M&A activity boosts Macquarie AUM

Assets under management at Macquarie Asset Management (MAM) rose significantly from $568 billion to $693 billion thanks to acquisition activity during FY21.

In its 1H22 update on the Australian Securities Exchange (ASX), it reported that most of this acquisition activity occurred in the final quarter. Assets rose from $562 billion in March to $693 million by the end of the year thanks to the firm’s acquisition of Waddell and Reed Financial which was completed in April and brought over $100 billion in assets to MAM.

The division’s net profit contribution was $2,074 million, down 5% from $2,177 in FY20, while base fees were $1,985 million which was also a small decline from $2,021 million in FY20. Performance fees were also down from $821 million to $653 million.

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Infrastructure funds drove performance fees which included Macquarie Infrastructure Partners II (MIP II), Macquarie European Infrastructure Fund 4 (MEIF 4) and its Macquarie Super Core Infrastructure Fund Series (MSCIF).

The infrastructure division employed almost 2,000 people in 22 markets and Macquarie identified it as one that was “delivering superior returns following years of investment and acquisition”.

The firm said it expected next year’s result would be “slightly down” as the first half would include the Macquarie Infrastructure Corporation disposition fee in MAM and favourable market conditions for commodities and global markets.

This was in addition to factors such as COVID-19 duration, market condition and tax or regulatory changes.

“We continue to maintain a cautious stance with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment,” the firm said.

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