Macquarie Group
Encyclopedia
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
.
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 30 October 2009 Macquarie announced a net profit after tax for the half year to 30 September 2009 of A$479 million, an increase of 79% on the prior half and a decrease of 21% on the prior corresponding first half period. In 2010, however, as a result of subdued market conditions, Macquarie issued two profit downgrades in the space of three months, resulting in a sharp fall in the share price of the company.
'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. Macquarie Group is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker.
Macquarie manages a number of listed and unlisted investment funds which contributed approximately 12 per cent 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.
Macquarie employs more than 15,500 staff in more than 70 office locations across 28 countries. 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, Netherlands, New Zealand, Philippines, Russia, Singapore, South Africa, Sweden, Switzerland, Mexico, Thailand, United Arab Emirates, United Kingdom and the United States.
In 2009 Macquarie acquired:
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.
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
.
', 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."
. 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 while 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.
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.
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".
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
group, providing banking, financial, advisory, investment and funds management services to institutional, corporate and retail clients and counterparties around the world. Headquartered in Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, Macquarie is the largest investment bank and the top ranked mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
advisor in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
.
Macquarie is listed in Australia (ASX:MQG) and is regulated by APRA
Australian Prudential Regulation Authority
The Australian Prudential Regulation Authority is a statutory authority and the prudential regulator of the Australian financial services industry.-Regulatory scope:...
, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker.
On 30 October 2009 Macquarie announced a net profit after tax for the half year to 30 September 2009 of A$479 million, an increase of 79% on the prior half and a decrease of 21% on the prior corresponding first half period. In 2010, however, as a result of subdued market conditions, Macquarie issued two profit downgrades in the space of three months, resulting in a sharp fall in the share price of the company.
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 UKUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
's Hill Samuel
Hill Samuel
Hill Samuel is a wholly owned subsidiary of Lloyds TSB's Offshore Private Banking unit. It was formerly a leading British merchant bank and financial services firm before the takeover by TSB Group Plc. in 1987, which itself merged with Lloyds Bank to become Lloyds TSB in 1995.-History:In 1832,...
.
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
Lachlan Macquarie
Major-General Lachlan Macquarie CB , was a British military officer and colonial administrator. He served as the last autocratic Governor of New South Wales, Australia from 1810 to 1821 and had a leading role in the social, economic and architectural development of the colony...
, 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. Macquarie Group is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker.
Macquarie manages a number of listed and unlisted investment funds which contributed approximately 12 per cent 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
In 2009 Macquarie acquired:
- The equity derivatives and structured products business of German private bank Sal. OppenheimSal. OppenheimSal. Oppenheim jr. & Cie. AG & Co. KGaA is a European Private Bank, currently headquartered in Cologne, Germany. It manages and administers €138 billion of assets and employs around 3,800 employees in more than 30 sites in Germany and Europe...
- Blackmont Capital Inc, a Canadian wealth management business, from CI Financial
- Fox-Pitt Kelton Cochran Caronia WallerFox-Pitt Kelton Cochran Caronia WallerFox-Pitt Kelton Cochran Caronia Waller is an investment bank focused on mergers and acquisitions advisory services, private placements of debt and equity as well as equity research...
, a leading specialist investment bank focused on financial institutions - Delaware InvestmentsDelaware InvestmentsDelaware Investments is a US-based asset management firm with more than $155 billion in assets under management as of June 30, 2011.-Key Historical Years:* 1929: Business commenced* 1938: Delaware Investments introduced its first mutual fund...
