Final thoughts on Macquarie

It's decision time!!! Do I leave my BB job for an offer at mac?

I'd love to hear anything from you if you work at mac now or left recently.... how's life at mac? how does it compare to other banks? tell me more about the culture? do you ever have time to use the ping pong table???

THANKS!!!!!

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Comments (180)

Sep 10, 2008 - 4:47pm

Life at Mac is far better than anything in BB. Hours are much better, there is little bs and no face time. Yes, you will get to use the ping pong table.

However, that being said if your reasons for moving are solely "higher base and a growing company", I'd do a little more diligence. Higher base does not translate into higher comp. And, I'd argue Macquarie WAS a growing company. Now, their core infrastructure and principal investing business is scrambling to change directions in the current environment and the hope internally is to grow through 3rd-party advisory. Now you tell me whether you wanna be creating pitch books for Macquarie or a BB.

Sep 10, 2008 - 5:07pm

From what I've heard from people who work there, Macquarie is a highly reputable firm and is known for giving its junior people much more responsibility and in depth training than at any of the BB firms. An analyst at Macquarie, if capable enough, can become as equally qualified, if not more qualified in one year than an analyst at a BB can in three since the scope and depth of work is much greater. Most of your time is spent on financial modeling and other aspects of the investment process and almost none is spent on pitch books.

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Sep 10, 2008 - 6:01pm
Barbara Stanwyck:
From what I've heard from people who work there, Macquarie is a highly reputable firm and is known for giving its junior people much more responsibility and in depth training than at any of the BB firms. An analyst at Macquarie, if capable enough, can become as equally qualified, if not more qualified in one year than an analyst at a BB can in three since the scope and depth of work is much greater. Most of your time is spent on financial modeling and other aspects of the investment process and almost none is spent on pitch books.

Again, this is what it USED to be like when Macquarie was basically a principal investing shop. This no longer is the case as I noted above.

Sep 10, 2008 - 6:09pm
mick:
"Higher base does not translate into higher comp."

Are you implying lower bonuses?

Yes, that's exactly what I'm implying. Mac traditionally hasn't followed the Street's comp range. In good years they won't hesitate to pay above street and in bad years they won't hesitate to pay below.

The US office are growing if by growth you mean headcount. However they've struggled to increase the size of funds available to invest and advisory fees from working for these funds is where Macquarie generates the vast majority of its revenue in the US. Same amount of money, double the people. You can easily do the math.

However, if you don't think your BB is going anywhere in the near future either than I would definitly move to Mac. Take the guaranteed higher base and the better life.

Sep 10, 2008 - 6:10pm

given that i actually work at Macquarie, i can tell you first hand that you are wrong and i am right. The lions share of what we do here is principal investing. Macquarie has diversified its business model into other areas recently which has greatly augmented the strenght of the business. It has done extremely well compared to its peers in the U.S. market and people from all of the BB's and some PE firms have been coming in.

Sep 10, 2008 - 9:21pm
Barbara Stanwyck:
given that i actually work at Macquarie, i can tell you first hand that you are wrong and i am right. The lions share of what we do here is principal investing. Macquarie has diversified its business model into other areas recently which has greatly augmented the strenght of the business. It has done extremely well compared to its peers in the U.S. market and people from all of the BB's and some PE firms have been coming in.

First you "heard from people who work there" and now you "work there"?!? Either that's the quickest interview- to-offer timeframe ever or Mac's HR really have a lot of time on their hands. At least try not to sound like the campus recruiting brochure.

Sep 10, 2008 - 6:19pm

When the new head of NA came in, he told everyone that the new focus for growth would be into third party advisory. Also, as the various funds aren't having the easiest times at the current moment raising additional dough for new stuff, many projects are being left on the vine.

Some groups are still doing "principal" (advisory work for captive funds), but many others are just trying to find equity for any deal they have, or pitching for advisory mandates. Mac is also trying to grow its ECM practice from scratch.

I do however agree with you on the "giving its junior people much more responsibility," the training (unless you mean on the job and not formal) is pretty much a joke compared to the street if you haven't already been an analyst.

If you want a better life, guaranteed base, and less pitching, go with Mac. If you work for a quality IB and still want to do classic PE (as in a banking lifestyle where you get paid more), stick around for another year or two and wait for the markets to improve.

