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Macquarie Group

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Macquarie Group Limited
Company typePublic
ASX: MQG
OTC Pink: MQBKY
IndustryDiversified Financials
FoundedSydney, Australia (1970)
HeadquartersNo. 1 Martin Place
Sydney, Australia
Key people
Kevin McCann, Chairman
Nicholas W. Moore, CEO
ProductsFinancial Services
RevenueAUD A$7.0 billion (2012)[1]
AUD A$730 million (2012)
Total assetsAUD A$154 billion (2012)
Number of employees
14,200 (June 2012)
Websitewww.macquarie.com.au

Macquarie Group Limited is a global investment banking and diversified financial services group, providing banking, financial, advisory, investment and funds management services to institutional, corporate and retail clients and counterparties around the world. Headquartered in Sydney, Macquarie is the largest investment bank and the top ranked mergers and acquisitions advisor in Australia.[2]

Macquarie is listed in Australia (ASX:MQG) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker.

On 26 April 2012 Macquarie announced a net profit after tax for the year to 31 March 2012 of A$730 million.

History

Macquarie was founded in 1969 and it began its operation, with only three staff, from Sydney in January 1970 as Hill Samuel Australia, a subsidiary of the UK's Hill Samuel.

In 1981, in response to changes evolving from the deregulation of financial markets, Hill Samuel Australia commenced work on a proposal to become a trading bank. Authority for Hill Samuel Australia to become Macquarie Bank Limited (MBL) was received from the Federal Treasurer in 1985, making it only the second private trading bank to be established in Australia in modern times.

Macquarie took its name from Lachlan Macquarie, an early Governor of New South Wales who dramatically transformed the early settlement in Australia from a penal colony into a dynamic economy.

Macquarie Bank took over Hill Samuel Australia and opened its doors for business in 1985 in Sydney. A trading bank was opened in Melbourne the same year and in Brisbane in November 1986.

The company listed on the ASX in 1996, and on 30 October 1996 entered the ASX's All Ordinaries Index, with a market capitalisation of approximately $1.3 billion. In 2007, MBL securityholders and the Federal Court approved the restructure of the Macquarie group into a non-operating holding company (NOHC) structure. The NOHC and ultimate parent of the Macquarie group, Macquarie Group Limited, is ASX listed.[3] Macquarie Group is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker.[4]

Macquarie manages a number of listed and unlisted investment funds which contributed approximately 12 percent of Macquarie’s total underlying operating income for the half year ended 30 September 2009. The funds own assets that deliver services including transport, roads, airports and utilities.

Global reach

1 Martin Place, Sydney: global headquarters
101 Collins Street, Melbourne office

Macquarie employs more than 14,000 staff in more than 70 office locations across 28 countries.[4] Macquarie's operations are now global with staff located in the following countries: Australia, Austria, Brazil, Canada, China, Germany, France, Argentina, India, Indonesia, Ireland, Luxembourg, Japan, Korea, Malaysia, Mexico, Netherlands, New Zealand, Philippines, Russia, Singapore, South Africa, Sweden, Switzerland, Thailand, United Arab Emirates, United Kingdom and the United States.

In 2009 Macquarie acquired:

  • The equity derivatives and structured products business of German private bank Sal. Oppenheim
  • Blackmont Capital Inc, a Canadian wealth management business, from CI Financial
  • Fox-Pitt Kelton Cochran Caronia Waller, a leading specialist investment bank focused on financial institutions
  • Delaware Investments, a leading US-based diversified asset management firm, from Lincoln Financial Group
  • Tristone Capital Global Inc, an independent energy advisory firm
  • The wholesale electricity trading business of US firm Integrys Energy

Business structure

Macquarie's business activities are organised into five principal operating groups: Macquarie Capital (formerly Investment Banking Group), Macquarie Securities Group (MSG), Fixed Income, Currencies and Commodities (FICC) (formerly Treasury and Commodities Group (TCG)), Macquarie Funds Group (MFG), and the Banking and Financial Services Group (BFS).[5] In addition to the operating groups, Macquarie has a network of support areas: Corporate Affairs Group, Market Operations and Technology (Formerly Information Technology Group) and Risk Management Group.

Macquarie's managing director and chief executive officer is Nicholas Moore, who replaced Allan Moss in May 2008, and the board chairman is . David Clarke served as Executive Director from 1985 to 2007, and Chairman from 2007 to 2011.[6]

In 2005 Macquarie announced a hostile takeover bid for the London Stock Exchange valuing the company at £1.5 billion, a bid rejected by LSE management as "derisory".

In 2007 the bank, together with a number of private equity firms, unsuccessfully attempted to take over Qantas.

The Macquarie Group Foundation

The Macquarie Group Foundation was formally established in 1984 and in the year to 31 March 2012, contributed A$21.3 million to more than 900 community organisations globally.

Current Board members

Notable current and former employees

Business

Public service

Macquarie Bank maintains very strong political connections through the appointment of former politicians and senior political staffers to senior positions.

Macquarie Group's logo is a representation of the 'Holey dollar', Australia's first coinage, created by Governor Macquarie to overcome a currency shortage faced by the early Australian settlers. The official explanation is that Governor Macquarie's creation of the Holey Dollar was "an inspired solution to a difficult problem and for this reason it was chosen as the symbol of the Macquarie Group."

Criticism

Macquarie Group through its subsidiary Macquarie Equipment Rentals has allegedly been perpetrating a Telco finance scam. Macquarie Equipment Rentals has sued over 300 victims of the scam which involves bundling a finance equipment contract with a contract from a small telecommunications company, often obscuring that the finance contract exists.[7]

The scam involves the telecommunications company promising free equipment such as Plasma TVs, while offering a lower cost phone deal that offsets the cost of the equipment. The victim is then tricked into signing two contracts with the true costs often hidden, whilst being verbally promised that they will be free. The telecommunications company is paid an upfront fee by the finance company, and sometime later disappears. The victim is then left with an inflated finance company lease that requires the victim to pay often tens of thousands of dollars for equipment that in reality costs a fraction of the price.[8]

In January 2009, over 60 people demonstrated outside the Macquarie's office in Vancouver, BC, Canada. They protested Macquarie's involvement in the controversial Gateway Program which they claimed would dramatically increase greenhouse gas emissions, local pollution, and sprawl.[9]

The company's high margins and profits, and the rewards for its executives and shareholders, have seen the Australian media label the bank "The Millionaire Factory".

See also

References

  1. ^ "Annual Results 2012" (PDF). Macquarie Group. Retrieved 26 April 2012.
  2. ^ ThomsonReuters.com
  3. ^ Macquarie.com.au
  4. ^ a b Macquarie.com.au
  5. ^ "Macquarie's six major business Groups". Macquarie Group.
  6. ^ Sydney Morning Herald (2011). Macquarie veteran dies. Retrieved 9 April 2011.
  7. ^ "Samuel slams Macquarie over telco scam". The Sydney Morning Herald. 1 November 2010.
  8. ^ http://www.abc.net.au/news/stories/2010/11/01/3053274.htm
  9. ^ "Macquarie's Offices In Lock Down". blog.
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