, 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). In addition to the operating groups, Macquarie has a network of support areas: Corporate Affairs Group, Information Technology Group and Risk Management Group.Macquarie's managing director and chief executive officer is Nicholas Moore, who replaced Allan Moss
Allan Moss
Allan Moss AO was the Managing Director/CEO of Macquarie Group Ltd. Allan Moss retired from Macquarie Group Limited on 23 May 2008 after a 15 year stint as the CEO of Macquarie. Prior to this Mr Moss was a director of Hill Samuel Australia and led the team responsible for preparing the submission...
in May 2008, and the board chairman is . David Clarke
David S. Clarke
David Stuart Clarke AO was an Australian businessman. He attended Knox Grammar School on Sydney's North Shore, the University of Sydney , and Harvard Business School . Clarke was Executive Chairman of Macquarie Bank from its formation in 1985 until March 2007, when he ceased executive duties...
served as Executive Director from 1985 to 2007, and Chairman from 2007 to 2011.
In 2005 Macquarie announced a hostile takeover bid for the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
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
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
.
The Macquarie Group Foundation
The Macquarie Group Foundation was formally established in 1984 and in the year to 31 March 2009, contributed A$18.3 million to more than 900 community organisations globally. Complementing this contribution, Macquarie staff raised more than A$7.7 million for not-for-profit organisations.Current Board members
- Kevin McCann AM - Independent Chairman; former Partner and Chairman of Allens Arthur RobinsonAllens Arthur RobinsonAllens Arthur Robinson is a commercial law firm that operates in the Asia-Pacific region. In Australia, and throughout the Asia-Pacific region generally, it is considered to be one of the top commercial law firms.- Offices :...
- Michael J. Hawker - Independent Voting Director; former CEO of Insurance Group Australia
- Nicholas W. Moore - Managing Director and Chief Executive Officer; Executive Voting Director
- Peter M. Kirby - Independent Voting Director; former Managing Director of CSR LimitedCSR LimitedCSR Limited is a major Australian industrial company, producing aluminium and building products. It is publicly traded on the Australian Securities Exchange. In 2009, it has approximately 10,000 employees and during a period of a major cyclical downturn the company made an after-tax profit of...
- Catherine LivingstoneCatherine LivingstoneCatherine Brighid Livingstone is an Australian businesswoman, having held influential positions in some of the country’s major industry players including the , Macquarie Bank and Telstra....
AO - Independent Voting Director; former Managing Director of Cochlear LimitedCochlear LimitedCochlear Limited is an Australian company that designs, manufactures and sells the Nucleus Cochlear implant along with the Bone Conduction Hearing Solution Baha osseointegrated bone conduction implant, with an estimated 250 000 cochlear implant/Baha recipients receiving a Cochlear Limited product... - John NilandJohn NilandJohn Rodney Niland AC is an Australian academic and company director. He is currently on the Board of Macquarie Group and Macquarie Bank. Niland obtained a Bachelor and Master of Commerce from the University of New South Wales and was President of the University Union and Students Union when he...
AC - Independent Voting Director; former President of the University of New South WalesUniversity of New South WalesThe University of New South Wales , is a research-focused university based in Kensington, a suburb in Sydney, New South Wales, Australia...
; former Cornell UniversityCornell UniversityCornell University is an Ivy League university located in Ithaca, New York, United States. It is a private land-grant university, receiving annual funding from the State of New York for certain educational missions...
professor - Helen M. NugentHelen NugentHelen Marion Nugent AO is an Australian businesswoman, company director and academic.In 2004, Nugent was appointed as an Officer of the Order of Australia, "for service to the performing arts, to business and the financial services industry, particularly in the area of corporate governance, and to...
AO - Independent Voting Director; Chairman of Funds SA, Swiss Re LifeSwiss ReSwiss Reinsurance Company Ltd , generally known as Swiss Re, is a Swiss reinsurance company. It is the world’s second-largest reinsurer, after having acquired GE Insurance Solutions. The company has its headquarters in Zurich...
, and Health (Australia) Limited - Peter H. Warne - Independent Voting Director; former head of Bankers Trust Australia LimitedBankers TrustBankers Trust was an historic American banking organization. The bank merged with Alex. Brown & Sons before being acquired by Deutsche Bank in 1998.-History:A consortium of banks created Bankers Trust to perform trust company services for their clients....
