Macquarie Group

Infobox_Company
company_name = Macquarie Group Limited
company_type = Public (ASX|MQG)
company_slogan = "Forward thinking"
foundation = Sydney, Australia (1970)
location = flagicon|AUS Sydney, Australia
key_people = David S. Clarke, Chairman
Nicholas W. Moore, CEO
num_employees = 12400 (2008)
industry = Diversified Financials
products = Financial Services
assets = AUD 200 billion (2007)
revenue = AUD 7.2 billion (2007)
net_income = AUD 1.46 billion (2007)
homepage = [http://www.macquarie.com.au/ www.macquarie.com.au]

Macquarie Group Limited (formerly Macquarie Bank Limited) is a global investment banking and diversified financial services group, providing banking, financial, advisory and investment services to investors, corporations and governments. It is the preeminent Australian investment bank and has its global headquarters located in Sydney. It is listed on the Australian Securities Exchange (ASX) and is a constituent of the S&P/ASX 20.

In 2007, Macquarie realised a profit of $A1.46 billion and managed assets worth $A228 billion. It is the largest player in raising capital in Australia. It is also one of the largest players in the mergers and acquisitions area of corporate finance in Australia.

In November 2007, Macquarie Group Limited was listed [cite web |title=Admission to Official List |publisher=Australian Securities Exchange |url=http://asx.com.au/asxpdf/20071102/pdf/315mblcv97j0bl.pdf |format=PDF |accessdate=2007-11-02 ] on the Australian Securities Exchange.

Why?

The reason behind the reorganisation of Macquarie Bank that resulted in the creation of Macquarie Group Limited was as follows: banks are subject to additional regulations which do not apply to non-bank financial firms, particularly in respect to capital and risk management. Previously, Macquarie's corporate structure that the holding company was a bank, and thus banking regulation applied to all of its subsidiaries to some extent, although Macquarie had negotiated with APRA certain special exemptions. In order to remove the costs of these additional regulations, and to remove the need for the regulator to treat Macquarie specially with respect to those regulations, the group was restructured so that the holding company was a non-bank, and the bank became a subsidiary. Thus, on the whole, banking regulations would only apply to the banking subsidiary and its subsidiaries, and not the non-bank subsidiaries or the holding company.

History

The bank was founded in 1969 and it began its operation from Sydney in January of 1970 as Hill Samuel Australia, a subsidiary of the UK's Hill Samuel, an entity founded by the same man as the Shell Corporation. The bank took its name from Lachlan Macquarie, an early Governor of New South Wales who dramatically transformed the early colonial economy. The company became a trading bank and changed to its present name in 1986, at which time it opened branches in Melbourne and Brisbane. The company listed on the ASX in 1996, with an initial market capitalisation of 1.3 billion AUD.

Macquarie Bank manages a number of listed investment funds. Over the past decade, the Macquarie Infrastructure Group, has become the world's largest operator of private toll roads both nationally and internationally. Other funds managed by the bank's subsidiaries have invested in projects such as airports, operating Sydney Airport and Bristol International Airport in the UK, for instance.

Global Reach

Macquarie employs around 13,000 staff in more than 60 office locations across 25 countries. Macquarie's operations are now global with staff located in the following countries: Australia, Austria, Brazil, Canada, China, Germany, France, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Netherlands, New Zealand, Philippines, Russia, Singapore, South Africa, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom and United States.

Notable recent acquisitions include Cook Inlet, now Macquarie Cook Energy, a gas trading and scheduling operation based in Los Angeles and Thames Water, one of the world's largest water companies.

Macquarie Bank has developed a large presence in the Financial Services arena with their Financial Services Group's Wealth Investments Team managing over 479.8 Billion AUD of Funds Under Management.

Business Structure

Macquarie's business activities are organised into six principal operating groups: Macquarie Capital (formerly Investment Banking Group), Macquarie Securities (MacSec), Treasury and Commodities Group, Macquarie Funds Group (MFG), Banking and Financial Services Group and Real Estate Group. [cite web |title=Macquarie’s six major business Groups |publisher=Macquarie Group |url=http://www.macquarie.com.au/au/about_macquarie/company_profile/mgmt_organisation/six_groups.htm] 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 is Nicholas Moore, who replaced Allan Moss in May 2008, and the board chairman is David Clarke.

The bank's high margins and profits, and the consequent rewards for its executives and shareholders, have seen news website Crikey dub the bank "The Millionaire Factory". Macquarie's capitalisation as at June 2007 was $23.5 billion AUD making it one of Australia's biggest companies by value.

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, leading many to see the bank as overly aggressive in trying to achieve ultimate profits.

In November 2007, the bank restructured as a wholly owned subsidiary of Macquarie Group Limited.

In February 2008, it was announced that current CEO and Managing Director Allan Moss would be retiring in May 2008 and replaced by Macquarie Capital (previously known as the Investment Banking Group) head, Nicholas Moore.

Current Board Members

*David S. Clarke, AO, Executive Chairman
*Mark R.G. Johnson, Deputy Chairman and Chairman of Australian Gas Light Company
*Nicholas Moore
*John Allpass, Former Managing Partner of KPMG's Queensland practice
*Laurence Cox, AO, Former Chairman of the Australian Stock Exchange
*Peter Kirby, Former Managing Director of CSR Limited
*Catherine Livingtone, Former Managing Director of Cochlear Limited
*Kevin McCann, Former Partner and Chairman of Allens Arthur Robinson
*John Niland, AC, Former President of the University of New South Wales, and former Cornell University professor
*Helen Nugent, AO, Chairman of Funds SA, Swiss Re Life, and Health (Australia) Limited

Notable current and former employees

Business

*Simon Hannes - financial analyst, convicted of insider trading
*Nicholas Moore - CEO

Public service

An unusual feature of Macquarie Bank, as a financial institution, is the very strong political connections that it maintains through the appointment of former politicians and senior political staffers to senior and highly paid positions.

*Bob Carr - Premier of New South Wales (1995-2005)
*Ross Cameron - Member of the Australian House of Representatives (1996-2004)
*John Hewson - Member of the Australian House of Representatives (1987-95) and Leader of the Australian federal Opposition (1990-1994)
*Max Moore-Wilton - former Secretary of the Department of the Prime Minister and Cabinet to John Howard
*Irene Moss - Commissioner of the New South Wales Independent Commission Against Corruption until November 2004; wife of Macquarie Bank CEO Allan Moss.
*Graeme Samuel - chairman of the Australian Competition and Consumer Commission (2003-present)
*Warwick Smith - former Federal Cabinet Minister
*Alan Stockdale - former Treasurer of Victoria

Logo

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. 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.

External links

* [http://www.smh.com.au/news/business/macbank-gets-nod-for-restructure/2007/09/28/1190486533175.html Macquarie Bank restructure approved]
* [http://www.macquarie.com.au/au/about_macquarie/company_profile.htm Company Profile]
* [http://www.macquarie.com.au/au/corporations/sfpc/infrastructure_funds/overview.htm Macquarie's Infrastructure Vehicles]

References