Principal Finance

Beyond Traditional Financing

As the principal financing and investing arm of Macquarie, we provide flexible primary financing solutions and engage in secondary market investing across the capital structure.

Experience and Expertise

With more than 110 dedicated professionals globally, our team members are highly qualified and have extensive experience dealing with unique and complex deal dynamics.

Track Record of Execution

We have executed over $US34billion of financing and investing commitments to over 510 clients globally since 2009.

Our capabilities

Macquarie Principal Finance provides financing and investment capital on a flexible and bespoke basis. We operate across:

Corporate and real estate (commercial, industrial and residential)
Geographies
All instruments/layers of the capital structure
Primary financing and secondary market instruments

Our capabilities are demonstrated through our track record of more than 580 investments and financings deploying $US34 billion since our inception in 2009.

Our experience and expertise derive from a dedicated team of more than 110 people, engaged around the world with extensive transaction, industry and regional skills and knowledge.

Corporate and real estate (commercial and residential)

All financial instruments/layers of the capital structure

Primary transactions/secondary market investments

Global coverage

Asia Pacific

With offices in both Sydney and Singapore, our global head office is located in Sydney. We employ over 20 investment professionals focusing on transactions across ANZ and Asia.

United States

With offices in New York, Chicago and San Francisco, the United States has the largest Principal Finance team globally, employing over 30 investment professionals.

Europe

Our European team is located in London with diverse experience across continental Europe and the British Isles employing over 20 investment professionals.

What we do

Corporate

Our corporate team is focused on a variety of industry groups and transaction structures with a typical investment size of between $US20 million and $US200 million.

We have transactional expertise in:

Services

Insurance Brokerage
Data centres
Catering
Facility management
Supply chain management
Diversified support services
Internet security
Payment processing
ATM network
Travel agencies
Logistics services
Aviation services

Telecommunications, Media, Entertainment and Technology

Telecommunications
Satellite services
Cable TV
Free-to-air TV
Radio
IoT and M2M communications
Home security systems
Software

Health and Education

Diagnostic imaging and pathology
Private hospitals
Special needs care
Cancer care
Medical products and devices
Healthcare management systems
Laboratory
Information systems
Education software
Publishing
Training/certification/licensing
Private schools
Tertiary education
Childcare
Student travel
Student loans

Infrastructure

Renewable energy
Ports and airports
Toll roads
Power stations
Wind farms
Utilities (water, gas, electricity)
Cell towers
Cable networks
Oil terminals

Industrials

Semiconductors
Waste management
O&G production processing
Marine engineering
Equipment hire
Security
Industrial containers
Warehousing
Heat treating
Testing, inspection and certification

Consumer Products

Food retailing
Petrol station and quick service restaurants
Home and garden
Consumer electronics
Retail mortgage portfolios

Real estate

Our real estate team has invested more than $US6.9 billion in real estate related transactions since 2010 with a typical investment size of between $US20 million and $US200 million.

We have transactional expertise in:

Commercial real estate

Office space
Industrial
Retail
Hospitality

Residential

Multifamily apartments
Holiday rentals
Defence housing estates
Student accommodation

Alternative

Data centres
Aged care and retirement homes
Disability care
Healthcare

Our strengths

Track record of execution

We have executed over $US34 billion of new financing and secondary investing commitments across more than 510 clients globally since 2009.

Financial strength

Our clients benefit from the strength of Macquarie’s balance sheet, our continuous profit record and our global presence.

Client Focus

We provide customised capital solutions and financing certainty for our clients across all industry sectors.

Transaction certainty

Capital commitments are made solely within the firm and are not reliant on syndication markets or other third parties.

Case studies

Dye & Durham

We utilised our industry and asset class expertise to put in a market-leading financing solution, and complete and fund the transaction within 40 days.

The brief

Based in Canada, Dye & Durham is a leading provider of cloud-based software and technology solutions designed to boost efficiency and productivity for legal and business professionals. Its core products include legal search platforms and conveyancing workflow software.

The challenge

The Company was looking to refinance its existing capital structure shortly after closing on two acquisitions, and were looking to find a capital partner with the ability to transact within a quick timeframe and fund future growth.

The outcome

Macquarie and a partner provided a $C200m facility. The financing solution met the client’s requirement for a capital return without shareholder dilution and the transaction was completed and funded within 40 days.

The Macquarie difference

We were able to utilise our industry expertise and flexible balance sheet to provide a new revolving credit and unitranche facility for the Company and execute on an expedited timeline.

Dye & Durham

We utilised our industry and asset class expertise to put in a market-leading financing solution, and complete and fund the transaction within 40 days.

The brief

The challenge

The outcome

The Macquarie difference

We were able to utilise our industry expertise and flexible balance sheet to provide a new revolving credit and unitranche facility for the Company and execute on an expedited timeline.

Premier Technical Services Group

The acquisition of PTSG continues our track record of investing in high quality, resilient businesses with substantial recurring revenue characteristics.

The brief

Premier Technical Services Group (PTSG) is headquartered in West Yorkshire and provides tech-enabled specialist testing and compliance services to over 20,000 customers across the UK. The business was founded in 2007 with the objective of becoming the UK’s leading provider in this industry through a combination of acquisitions and organic growth.

