Group.
* Shemara Wikramanayake - Managing Director, Chief Executive Officer and Executive Voting Director.
* Jillian Broadbent AO - Independent Voting Director;
Chair of the Board of Swiss Re Life and Health Australia, Chancellor of the University of Wollongong
and a director of Woolworths Group Limited
, the National Portrait Gallery of Australia
and the Sydney Dance Company
* Phillip Coffey - Independent Voting Director;
Non-Executive Director of Lendlease Corporation Limited
, a member of the Clean Energy Finance Corporation
Board and Chairman of the Westpac
* Michael J Coleman - Independent Voting Director;
Adjunct Professor at the Australian School of Business at the University of New South Wales
, Chairman of Planet Ark
Environmental Foundation and former Senior Audit Partner with KPMG
* Diane J Grady AM - Independent Voting Director;
a member of the McKinsey Advisory Council and a Director of Spotless Group Holdings Limited
and Tennis Australia
* Michael J Hawker - Independent Voting Director;
a Director of Aviva Plc Group
Lead Independent Director of Washington H. Soul Pattinson and Company Limited
and former CEO of Insurance Australia Group
*Glenn R Stevens AC – Independent Voting Director,
a director of the Anika Foundation and the Lowy Institute and former Governor
of the Reserve Bank of Australia
* Nicola M Wakefield-Evans - Independent Voting Director;
a Director of Lend Lease Corporation Limited
, Toll Holdings Limited
and BUPA Australia and New Zealand Group
Notable former employees
* Christopher Castleman - General Manager Hill Samuel Australia (1970-1971)
* David Clarke - Joint Managing Director Hill Samuel Australia (1971-1977), Managing Director Hill Samuel Australia (1977-1984), founding Chairman of Macquarie Bank Limited (1984-2011)
* Mark Johnson - Joint Managing Director Hill Samuel Australia (1971-1977), Director and/or Deputy Chairman Macquarie Bank Limited (1987-2007)
* Tony Berg - Managing Director and Chief Executive Officer (1984-1993)
* Allan Moss
- Managing Director and Chief Executive Officer (1993-2008)
* Richard Sheppard - Deputy Managing Director (1996-2011)
* Nicholas Moore - Managing Director and Chief Executive Officer (2008-2018)
Macquarie's philanthropic arm, the Macquarie Group Foundation, has contributed more than A$330 million globally since 1985 with its community investment strategy “to support social innovation
, and to strengthen the impact of non-profit organisations by funding capacity building
.”. 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.
In 2018, the Macquarie group was being investigated for massive tax fraud in several European countries over long periods. Macquarie's internal documents, reviewed by a collaboration between 17 European media, showed that Macquarie continued to make money available for speculation and fraud with dividend tax after their legal advisers expressed concern.
Macquarie Group, through its subsidiary Macquarie Equipment Rentals, was criticised by the Australian Competition and Consumer Commission
for suing 300 small businesses caught up in misleading telephony bundling deals.
In 2017, Macquarie, via a deal in which it acquired Thames Water
, a private utility company responsible for public water supply and waste water treatment in the London region of the UK, was found to have transferred to Thames Water £2bn of debt before selling its stake in the company. These disclosures followed scrutiny of the possible financial causes of Thames Water's extensive pollution of the Thames, and other rivers, with untreated sewage between 2012 and 2014, for which Thames Water was fined a record £20m. In response to criticism, Macquarie noted that during its tenure Thames Water invested more than £11 billion, or around £1 billion per year, more than twice that invested during the five-year period before privatisation in 1989.
The Lee Tunnel
was commissioned in January 2010 and opened by Mayor of London Boris Johnson
, in January 2016. The capital investment undertaken to London's water supply was the first major investment since the Victorian era.
* Australian real estate investment trust
* Banking in Australia
* Better Place
* List of banks
* List of banks in Australia
* List of banks in Oceania
* Macquarie Power & Infrastructure Income Fund
* Kemble Water Holdings Limited
* Macquarie Airports
* Southern Cross Media Group
Macquarie Infrastructure and Real Assets (MIRA)
Category:Banks of Australia
Category:Companies listed on the Australian Securities Exchange
Category:Financial services companies based in Sydney
Category:Banks established in 1969
Category:Financial services companies established in 1969
Category:Australian companies established in 1969
Category:1996 initial public offerings