Macquarie Group, Australia’s largest investment bank and asset manager, is focusing on growing its international businesses, according to Chief Executive Shemara Wikramanayake. Despite recent weakness in some areas, Wikramanayake believes that the company’s overseas operations have the potential to contribute more to its bottom line.
In its recent report, Macquarie revealed that 65% of its net operating income during the first half of the year was generated offshore, with the Americas accounting for 32% of that figure. Wikramanayake highlighted the opportunities associated with the clean-energy transition as a driving force behind the growth of Macquarie’s businesses abroad. She expects the Americas division to have a significant impact on future profits.
Macquarie has been actively expanding its presence in the Americas since the 1990s. Its total income from the region is projected to reach 48% in fiscal year 2022. All three of Macquarie’s global footprint businesses–asset management, commodities & global markets, and capital management–are thriving in the Americas.
Wikramanayake emphasized that any growth, even if small in absolute terms compared to the U.S. market, is substantial for Macquarie and represents a significant portion of its overall footprint. However, the company faced challenges during the first half of fiscal year 2024, resulting in a decrease in net-profit contributions from the three divisions.
Macquarie Group’s focus on expanding its international businesses demonstrates its commitment to capitalizing on emerging opportunities and diversifying its revenue streams. With its strong presence in the Americas, the company is well-positioned to drive future growth and maximize its profitability.
Macquarie Asset Management Sees Growth Opportunities in the U.S.
Macquarie Asset Management recently reported some challenges, including increased operating expenses and a decline in net profit contribution from Commodities and Global Markets. However, the company remains optimistic about its international businesses, particularly in response to the U.S. Inflation Reduction Act.
Investing in a Net-Zero Economy
The U.S. Inflation Reduction Act is a key part of President Biden’s plan to achieve a net-zero economy by 2050. It aims to drive down the costs of clean-energy technologies to encourage wider adoption and decrease emissions. Macquarie Capital and Macquarie Asset Management are actively involved in projects related to this act.
Macquarie Capital, in particular, has principal projects that align with the opportunities created by the act. Additionally, Macquarie Asset Management is investing in various projects associated with clean energy. The company also plays a significant role in the commodities business by providing support to energy players in the U.S., helping with financing, risk management, and transport storage, including carbon capture projects.
Looking Ahead
Macquarie CEO, Shemara Wikramanayake, expressed confidence in the company’s future growth, especially in the Americas. She believes the contribution from this region will continue to increase.
In late October, one of Macquarie Asset Management’s portfolio companies, Corio Generation, collaborated with French energy giant TotalEnergies and U.S.-based electricity producer Rise Light & Power to develop an offshore wind project in New York and New Jersey.
Overall, despite some challenges, Macquarie Asset Management remains focused on pursuing opportunities in the U.S. and beyond.