The challenge

PTSG’s directors realised that achieving their ambitions to take the business to the next level would require significant BUT targeted capital investment. Ideally, they were looking for a suitable investment partner who could provide both capital and proven expertise in growing businesses to enable PTSG to benefit from growing opportunities in health and safety testing.

The outcome

PTSG delisted from the London Stock Exchange on 1 August 2019 at an enterprise value of over £300 million and now benefits from Macquarie's flexible balance sheet funding, supporting the company to continue with its acquisitive growth strategy - driven by Chief Executive Paul Teasdale and Managing Director Roger Teasdale who continue to lead the business.

The Macquarie difference

Macquarie’s Principal Finance team identified PTSG’s potential for strong growth supported by highly recurring testing and maintenance revenues. Macquarie made a cash offer to acquire the company and support future growth through direct access to the capital and expertise brought by the Macquarie platform. The Board of Directors of PTSG unanimously decided to recommend Macquarie’s cash offer in June 2019, with shareholders voting in favour of the proposed takeover in late July.

Residential Solar

This transaction demonstrates Macquarie’s continued capacity to develop, build and operate renewable assets in the UK. We are pleased to have created this platform, adding institutional scale and helping to develop the UK’s rooftop solar PV market.

The challenge

The UK aimed to develop and build institutional scale into its domestic rooftop solar PV market across social housing. The challenge was the project delivery and subsequent maintenance of thousands of individual systems which would provide free renewable energy to social housing tenants while generating a return on capital from the UK Feed-in Tariff.

The Macquarie difference

Macquarie played a pivotal role in the origination, supply chain and asset management, was able to combine the provision of capital with technical expertise in order to scale up delivery of domestic rooftop solar PV.

The outcome

The Principal Finance team funded the UK’s largest social housing rooftop solar PV rollout, participating in development through to operation with over 13,000 systems installed. In 2017, the systems generated 33GWh of residential power, helping decrease carbon emissions and reduce energy bills for social housing residents by approximately £3 million.

Anglian Water

Our partnership with Anglian demonstrates our longstanding focus on renewables and commitment to solar PV in the UK, helping to reduce carbon emissions and deliver cost savings for large commercial and industrial customers.

The brief

Anglian Water is one of the UK’s leading water services companies and is also one of the largest power consumers in East Anglia. It has set itself ambitious sustainability targets, including a commitment to becoming carbon neutral by 2050, and onsite solar will contribute to meeting these goals.

The challenge

With its ambitious sustainability targets, Anglian Water required a dedicated partner to help it reduce carbon and protect its business against rising energy costs on behalf of its customers. The company also required the provider to deliver a tailored solution which would have no disruption to its site operations during installation or operation. For example, many sites operate with back-up generators creating additional engineering challenges.

The outcome

In July 2018, Macquarie Principal Finance completed the first installation for Anglian Water’s 30MWp onsite power purchase agreement (PPA) solar PV rollout. Macquarie is funding the installation of the solar systems and will own, maintain and operate them with HBS New Energies once completed. Anglian Water’s solar PV programme comprises sites ranging between 200kWp and 12MWp in size and is expected to total approximately 30MWp of installed capacity.

The Macquarie difference

Our longstanding focus on renewables means we are uniquely positioned to fund the installation and maintenance of solar PV systems for our clients. We have been active in the UK solar PPA market since 2013, and have a dedicated team developing projects with our installation partners throughout the UK. This transaction demonstrates our commitment to reducing carbon in the energy sector as well as delivering cost savings for large commercial and industrial customers.

Read more about our solar product offering here

NEC

Macquarie structured and led the financing to support LDC’s acquisition of the NEC Group, delivering a facility tailored to the Company’s needs.

The brief

Macquarie was approached by LDC to facilitate a debt financing for its £307 million acquisition of the NEC Group from Birmingham City Council. The NEC Group is comprised of the UK’s leading live exhibition, arena and conference venues, hosting more than 700 events attracting 4 million visitors a year to many of the UK’s largest exhibitions as well as significant political and trade conferences, some of the biggest music and comedy acts and various top class sporting events.

The challenge

LDC required a financing provider who could work flexibly alongside them to provide the Company with a bespoke financing structure reflecting the individual needs of its unique business today while supporting its future growth and development. The provider needed to offer certainty, so saving LDC from having to deal with a broad syndicate of lenders, within the process timeline.

The outcome

In January 2015, Macquarie acting as Lead Arranger of the debt financing, originated and structured the financing as a bespoke unitranche loan with a 6½ year maturity. Macquarie also sourced suitable co-lenders with similar outlooks on the NEC Group as a landmark asset in the UK. Macquarie intends to retain a significant holding until maturity.

The Macquarie difference

Martin Draper, Chief Executive Officer at LDC commented, “Macquarie has played a key role in coordinating as lead participant of our financing arrangements and has been instrumental in completing this deal. They worked alongside us in a very flexible way, taking the time to understand the business, develop a bespoke financing structure and source appropriate co-lenders. We are looking forward to working with them going forward.”

