Magellan Financial Group (MFG) investor relations material

Merger overview and rationale

• MFG proposes to acquire the remaining issued capital of Barrenjoey, increasing its ownership to 100% and consolidating control over a diversified financial services platform.

• The merger aims to combine deep expertise in public, private, and alternative markets with global distribution, enhancing growth opportunities and client offerings.

• The combined group will have a broader platform, significant balance sheet strength, and a focus on talent retention and client outcomes.

• The MFG Board unanimously recommends shareholders vote in favor of issuing shares to fund the merger.

Financial highlights and valuation

• The merger values Barrenjoey at $1,616 million on a 100% basis, with the valuation primarily assessed using discounted cash flow and peer analysis.

• MFG acquired an additional ~10% economic interest in Barrenjoey from Barclays for $148.9 million, funded by a placement and share purchase plan.

• Barrenjoey's last twelve months (LTM) NPATA was $108 million, and the implied transaction multiple is at a discount to domestic and international peers.

• MFG's LTM PBT contribution was $178 million, and Barrenjoey's LTM PBT was $139 million.

Revenue and business diversification

• The combined group will have $45 billion in assets across listed equities, private credit, private equity, and real assets.

• Revenue streams are diversified across investment management, markets, advisory, and capital markets, with leading positions in equity sales, research, and M&A.

• LTM revenues include $313 million from investment management, $233 million from markets, and $259 million from advisory and capital markets.