Our businesses

Macquarie’s business activities are organized into principal operating groups that specialize in defined product or market sectors. Great emphasis is placed on the client’s relationship with Macquarie as a whole.

In the Americas, Macquarie's operating groups include:

• Macquarie Capital
• Fixed Income, Currencies and Commodities
• Banking and Financial Services
• Macquarie Securities Group
• Macquarie Funds Group

In addition, Macquarie has a network of support areas that provide the infrastructure and framework which enable the groups to operate. These include:

• Finance Division
• Information Technology Group
• Risk Management Group

Macquarie Capital

Macquarie Capital includes the Macquarie Group’s underwriting, corporate advisory, specialized funds management and specialized equipment financing globally. Macquarie Capital has more than 3,500 staff located in 25 countries across the globe including Australia, Austria, Canada, China, France, Germany, Hong Kong, India, Indonesia, Ireland, Japan, Malaysia, Netherlands, New Zealand, Philippines, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, UAE, UK and US.

Macquarie Capital contributed more than 63 percent of total earnings based on the full year results to March 31, 2008.

Our largest activity in North America is an integrated investment banking and private equity funds management business.

In North America, Macquarie Capital is organized into two areas:

1. Macquarie Capital Advisors – our deal origination, structuring and execution teams, who undertake traditional third party M&A/financing advisory activities for a broad range of US clients as well as undertaking the internal M&A/financing function for our principal investment activities, similar to the deal execution team in a private equity firm; and
2. Macquarie Capital Funds – our asset and investment management teams, similar to private equity fund managers.

Together with our investment advisory colleagues worldwide, we source, invest and manage approximately $49 billion of equity invested in over 100 infrastructure and related assets on behalf of retail and institutional investors. In fact, the Macquarie Capital funds’ portfolio managed by Macquarie now includes many significant and well-known community assets in 25 countries worldwide.

From their inception in 1996 to the end of our fiscal year 2008, our family of managed funds has delivered annualized returns to investors in excess of 16% p.a.* with our assets under management increasing by 28% to $A140 Billion. This track record of success has driven the continuous growth of our funds management business where our equity under management has more than tripled over the last few years. 

Macquarie is a recognized leader in global infrastructure acquisition, financing and management, and is one of the world’s largest non-Government owners and managers of infrastructure assets. These assets span a wide range of sectors and geographies, from toll roads in Australia to telephone directories in Finland, and include:

• International airports in major cities across the globe, such as Copenhagen, Brussels and Sydney
• Major toll roads in numerous countries, such as the 407 ETR in Canada, the APRR road network in France, and the Chicago Skyway and Indiana Toll Road in the United States
• Electric and gas utilities serving millions of residential and industrial consumers in communities, such as Melbourne, Australia, Wales, UK and Western Pennsylvania and Hawaii, US
• Broadcast towers delivering television and radio transmission across the UK, US and Australia
• Port investments around the world including Canada, Poland and China

In the United States, Macquarie Capital Advisors not only plays a key role in our principal investment activities as described above,  offers a diverse service offering to third party clients across a broad group of industries including Infrastructure and Utilities; Resources; Diversified Industries;  Property; and Telecommunications, Media, Entertainment & Technology (TMET).

Macquarie Capital Advisors also offers restructuring advisory and investment advisory services to corporations and creditors operating in stress, distress or bankruptcy. Through its special situations group Macquarie combines the experience and expertise of its professionals with Macquarie’s global platform to create one of the most versatile restructuring practices in the industry.

Fixed Income, Currencies and Commodities

Macquarie's Fixed Income, Currencies and Commodities is involved in a broad range of financial markets and trading activities. The Group's services range from foreign exchange to trading agricultural products, such as corn, to trading natural gas, electricity and ethanol.

In the Americas, Macquarie is active in a broad range of financial and physical commodity markets, supported by our worldwide team of professionals who have an in-depth knowledge across a range of commodity sectors. In addition to offering risk management and trading services for agricultural and energy commodities, T&C also has extensive experience in price-making and derivative trading in base and precious metals.

Banking and Financial Services 

The Banking and Financial Services is the primary relationship manager for Macquarie’s retail client base in Australia, New Zealand, Thailand and India. BFS also has businesses in North America and Europe and is focused on exploring other international investment and product distribution opportunities.