Pocahontas Parkway

We utilized our industry expertise to put in a market leading bid, win the auction, negotiate a complete exit for the sellers, and facilitate the turnover with governmental authorities.

The brief

Pocahontas Parkway is a 9 mile toll road in Richmond, VA. The company went through a financial restructuring that resulted in its lenders assuming ownership of the road. Prior to and through the transfer, the company’s performance suffered.

The challenge

Due to the complex nature of the company’s history and structure, there were a range of issue to deal with relating to access to information, ownership and governance rights, among others.

The outcome

Over the next year, Macquarie implemented operational improvements to the road, and launched a sale process that resulted in Pocahontas being transferred to a natural permanent owner of the road. Our leadership helped the company improve its operations, led to a material return for our investment partners over the 15 month investment term, and facilitated the eventual transfer of the asset to a long-term custodian.

The Macquarie difference

We utilized our industry expertise to put in a market leading bid, win the auction, negotiate a complete exit for the sellers, and facilitate the turnover with governmental authorities. We completed the transaction by bringing in two partners and executing the transaction on an expedited timeline.

World Insurance Associates LLC

Our flexible financing solution allowed us to partner with World Insurance to help fund its acquisition strategy and drive growth for the company.

The brief

World Insurance is an insurance brokerage offering a comprehensive range of insurance products to commercial and personal clients. The company was seeking a substantial capital commitment to continue its acquisition growth strategy to further increase scale and realize synergies.

The challenge

A small business was looking for a capital provider who could provide a substantial capital commitment to help fund their acquisitions while maintaining majority ownership of the company.

The outcome

Within two years, Macquarie consummated 15 acquisitions and had deployed more than $US30 million of the term loan facility to help facilitate the acquisition strategy of World Insurance.

The Macquarie difference

Our industry expertise, having invested in the insurance brokerage industry previously, allowed us to collaborate with World Insurance to create a differentiated term loan facility. The facility funds up to $US75 million with equity warrants to align key incentives with the company and help the management team achieve its growth and ownership objectives.

Energetics

Macquarie was a supportive growth partner, investing substantial capital and expertise to enable Energetics to fulfil its potential of becoming a national competitor.

The brief

Energetics generates recurring revenues by working with housebuilders and construction firms to design, build, own and operate ‘last mile’ gas and electricity connections to new residential and commercial developments. Under Macquarie’s ownership the business achieved an ambitious growth strategy to become one of the UK’s largest independent network owners.

The challenge

In 2013 Macquarie provided debt and equity to recapitalise the business and finance the exit of legacy shareholders. We provided substantial follow-on investment to fund growth capital expenditure, becoming the controlling shareholder in 2015. As majority owner, Macquarie further strengthened management capabilities, building a solid platform for Energetics’ accelerated growth outside of its historical base in Scotland.

The outcome

In October 2018, Macquarie completed the divestment of its majority stake in Energetics.

Over Macquarie’s holding period the business grew recurring EBITDA at a 30% CAGR and increased its workforce by 75 per cent as it expanded into the Midlands and in the South of the UK. Macquarie committed over £145 million of capital to Energetics which was used to build vital infrastructure which connects 90,000 new homes to upstream electricity and gas distribution networks.

The Macquarie difference

Mike Pearce, Chief Executive Officer of Energetics: “Having an investor with the financial backing and pedigree of Macquarie gave us instant credibility and allowed us to build our business into a scalable platform which has positioned us well for continued growth.”

Welcome to Macquarie

Important note

Principal Finance

Principal Finance

Beyond Traditional Financing

As the principal financing and investing arm of Macquarie, we provide flexible primary financing solutions and engage in secondary market investing across the capital structure.

Experience and Expertise

With more than 110 dedicated professionals globally, our team members are highly qualified and have extensive experience dealing with unique and complex deal dynamics.

Track Record of Execution

We have executed over $US34billion of financing and investing commitments to over 510 clients globally since 2009.

Our capabilities

Global coverage

Asia Pacific

United States

Europe

What we do

Services

Telecommunications, Media, Entertainment and Technology

Health and Education

Infrastructure

Industrials

Consumer Products

Commercial real estate

Residential

Alternative

Our strengths

Case studies

Recent transactions

Recent transactions

Recent transactions

Recent transactions

Recent transactions

Recent transactions

Welcome to Macquarie

Important note

Principal Finance

Principal Finance

Beyond Traditional Financing

As the principal financing and investing arm of Macquarie, we provide flexible primary financing solutions and engage in secondary market investing across the capital structure.

Experience and Expertise

With more than 110 dedicated professionals globally, our team members are highly qualified and have extensive experience dealing with unique and complex deal dynamics.

Track Record of Execution

We have executed over $US34billion of financing and investing commitments to over 510 clients globally since 2009.

Our capabilities

Global coverage

Asia Pacific

United States

Europe

What we do

Services

Telecommunications, Media, Entertainment and Technology

Health and Education

Infrastructure

Industrials

Consumer Products

Commercial real estate

Residential

Alternative

Our strengths

Case studies

Recent transactions

Recent transactions

Recent transactions

Recent transactions

Recent transactions

Recent transactions

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