02 July 2010
Macquarie Group (Macquarie) today announced changes to some of its operating groups and the appointment of three new members to its Executive Committee.
These changes and appointments underscore the increasingly global nature of Macquarie's businesses.
Macquarie Capital Funds to merge with Macquarie Funds Group
Macquarie Capital Funds will merge with Macquarie Funds Group (MFG) to create Australia’s largest global asset manager with total assets under management of $A306bn ($US280bn). Shemara Wikramanayake will be the Global Head of the merged group and continue as a member of Macquarie's Executive Committee.
Ms Wikramanayake joined Macquarie 22 years ago and has held a number of leadership positions including Head of Macquarie Capital Funds for North America where she spearheaded the establishment and management of Macquarie's infrastructure funds in the Americas.
Ms Wikramanayake was appointed Head of MFG in 2008 after overseeing the integration of three Macquarie funds and funds-based structured product businesses to form the group. At the time, MFG held $A70bn in assets under management. MFG's business was significantly bolstered by the successful acquisition of US-based Delaware Investments which was completed in January 2010.
The merger announced today will place MFG in the top 50 asset managers globally, with approximately 1,800 staff working in 19 countries.
Macquarie Capital Funds which specialises in global infrastructure and real estate funds, will be renamed Macquarie Funds Direct (MFD) and become a division of MFG. John Roberts, Global Head of Macquarie Capital Funds, will become Executive Chairman of the expanded MFG. Reflecting the global reach of the MFD business, Martin Stanley, European Head of Macquarie Capital Funds, will become Head of MFD and remain based in London.
Commenting on the merger, Ms Wikramanayake said: “Both Macquarie Funds Group and Macquarie Capital Funds have delivered superior returns to clients over a sustained period. The two businesses have highly complementary product offerings which combined, will create a full suite of investment products offered through a single global distribution platform.
Funds currently managed by MFG have achieved first quartile performance over the past three years in areas such as Listed Equities (Australian Shares Index and Long Only) and Global and Enhanced Property Securities. Following the acquisition of Delaware Investments, MFG strengthened its position as a leading manager of fixed income securities with approximately $A150bn of fixed income assets under management. In Australia, MFG was recently voted Fixed Income Manager of the Year by Money Management and in the US, Delaware Investments earned nine 2010 Lipper Awards for funds which delivered superior historical risk-adjusted performance.
“Macquarie Capital Funds, both listed and unlisted, has also had a long-term track record of out-performance. With $A96bn of assets under management, it is the largest infrastructure fund manager in the world with over 400 major global institutional investors,” Ms Wikramanayake said.
Mr Roberts noted that: “Following the parallel global growth of both businesses, one distinct and co-ordinated funds management group will provide a simpler and more effective platform from which to better service our clients.”
Macquarie Securities and Macquarie Capital
Roy Laidlaw will become Group Head of both Macquarie Capital and Macquarie Securities. Michael Carapiet, currently Head of Macquarie Capital, will become Executive Chairman of both groups and remain on the Executive Committee.
The two businesses have approximately 3,000 staff operating in all major financial markets.
Mr Laidlaw joined Macquarie in 2003 and has more than 20 years experience in corporate finance, equity capital markets and institutional equities. Mr Laidlaw has led the growth of Macquarie’s securities business, transforming it from a local broker into a global franchise and the world’s eighth-largest equities research house.
Mr Laidlaw said: "Macquarie Capital and Macquarie Securities work very closely together, particularly in equity capital markets (ECM). These changes allow the two businesses to provide greater support to our corporate and institutional clients, particularly in newer markets such as Canada, the US and Europe where we have been actively building our presence.
"The success of our ECM offering has been demonstrated by our ability to secure a range of mandates, which positions us as one of the top two managers of Hong Kong IPOs since 2008, highlighted by our role on the Agricultural Bank of China IPO. We also recently acted for Lloyds Bank on its £13.5bn rights issue and Rio Tinto on its $US15.2bn renounceable rights issue."
Mr Carapiet said: "ECM activity in FY10 was for both groups a major source of fee and commission income underscoring the strategic logic of bringing the two businesses closer together."
New Executive Committee appointments
Macquarie is pleased to announce three new members of its Executive Committee. They are Tim Bishop, Stevan Vrcelj and Garry Farrell.
Tim Bishop joined Macquarie in 1999 as part of the Bankers Trust Australia acquisition and has nearly 20 years of investment banking experience. Mr Bishop is currently Macquarie's US Country Head as well as CEO of Macquarie Capital (USA) Inc. and will remain in the US. His appointment to Executive Committee is in recognition of the growing importance of the US to Macquarie and the importance of delivering the whole firm to US clients.
Stevan Vrcelj is Head of Global Cash Equities for Macquarie Securities. He joined Macquarie in 2006 and has extensive experience in Asian financial markets gained from positions in Tokyo and Hong Kong.
Garry Farrell joined Macquarie in 1986 working extensively in origination, structuring and executing transactions for global clients. He is Head of Corporate and Asset Finance (CAF), which has assets on balance sheet (or under management) of $A13.8bn, with overall responsibility for providing finance and asset management solutions to retail, corporate and government clients in 36 countries. Macquarie also announced today that it would consolidate all real estate lending activities within CAF.
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