--There are stupid questions, so think first.
Sep 11, 2008 - 4:59am

I work for Macquarie in Asia and over here we ARE the bulge bracket right now. Other than UBS and GS in certain markets, we are pretty much tops when it comes to big deals in Asia. We are still hiring and my office of 10 has grown to 25 in the last 3 months with seniors execs from ML, GS, JPM, BoA.

But yeah, principal investing is not so much the craze right now, given all the concerns on the need to shore up the balance sheet.

As some one who decided to move back to Asia after a stint with GS in London, I can assure you that things will be very very different in term of structure and responsibilites. The training is an absolute joke, but that is pretty much part of the Macquarie "culture". No one really indocrinates you into a certain way of doing things or tells you how things should be done the "Macquarie way". You pretty much run your own show.

While this may sound cool, it will be a little more than scary for anyone who jumps in here from a rigid US BB environment with all its heirarchies and rules. The money will more or less be above market but to me the real killer point was the speed with which you can move up. I have met 30-31 year old MDs (called EDs here) and almost all VPs are sub 30.

Think about how comfortable you are in running around in an unstructured environment. But should you choose to join, you won't have too many regrets later. Hey there is something to be said for over 15 years of non stop growth and zero layoffs in this market!

Sep 12, 2008 - 2:55pm
boom:
I work for Macquarie in Asia and over here we ARE the bulge bracket right now. Other than UBS and GS in certain markets, we are pretty much tops when it comes to big deals in Asia. We are still hiring and my office of 10 has grown to 25 in the last 3 months with seniors execs from ML, GS, JPM, BoA.

But yeah, principal investing is not so much the craze right now, given all the concerns on the need to shore up the balance sheet.

As some one who decided to move back to Asia after a stint with GS in London, I can assure you that things will be very very different in term of structure and responsibilites. The training is an absolute joke, but that is pretty much part of the Macquarie "culture". No one really indocrinates you into a certain way of doing things or tells you how things should be done the "Macquarie way". You pretty much run your own show.

While this may sound cool, it will be a little more than scary for anyone who jumps in here from a rigid US BB environment with all its heirarchies and rules. The money will more or less be above market but to me the real killer point was the speed with which you can move up. I have met 30-31 year old MDs (called EDs here) and almost all VPs are sub 30.

Think about how comfortable you are in running around in an unstructured environment. But should you choose to join, you won't have too many regrets later. Hey there is something to be said for over 15 years of non stop growth and zero layoffs in this market!

Congratulations on your office of 25 ppl doing so well. But you better be doing well enough to feed the hundreds of bankers in the U.S., Canada and Europe because they're not doing any deals right now which means no money come bonus time.

And how can you say Barbara isn't all that wrong when you contradicted everything she said about Mac still being primarily a principal investing shop?!?

Oh, and there have been layoffs. Nothing big but certainly not zero.

Sep 17, 2008 - 12:03am
boom:
I work for Macquarie in Asia and over here we ARE the bulge bracket right now. Other than UBS and GS in certain markets, we are pretty much tops when it comes to big deals in Asia. We are still hiring and my office of 10 has grown to 25 in the last 3 months with seniors execs from ML, GS, JPM, BoA.

I'm sorry, but I am curious as to which Asian market you are talking about, because it sure is not Hong Kong or Singapore.

I do know the headcount numbers in the Singapore office are growing at an exponentional rate with no layoffs before. But headcount does not translate into being THE BB.

Sure in Australia you guys are no.1 with UBS, no argument there, but in rest of Asia? I do not remember seeing any major deals or strong specific presence in any of the traditional emerging South-East Asian economies like Indonesia and Vietnam, or even China/HK.

Sep 12, 2008 - 2:42pm
dealbooker:
Does anyone know where ED ranks at Mac Cap? My former boss at Bear (senior MD) just landed at Mac as an ED. Also, he did ER at Bear, does Mac also have ER?

Mac titles work as follows:
ED=Executive Director=Senior MD
DD=Division Director=MD
AD=Associate Director=Senior VP
Senior Manager=VP
Manager=Senior Associate
Executive=Associate
Analyst

And yes, they have ER at Mac

Sep 12, 2008 - 3:48pm

Err..Condolences on all your down time mate, don't worry though we should manage to keep the kitchen fires burning in your houses.

