Macquarie Group (MQG) Investor Tour 2025 Day 2 summary

Strategic priorities and growth outlook

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

• Quadrupled European advisory revenues over 15 years by shifting to external clients and expanding local offices in major markets.

• Private credit and principal finance book in Europe exceeds AUD 10 billion, with disciplined credit selection and a long-term average loss rate below 10 basis points.

• Infrastructure and energy capital business has invested over $2.5 billion since March 2022, focusing on digital, energy transition, and social infrastructure.

• Venture capital strategy leverages balance sheet flexibility and sector focus, with 49 investments, 36 realizations, and a realized IRR of ~40%.

Financial guidance and portfolio management

• Principal portfolio has grown to $A32.7b as of 31 Dec 2024, with $A26.5b in private credit and $A6.2b in equity investments.

• Annuity-style income now represents 59% of income, reflecting a shift toward recurring revenue streams.

• Expectation for more regular realizations and income step-up from later fiscal 2026/2027 as portfolios season.

• Targeting a business mix of roughly one-third each from advisory, principal equity, and private credit income, with each segment producing around $1 billion in annual income.

• Weighted average life of private credit loans is three years, with annual new investment capacity of about AUD 8 billion.

Business model differentiation and risk management

• Differentiation through flexible balance sheet deployment, bespoke client solutions, and deep sector and regional expertise.

• Strong local presence in EMEA, with staff in-country to navigate regulatory and market specifics, supporting global connectivity.

• Rigorous risk management culture, with quarterly portfolio reviews and proactive adaptation to market changes.

• Ability to invest across the capital structure allows for optimal risk-adjusted returns and client-centric structuring.

• Collaboration across advisory, principal finance, and infrastructure teams enhances deal origination and execution.