Macquarie Securities Group

Macquarie Securities encompasses Macquarie’s institutional stock broking, equity derivatives and equity
finance businesses. The Group utilizes its skills in research and risk management to develop equity-based financial solutions and services for clients, globally. Macquarie Securities aims to be a top tier, highly profitable, client-focused, global institutional securities company offering full service in Asia Pacific and selected services in the rest of the world. Macquarie Securities has over 1,900 staff employed in 18 offices around the world.

Macquarie Securities’ business activities are divided into four major divisions: Derivatives, Delta1, Institutional Sales, and Research. In addition to these core divisions Macquarie Securities has the middle and back office departments to support the business including: Accounting, Operations (trade support, collateral management, corporate actions), Risk Management (legal and compliance, tax operational risk) and Technology.

Macquarie Funds Group

The Macquarie Funds Group is Macquarie’s funds management arm. It is a full-service funds manager in Australia offering products across the full spectrum of investment styles, pricing structures, risk/return profiles and in all major asset classes.

Finance Division

The Finance Division plays a key role in supporting Macquarie’s businesses by providing financial control, financial planning and capital management, management reporting and budgeting, divisional accounting services and international business support. In the US, the Finance Division works closely with all of Macquarie’s operating groups including the regulated businesses in the broker-dealer, third party investor funds, NYSE-listed companies and new  business initiatives in the region.

Information Technology Group

The Information Technology Group manages Macquarie’s global technology infrastructure, the support and development of existing business systems, and the delivery and deployment of new systems, technologies and services. Each major Business Group in Macquarie has a dedicated team that works closely with them to understand its particular technology needs and to provide innovative and effective IT solutions.

Risk Management Group

Risk Management Group (RMG) is pivotal to Macquarie’s success. It encourages Macquarie’s businesses to be innovative and entrepreneurial within defined risk parameters. Our people have the unique opportunity to work across the breadth and diversity of the Macquarie Group. RMG is an independent, centralized unit responsible for assessing, quantifying and mitigating risks across Macquarie.

RMG’s principal responsibility is to take an independent view on all the material risk acceptance decisions the Macquarie Group makes. With its headquarters in Sydney and off-shore hubs in London, New York, Houston and Hong Kong, RMG supports the growth of all Macquarie’s businesses. RMG also approves Macquarie’s principal transactions, new businesses and new products. 

RMG consists of eight divisions:

Credit is responsible for analyzing and assessing credit exposures taken by Macquarie Group, to minimize the risk of loss arising from failure of counterparties to repay loans or honor contracts. Credit's responsibilities include assessing for approval the credit risks arising from new products, businesses, funds and complex trading structures. Credit is also responsible for undertaking reviews of counterparties and establishing appropriate limit frameworks. On principal transactions, Credit works with the deal teams to develop risk mitigation strategies. Read more.

Market Risk approval is required on all new deals and products prior to trading, whether it is an innovative exotic derivative structure, or the purchase of an entire trading business. It also reviews the market risk taken in the trading and banking books across the Group. Market Risk is responsible for setting trading limits and monitors exposures against those limits daily.  Read more.

Compliance oversees measures to ensure compliance with applicable regulations and laws in Australia and internationally as well as with obligations of fidelity and confidence to clients and counterparties. The key work streams within Compliance are oversight and monitoring of business compliance, regulator relationship management, regulatory reporting, conflicts management and policy development and maintenance.

Prudential Capital and Markets (PCM) is responsible for liaison with Australian Prudential Regulatory Authority and for ensuring compliance with its prudential standards. PCM sets the Group’s funding and liquidity policies and monitors compliance with them. Its responsibilities also encompass the Economic Capital Model and the Equity Risk Limit (ERL).
 
The objective of Operational Risk is to minimize the likelihood of survival threatening events to Macquarie. Operational Risk works with businesses to manage operational risk and proactively identify areas for control improvement. Through this, they get exposure to the various businesses and activities across Macquarie, both at a practical and strategic level.

Internal Audit (IAD) provides independent assurance to senior management and the Board Audit Compliance Committee (and through it to the Board) on the adequacy and effectiveness of Macquarie's financial and operational risk management frameworks. IAD has exposure to the diversity and breadth of Macquarie’s global businesses through a risk based program of reviews. 

The Data Policy Unit (DPU) ensures that uniform data standards are adopted by divisions so that accurate and reliable information is provided to the Group for credit monitoring and for regulatory and statistical reporting processes.

Quantitative Applications Division (QAD) is responsible for reviewing and approving all derivatives pricing models used within Macquarie’s trading systems. In addition, QAD works in partnership with individual business units to provide creative solutions to complex financial problems, and is consulted on a wide range of quantitative issues.