Macquarie in the Americas Tim Bishop Country Head - US

Transcription

1 Macquarie in the Americas Tim Bishop Country Head - US Macquarie Group Limited Operational Briefing 8 February 2011 Presentation to Investors and Analysts

2 The changing face of Macquarie in the Americas Expanding regional reach Metric 30 Sep Sep office locations across the US, Canada and Latin America Total headcount 1,991 3,732 % of global income contribution 1 8% 27% % of global headcount 14% 24% Offices across Americas Income contribution based on 6 months to 30 Sep. 2

3 Diversified group-wide capabilities Income 1 by Source - 6 months to 30 Sep 10 The American businesses contributed 27% of Macquarie s total income in 1H11 Macquarie Group worldwide Americas 28% 18% 5% Institutional and retail cash equities Equity derivatives Funds management M&A and advisory income 24% 13% 9% 20% Asset and equity investments Commodities, resources and foreign exchange 14% 34% 11% 9% Lending, leasing, fixed income and margin related income 15% 1. Operating income before writedowns, impairments, equity accounted gains/(losses) and one-off items. 3

4 Positioning for success in the Americas A hybrid approach Bulge Bracket Banks League table focus Predominantly focused on large cap corporates and financial sponsors Full product suite Macquarie opportunity Boutique / Independent Firms Narrow product suite Restricted access to capital Limited international coverage Limited scale Leveraging Macquarie s core strengths Leading Asia-Pacific presence Strong sector focus, deep relationships Global platform strength and scale Strong balance sheet Entrepreneurial approach, capital partnering 4

5 Bringing specialist expertise and a differentiated approach to target markets Institutional and Retail Cash Equities Equities underwriting and distribution capabilities Strong mid-market coverage, but not at expense of large cap Comprehensive institutional distribution platform Canadian retail distribution platform Debt Capital Markets and Fixed Income Senior secured and unsecured debt underwriting and distribution capabilities Full service fixed income sales and trading with focus on non-investment grade and distressed credit and Commercial Mortgage-Backed Securities Corporate Advisory Combining focused client coverage with flexibility to respond to opportunities Leveraging experience in six key sectors Target Markets Leasing and Lending Primary loan origination leveraging our hold capabilities Customised bilateral/club lending and full service asset finance Commercial mortgage financing Commodities Deep sector expertise in energy, metals & mining and agriculture Significant and growing physical presence Ability to deploy balance sheet across the capital structure Agricultural OTC products in North and Latin America Funds Management Global specialised asset management expertise, consistent with Macquarie s core strengths Deep institutional relationships 5

6 Growing in the Americas Funds management Pre Funds management presence established in New York, Los Angeles and Toronto Infrastructure funds business launched in Canada followed by the US Hedge fund incubation commenced through establishment of JV with MDSass 1 Canadian listed closed end funds launched First peso-denominated Mexican infrastructure fund launched Substantially broadened US based capability with acquisition of Delaware Investments AUM of $A159b (30 Sep 10), up 248% on pcp 2 1. MDSass is a New York-based investment management firm. 2. Within the Americas. 6

7 Growing in the Americas Institutional and retail cash equities 1 Pre Asian equities sales to US institutions Head of US Equities appointed Canadian equities and ECM platform established (Orion Securities) US ECM team established US PCM team established Specialist energy equities capabilities acquired (Tristone Capital) Specialist FIG equities capabilities acquired (FPK) Canadian retail distribution added (Blackmont Capital) Global Head of Derivatives appointed (New York) Institutional and retail cash equities 1H11 income up 90% on pcp 2 1. Including 50% of Americas ECM revenue. 2. Within the Americas. 7

8 Growing in the Americas Lending, leasing and fixed income 1 Pre Macquarie Air Finance established Leasing and asset financing for rail and manufacturing assets Emerging markets distribution Customised commodity lending Acquisition of leading independent technology leasing business High yield and distressed credit trading capability established High yield and distressed credit sales and research capability established Sizeable expansion of corporate lending capability US DCM team established Canadian DCM team established Lending, leasing and fixed income 1H11 income up 24% on pcp 2 Expansion of vendor and channel finance capability Significant aircraft portfolio purchased from AIG s ILFC Real estate lending and CMBS capabilities established 1. Including 50% of Americas DCM revenue. 2. Within the Americas. 8

9 Growing in the Americas M&A and advisory Pre Generalist capabilities, concentrated in infrastructure, with a principal and fund advisory focus Specialist restructuring capability acquired (Giuliani Capital Advisors) Specialist Canadian resources capability acquired (Orion Securities) Hiring of senior client facing Corporate Finance executives commences Vice Chairman/Head of Corporate Finance hired Specialist energy/a&d capability acquired (Tristone Capital) Specialist financial institutions capability acquired (FPK) Head of Industrials hired Specialist Real Estate PCM acquired (Presidio Partners) Chairman, Oil & Gas hired M&A and advisory 1H11 income up 89% on pcp 1 1. Within the Americas. 9

10 Growing in the Americas Commodities, resources and foreign exchange Pre Agricultural derivatives and structured finance; energy markets and derivatives Commodity investor products business; emerging markets distribution and origination platform Acquisition of Cook Inlet (natural gas); establishment of ethanol trading Customised commodity lending Physical power business Physical and financial coal transactions Acquisition of Constellation gas trading operation and Integrys Energy Services wholesale electric marketing and trading portfolio Pulp and paper trading Macquarie/Freeport LNG export project Physical oil and NGLs trading Commodities, resources and foreign exchange 1H11 income up 55% on pcp 1 Latin American physical oil markets 1. Within the Americas. 10