I did say pricipal investing is not much of a craze, but fact remains an average banker in Macquarie still spends a lot more time doing principal deals and related work over classic ECM/M&A. It's not like 2007, but it's still a pretty significant part of the current work and pipeline.

I don't recall having heard of any layoffs anywhere across the board. Can't seem to find any related news on google, so I am gonna have to stick to zero layoffs. Unless of course you are mixing up layoffs with performance related cuts.

Sep 17, 2008 - 12:54am

Macquarie definitely has a large presence in Asia...everyone knows who they are

My question echos mick's concerns. Is Macquarie healthy? Though debt is increasingly hard to get, shouldn't infrastructure investments be attractive to investors right now?

Sep 19, 2008 - 12:02pm
Fads_86:
Macquarie definitely has a large presence in Asia...everyone knows who they are

My question echos mick's concerns. Is Macquarie healthy? Though debt is increasingly hard to get, shouldn't infrastructure investments be attractive to investors right now?

But the concern/perception of Mac is that they over lever and over pay for all their assets. Infrastructure, conceptually, provides steady cashflows. But when you take those cashflows and lever it to the max (sometimes over and beyond what near-term cashflows can even support) even slight deterioration to performance can cause stresses to the investment.

This is why Mac's getting hammered. People get the investment thesis of infrastructure, but they don't get the complicated way Mac structures these investments. And lack of transparency has been getting punished in this market.

Sep 17, 2008 - 11:48pm

That report popped up in The Australian newspaper. As per Macquarie's response to the article lodged with the ASX:

"A report in today's Australian newspaper which claimed that Macquarie Group needs to refinance $A45 billion of debt and that $A5 billion requiring refinancing by March 2009 "could prove difficult to get away" is false and inconsistent with information provided to the market by the Group.

Since 31 March 2008, the Group has raised term funding of $A6.4 billion from a variety of sources. In addition, from 31 March 2008 to 31 July 2008, Macquarie Bank Limited increased deposits by $A3.8 billion to $A17 billion. The Group also has an undrawn $A3.8 billion senior credit facility.

Macquarie remains well-funded and well-capitalised with liquid assets of more than $A20 billion as at 30 June 2008, which is twice the level of a year ago.

The author did not provide the Group with an opportunity to respond to these claims."

S&P came out and re-affirmed the Group's ratings, but lowered their outlook to negative due to the markets.

"Macquarie Group Limited today noted that Standard and Poor's (S&P) had reaffirmed its ratings for the Macquarie group of companies: 'A' long-term and 'A-1' shortterm issuer credit ratings on Macquarie Bank Limited, and 'A-' long-term and 'A-2' short-term issuer credit ratings on Macquarie Group Limited, Macquarie Financial Holdings Limited, and Macquarie International Finance Limited.

The Group also advised that it had an exposure to Lehman Brothers group of $A21 million and $A33 million to American International Group which separately and combined are not material."

Massive over-reaction in relation to the US investment bank problems, with the 20% fall today mirroring what was seen with Goldies and Morgans overnight.

We'll be OK, providing we don't get shorted or sold out of the market in the next month (down 17.8% to $27.89 as I type this).

Sep 18, 2008 - 12:16am

Mac is just following the international IB's, and the shorts are trying to put on additional pressure.

By the way, Mac is still very much focussed on principal in North America. The difference is with the new head of North America comes an ambition to deliberately set up a niche advisory and ECM business. Previously, there was none. Now there will be some.

No lay offs, still hiring strongly.

Sep 19, 2008 - 1:09pm
CKnew:
Mac is just following the international IB's, and the shorts are trying to put on additional pressure.

By the way, Mac is still very much focussed on principal in North America. The difference is with the new head of North America comes an ambition to deliberately set up a niche advisory and ECM business. Previously, there was none. Now there will be some.

No lay offs, still hiring strongly.

Mac is delusional if they think they'll remain a major player in the principal investing game in North America. Fortunately, the management isn't stupid which is why they are expanding into advisory and ECM. However, seems as though many of the rank and file have yet to come to grips with reality.

Mac's traditional source of funds, its listed vehicles, are dead in water. It will be years, if ever, before these listed vehicles can raise funds again through the public markets.

So, where does the money come for principal investing?

Sep 19, 2008 - 6:22pm

Major player? Nah, just a major part of their North American business - which is small. ECM and advisory is only really there to provide bulk to the principal ambitions.