’s Financial Markets Group
Business
- Simon HannesSimon HannesSimon Gautier Hannes was an Australian senior executive of Macquarie Bank convicted of insider trading over call options bought prior to the takeover of TNT by the Dutch postal service in 1996....
- executive director and investment banker, convicted of insider tradingInsider tradingInsider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company... - Nicholas Moore - CEO
- Greg CoffeyGreg CoffeyGreg Coffey is an Australian hedge fund manager based in London.-Early life and education:Coffey graduated in actuarial studies from Macquarie University. -Career:...
- successful London based hedge fund manager - David Kiely - caught looking at nude pictures of Miranda KerrMiranda KerrMiranda May Kerr is an Australian model. She is best known as one of the Victoria's Secret Angels since mid-2007. She is the first Australian to participate in the Victoria's Secret campaign and also represents Australian fashion chain David Jones...
Public service
Macquarie Bank maintains very strong political connections through the appointment of former politicians and senior political staffers to senior positions.- Bob CarrBob CarrRobert John "Bob" Carr , Australian statesman, was Premier of New South Wales from 4 April 1995 to 3 August 2005. He holds the record for the longest continuous service as premier of NSW...
- Premier (1995–2005) of the Australian state of New South WalesNew South WalesNew South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales... - Max Moore-WiltonMax Moore-WiltonMaxwell William "Max" Moore-Wilton AC is an Australian corporate executive and former public servant, colloquially known as "Max the Axe"....
- former SecretarySecretaryA secretary, or administrative assistant, is a person whose work consists of supporting management, including executives, using a variety of project management, communication & organizational skills. These functions may be entirely carried out to assist one other employee or may be for the benefit...
of the Australian Department of the Prime Minister and CabinetDepartment of the Prime Minister and Cabinet (Australia)The Department of the Prime Minister and Cabinet is an Australian Government department. The Department was first established in 1911...
to John HowardJohn HowardJohn Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies.... - Graeme SamuelGraeme SamuelGraeme Julian Samuel AC is an Australian businessman. He is currently works as chairman of the Melbourne office of investment bank Greenhill Caliburn, and is a member of the Australian National University Council...
- chairman of the Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionThe Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...
(2003–present) - Warwick SmithWarwick Smith (politician)Warwick Leslie Smith AM is an Australian politician, and was a Liberal member of the Australian House of Representatives from December 1984 to March 1993 and again from March 1996 to October 1998, representing the Division of Bass, Tasmania....
- former Australian Federal Cabinet Minister - Alan StockdaleAlan StockdaleAlan Robert Stockdale is the current president of the Liberal Party and a former Victorian state Deputy Liberal leader. He was Treasurer of Victoria in the government of Jeff Kennett from 1992 to 1999....
- former TreasurerTreasurerA treasurer is the person responsible for running the treasury of an organization. The adjective for a treasurer is normally "tresorial". The adjective "treasurial" normally means pertaining to a treasury, rather than the treasurer.-Government:...
of the Australian state of VictoriaVictoria (Australia)Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
Logo
Macquarie Group's logo is a representation of the 'Holey dollarHoley dollar
Holey dollar is the name given to coins used in the early history of two British settlements: Prince Edward Island and New South Wales. The middle was punched out of Spanish dollars, creating two parts: a small coin, known as a "dump" in Australia, and a "holey dollar".-Prince Edward Island :From...
', 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 scamFinancial crimes
Financial crimes are crime against property, involving the unlawful conversion of the ownership of property to one's own personal use and benefit...
. 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 while 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.
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.
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
- Australian real estate investment trust
- Better Place
- Macquarie Power & Infrastructure Income Fund
- Kemble Water Holdings Limited
- Macquarie AirportsMacquarie AirportsMAp Airports is an Australian owner and operator of airports. It was formerly Macquarie Airports, a combination of trusts managed by Macquarie Group but separately listed on the ASX. It was spun off in 2009.-Structure:...
- Southern Cross Media Group