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|Traded as||ASX: MQG
OTC Pink: MQBKY
|Headquarters||50 Martin Place
Sydney, New South Wales
|Peter Warne (Chairman)
Nicholas Moore (CEO)
|Products||Asset management, Investment banking, Corporate banking, Private equity, Equities trading, Commodity trading, Futures and options trading, Foreign exchange trading, Money market trading, Consumer Banking, Wealth management, Investment Management|
|A$10.13 billion (2016)|
|A$2.06 billion (2016)|
|AUM||A$478.6 billion (2016)|
Number of employees
|Capital ratio||10.7% (2016)|
Macquarie Group Limited is a global investment banking and diversified financial services group, providing banking, financial advisory and investment and funds management services to institutional, corporate and retail clients and counterparties around the world. Headquartered in Sydney, Macquarie is the largest Australian investment bank and the top ranked mergers and acquisitions advisor in Australia.
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.
The company's high margins, profits and the lucrative rewards for its executives and shareholders saw the Australian media label the bank "The Millionaire Factory" due to their notably strong performances. As of May 6, 2016, the group's chief executive Nicholas Moore became the nation's highest paid CEO of a listed company as they announced a net profit after tax for the year at A$2.06 billion.
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.
Hill Samuel initially sought the advice of Sir John Marks, of Development Finance Corporation (DFC), regarding the establishment of an Australian subsidiary, however he suggested that Stan Owens instead be the one to compile a proposal for consideration. After presenting his report in London, Mr Owens was offered the role of implementing it by Hill Samuel's Chairman, Kenneth Keith, Baron Keith of Castleacre. Mr Owens became Executive Chairman of Hill Samuel Australia (HSA) and founded the company in 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 (both formerly of Darling & Co) were introduced to HSA and became joint Managing Directors. 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 $US60 million financing for corrugated iron manufacturer John Lysaght Australia. 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. In 1983 Stan Owens died and was succeeded by David Clarke. 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 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. 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. Macquarie Group is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker.
In 2009 Macquarie acquired: Condor Ferries, service between the UK, Channel Islands and France; 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.
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.
Recent news and investments
Later in May that year, the group jointly acquired Australia's largest owner of mobile phone towers Crown Castle Australia Holdings for an undisclosed price, rumoured to be in the region of $1.62 billion, from its ultimate owner, Crown Castle International Corp.
Macquarie employs 14,372 staff in 27 countries around the world.
Macquarie’s business activities are organised into five principle operating groups:
- Macquarie Capital – Provides corporate finance services, including mergers and acquisitions, debt and equity capital markets, and principal investments
- Macquarie Asset Management – The world’s biggest infrastructure asset manager, providing infrastructure, real assets and securities investment management services
- Commodities and Global Markets – Execution, research, derivatives, trading, fixed income, foreign exchange and commodities
- Banking and Financial Services – Comprises Macquarie’s personal banking, wealth management and business banking products and services
- Corporate and Asset Finance – Consists of an asset finance business, with interests in; aircraft, motor vehicles, rail, resources, energy and equipment finance.
In addition to the principle 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 Nicholas Moore, who replaced Allan Moss in May 2008.
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.
- Nicholas W. Moore - Managing Director, Chief Executive Officer and Executive Voting Director.
- Gary R Banks AO - Independent Voting Director; Dean and Chief Executive Officer of the Australia and New Zealand School of Government.
- Gordon M Cairns - Independent Voting Director; Chairman of Woolworths Limited and Origin Energy Limited and former chairman of David Jones Limited and Rebel Group Pty Limited.
- 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.
- Patricia A Cross - Independent Voting Director; a Director of Aviva Plc Group and the Australian Institute of Company Directors, Founding Director of the Grattan Institute.
- 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.
- 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 current and former employees
- Simon Hannes - executive director and investment banker, convicted of insider trading
- Greg Coffey - hedge fund manager
- Jeremy Balkin - author
Macquarie Bank maintains political connections through the appointment of former politicians and senior political staffers to senior positions.
- Bob Carr - Premier (1995–2005) of the Australian state of New South Wales
- Max Moore-Wilton - former Secretary of the Australian Department of the Prime Minister and Cabinet to John Howard
- Graeme Samuel - chairman of the Australian Competition and Consumer Commission (2003–present)
- Warwick Smith - former Australian Federal Cabinet Minister
- Alan Stockdale - former Treasurer of the Australian state of Victoria
In 1813 Governor Lachlan Macquarie overcame an acute currency shortage in the colony of New South Wales by importing 40,000 Spanish silver dollars and punching a hole through the centre of them to create two unique coins, the ‘Holey Dollar’ and the ‘Dump’. The introduction of the currency stimulated the economy while retaining its intrinsic value, with the two new coins – the 'Holey Dollar' and the 'Dump' – worth 25 per cent more than the original.
According to Macquarie Group, the ‘Holey Dollar’ was Australia’s earliest example of ‘financial innovation’ and ‘embodies its pursuit of practical approaches with profitable outcomes’.
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.
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.
The company's high margins and profits, and the rewards for its executives and shareholders, saw the Australian media label the bank "The Millionaire Factory" up until its share price fell almost 85% in early 2009.
- 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
- "2016 Annual Report - Macquarie Group" (PDF). Retrieved 12 January 2017.
- "Return of the 'millionaire's factory': Macquarie Bank splashing the cash again". The Sydney Morning Herald.
- "About - History - Macquarie Group".
- "Company profile - Macquarie Group".
- EnBW sells offshore windpark stake to Macquarie for 720 million euros. Reuters, 8 January 2015
- Macquarie-led group pays $1.6 billion for Crown Castle wireless towers, Reuters, 14 May 2015
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- http://www.modd.com.au, MODD Digital Design -. "The 1813 Holey Dollar - our first coin, rare & desirable". Coin Works. Retrieved 2017-01-17.
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- "Samuel slams Macquarie over telco scam". The Sydney Morning Herald. 1 November 2010.
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- "Can Macquarie Again Become a Millionaires Factory?".