11 Deep and comprehensive industry expertise, aligned group-wide Sector Real Estate Infrastructure, Utilities & Renewables Industrials Financial Institutions TMET Resources (Energy & Mining) No. of publishing analysts No. of ECM deals No. of DCM deals % of lending commitments 2,3 2% 8% 35% 7% 14% 33% 4 CY10 attributable deal value ($Am) 317 8,268 3,800 4,200 1,927 7,680 Group wide acquisitions Presidio FPK Orion, Tristone, Constellation Delaware, Blackmont All data current as at 31 Jan 11 unless otherwise noted. 1.CY As at 31 Dec Includes supply financing, pre-pay deals and commodity repurchase transactions. 4. Includes energy financing portfolio and structured commodity financing portfolio as it relates to energy. 11

12 Selected transactions by sector Corporate Advisory CY10 Infrastructure, Utilities & Renewables Real Estate Industrials Financial Institutions TMET Resources (Energy & Mining) Denver Fastracks Eagle P3 Commuter-rail Project $US2.1 billion Financial Advisor Sponsor and Equity Underwriter General Growth Properties Follow-on Offering $US2.3 billion Senior Co-Manager Centerplate Senior Secured Credit Facility $US309 million Joint Lead Arranger Joint Bookrunner Syndication Agent Cooper Gay Merger with Swett & Crawford Undisclosed Lead Financial Advisor Teranet Inc. Acquisition of Renewed Licenses $C1 billion Exclusive Financial Advisor InterOil Common Stock/ Convertible Debt $US210 million/ $US70 million Joint Bookrunner Joint Lead Manager SouthWest Water Co. JPMorgan-led Consortium Acquisition $US443 million General Growth Properties Revolving Credit Facility $US300 million GENCO Acquisition of ATC $US513 million First Commonwealth Follow-on Offering $US86 million Midwest Gaming Senior Secured Facility $US120 million Puda Coal Follow-on Offering $US108 million Exclusive Financial Advisor Joint Bookrunner Lead Financial Advisor Joint Bookrunner Joint Lead Arranger Joint Lead Manager Joint Bookrunner Granite State Electric & Energy North Natural Gas Acquisition by Algonquin Power & Utilities $US285 million Exclusive Financial Advisor DuPont Fabros Technology Follow-on Equity Offering $US317 million Joint Bookrunner Bucyrus International Senior Debt Facility $US0.4 billion Joint Bookrunner TD Bank Follow-on Offering $US239 million Co-Manager Airvana Senior Secured Credit Facility $US360 million Joint Lead Arranger Joint Bookrunner Co-Syndication Agent Semafo Prospectus Offering of Common Shares $C120 million Co-Lead Manager 12

13 Evidence of progress in the Americas 13 bookrun DCM deals and 38 bookrun ECM deals in the US and Canada in CY10 53 M&A deals in the Americas CY10, 8 involving publicly traded targets ~$US39b capital raised for clients in the Americas CY10 More than $US3b in corporate lending commitments in North America 18 months to 31 Dec 10 #4 North American physical gas marketer US stocks under coverage 222 Canadian stocks under coverage $A159b in assets under management 2 $C10b in assets under administration 31 Dec 10 Structured commodity financing portfolio of $US919m 31 Dec 10 #11 #8 equity dealer 3 research ranked Canadian ranked US equities One of the largest independent lessors of technology in North America $US24b in AUM uplift in Delaware Investments during CY10 30 investment advisors added in CY10 All values as at 31 Dec 10 unless otherwise noted. 1. PlattsGasDaily Dec As at 30 Sep Bloomberg Underwriter Rankings, Canada, Canadian Equity Offerings Greenwich Institutional Survey

14 Energy/Resources Case Study Building complementary group-wide capabilities Group-wide: Group-wide Integrated team established to promote coordinated approach to energy sector M&A and advisory Oil & gas and energy services expertise Specialist Acquisition & Divestiture capability through Macquarie Tristone Full service capital markets platform Trading Financial and physical gas, electricity, oil and ethanol (via JV) trading Corporate bonds, bank loans, securitised debt, credit default swaps Interest rate derivative structuring and trading Inflation-linked derivative structuring and trading Equities trading covering oil & gas, utilities, metals & mining, renewable energy Energy/ Resources Equities research MSG: Equities research covering oil & gas, utilities, metals & mining, renewable energy New York-based Global Oil Economist Internal credit research Financing Public and private equity capital Debt capital (including subordinated and convertible debt) Structured and project finance Royalty purchases and volumetric production payments Physical assets and funds management Landfill gas-to-energy facilities Gas production and distribution business Cogeneration plants, wind farms, biomass facilities and solar park Bulk liquid storage and handling terminal Renewable energy infrastructure investment capability Listed and unlisted funds with energy investment 14

15 Key challenges Branding and positioning Macquarie brand and capabilities less well-known in the Americas Integrated approach Evolving from single-product focus to delivering a full range of products and services to clients across sectors in an integrated way Adaptation vs differentiation Combining the best aspects of US bulge bracket model while retaining Macquarie s unique strengths, including appetite for principal transactions, entrepreneurial culture and speed to market 15

16 Conclusion The US is the biggest financial services market in the world - significant opportunity Unique positioning to capitalise on core strengths and the market opportunity Key hires and strategic acquisitions gaining momentum Continuing to build brand profile and ensure delivery of unified business A substantial and diversified business in the Americas, with comprehensive coverage in target sectors 16

17 Macquarie Group Limited Operational Briefing 8 February 2011 Presentation to Investors and Analysts