Macquarie Group eyes $9b bid for UK fund manager and insurer M&G as it beefs up asset management
The “Delaware-like opportunity” Ms Wikramanayake referenced was Macquarie’s $520 million purchase of Delaware Investments, yet another acquisition in the group’s growing asset management treasure chest.
Bigger outside Australia
The group – with roughly $737 billion in assets under management – has grown immensely outside Australia through acquisitions in fund management, the build-out of a private capital arm in the Americas and investments in infrastructure.
Roughly 52 per cent of the group’s staff reside outside Australia with more than 2700 in Europe, the Middle East and Africa and more than 3300 in the Americas.
Macquarie’s asset management arm contributed approximately 31 per cent of the group’s first-half net profit, behind CGM, which accounted for roughly 37 per cent.
Private markets AUM jumped 3 per cent to $284.3 billion, driven by fund investments and increased asset valuations.
Macquarie’s growing interest in asset management has some bankers viewing the group more like a global private investment manager rather than a local bank with corporate lending and advisory capabilities.
“Under Shemara, Macquarie is diversifying to look like this global powerhouse fund manager,” said one managing director at an investment bank, who was not authorised to speak publicly.
“If you think about how private equity has diversified into being broader asset managers, Macquarie is getting to that same spot.”
Indeed, a deal for M&G is reminiscent of Apollo Global Management’s $11 billion acquisition of annuities firm Athene, which wrapped up in January last year.
And looking at Macquarie’s commitment to asset management space, the amount it contributes to the group’s overall profits and its push to expand overseas all indicate that a deal for M&G could eventuate.
The media reports said Macquarie had not yet made an approach to M&G’s board. But they added Macquarie could sell M&G’s insurance business, or partner with a company like London-listed Phoenix Group, in order to structure a deal.
Morgan Stanley is advising Macquarie, while M&G will likely retain its house banks Goldman Sachs, Bank of America and Evercore.
A Macquarie spokeswoman declined to comment.
