Macquarie Group (MQG) – Sale of US, Europe public markets business

Macquarie Group provides diversified financial services in Australia, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Macquarie Asset Management (MAM), Banking and Financial Services (BFS), Commodities and Global Markets (CGM), and Macquarie Capital. Macquarie Group is headquartered in Sydney.

‍

Macquarie Group (MQG) has announced the sale of its Public Investments business in North America and Europe to Japanese investment group Nomura for approximately $2.8 billion. The transaction includes around $285 billion in assets under management (AUM)across equities, fixed income, and multi-assets. The public investments business in Australia and the global private markets arm, which include alternatives, infrastructure, and green assets, are unaffected by this deal.

‍

Upon completion of the transaction, Macquarie is expected to have approximately $4billion in excess capital by year-end, factoring in its remaining share buy-back and retained earnings. During its Europe, Middle East, and Africa (EMEA) Investor Tour in March, Macquarie announced the introduction of return on tangible equity (ROTE) as a supplementary measure to return on equity (ROE), reflecting its evolving business model.

‍

Macquarie continues to leverage global mega-trends such as urbanisation, digitisation, and energy transition. The firm anticipates solid medium-term growth, but robust market conditions are essential for the business to realise its potential. In the near-term, Macquarie remains a high-beta stock.