Macquarie Group (MQG) Investor Tour 2025 Day 2 summary

Strategic direction and growth outlook

• Expanding EMEA presence with a focus on sector expertise in digital infrastructure, financial services, education, and technology, especially through new offices and senior hires in Continental Europe.

• Growth strategy combines advisory, capital markets, and principal investing, leveraging both advisory and principal investor perspectives, and emphasizes collaboration across regions.

• Cross-border activity is increasing, with fees from such deals rising from 12% to over 20% in two years, and a focus on cross-border M&A and infrastructure.

• EMEA now contributes ~28% of fee revenue, with 37% of EMEA revenue from Continental Europe in FY24, up from 29% in FY21.

• Strategy remains consistent since 2022, focusing on differentiation, disciplined balance sheet deployment, and a client-centric approach.

Financial performance and portfolio composition

• Principal finance/principal portfolio exceeds $A32.7b globally, with $A26.5b in private credit and $A6.2b in equity investments; EMEA private credit portfolio is over $A10.3b with more than 250 deals since 2009.

• Private credit loss rate is less than 0.1% per annum, reflecting disciplined credit selection and risk management.

• Annuity-style income now represents 59% of income, with income mix targeting roughly a third each from advisory, principal equity, and private credit.

• Aggregate lifetime equity IRR is ~23% across realized deals, with equity investments diversified across infrastructure, private equity, and venture capital.

• Realizations from recent investment phases are expected to increase from fiscal 2027 as portfolios season.

Business model and differentiation

• Combines fee-based advisory, spread-related private credit, and equity investing, creating a diverse and resilient income stream.

• Flexible balance sheet enables tailored solutions and co-investment with clients, supporting both growth and risk management.

• Focus on niche sectors and local market coverage, with strong client relationships and repeat business, especially in France and Germany.

• Venture capital approach is differentiated by balance sheet investing, founder alignment, and sector specialization in governance, risk, compliance, and enterprise AI.

• Collaboration and innovation are emphasized to drive entrepreneurial growth and cross-border synergies.