Listed funds? The percentage of mac funds that are listed is very low. For the last 2 years, barring the odd one or two, all funds have been unlisted equity - which have been performing well. Unlisted equity has been relatively easy to raise.

Principal money is good old fashioned equity. Remember that stuff? Quaint, I know...

The thing people don't get about Macquarie is that they aren't just a small Wall Street bank. They are closer to a hedge fund/PE hybrid with a bank stapled on to the side. No real trading or structuring side to speak of.

Dec 4, 2008 - 8:22am

it was almost all junior employees that got cut. the majority of the second year analyst class was axed, as well as some associates. Maybe a few VP-level people, but that was really not the main focus of these cuts

Dec 4, 2008 - 1:28pm

While a lot of second years were cut, the associate class was annihilated. This was actually harder to notice as so many of them were in bid rooms, on vacation etc. A number of them found out while they were on vacation because they weren't around on the official cut day.

A few VPs had been cut earlier and will be the focus of the next round of cuts. The VP cuts have been mainly performance based so far and will continue to be.

Macquarie has completely destroyed its credibility to its employees as most of the people it cut were those who wanted to stay long term and not those on a short term track.

To the 2009 analysts, there will be lots of busy work, you will have no one at an experienced level to help you (below vp or md).

--There are stupid questions, so think first.
Dec 4, 2008 - 7:42pm

Well, this sucks considering I just signed with Macquarie. I thought I was done with worrying about jobs until I actually start next year, but I guess I should have known better with how the market is.

Good luck to ponzi and PowerMonkey...hope you guys make it through okay.

Jan 13, 2009 - 10:22pm

It is surprising that they axed so many analysts and associates given the large amount of graduates they recruited for 2009... at least for the Toronto office.

Any insights on how many people were let go from the Toronto office?

Jan 17, 2009 - 7:03am
ThePuzzledOne:
It is surprising that they axed so many analysts and associates given the large amount of graduates they recruited for 2009... at least for the Toronto office.

Any insights on how many people were let go from the Toronto office?


That's probably why they've axed so many people. I'd imagine they'd rather lay people off, rather than renegade on analyst contracts.

Does anyone know how good their advisory dealflow is in the UK? How will it chnage in the future? I've looked at some TR tables and Mac are nowhere in sight.

Thanks.


Just my 2c.

__________ Just my 2c.
Jan 17, 2009 - 7:17am
HerSerendipity:
Macquarie is really good. Yes, there is some IBD but I believe it's almost a front as there is a lot of merchant banking and private equity work (especially in power/energy/infrastructure space). They usually pay above the Street.

Do a thread search -- it will help.

Can you be more obvious.

Pay above street? Lol yes if street means homeless bonus above 10k a year.

Jan 17, 2009 - 7:07am

One do a thread search, and two PM me with specific questions.

In Oz, they and Goldman are to cocks of the walk. In the states its a hybrid between PE and Banking. Above street pay, less than street hours, a bunch of Aussies so its pretty laid back.

--There are stupid questions, so think first.
Jan 17, 2009 - 7:10am

I'm not so sure Macquarie pays above the street in the US. I have some friends there who have specifically commented (negatively) about pay, and who are getting crushed hours-wise.....

Jan 17, 2009 - 7:11am

On skins1:

On the issue of pay, let me expand slightly. Macquarie pays above street base salaries, and has over the past few years paid above street bonuses as well. This year, bonuses seemed like they were crappy, especially at the 2nd year analyst/1st year associate type levels.

That is, until the street numbers actually came out on 2nd/3rd year analyst numbers. Top tier 2nd year bonuses this year at a number of firms were lower than top tier first year bonuses last year. So, you could be quite upset by your number with a March year end until you found out just recently what street really was.

As I have said before, bonus pay at Mac really depends on so much more then at other firms (its not just a banding its also group, deals, etc) because it is ostensibly "profit share."

To the hours, well if you are working on very live deals, you work hard that's the way it goes. When your deals are in a lull, you don't work so much.

--There are stupid questions, so think first.
Jan 17, 2009 - 7:12am

powermonkey, can we get some hard numbers on bonuses at Macquarie for this year? maybe for 1st and 2nd year analysts and 1st year associates, or whatever numbers you know. also, are first year bonuses pro-rated due to the march pay date? thanks.

Jan 17, 2009 - 7:13am

Bonuses are prorated based on everything. So, if you work 5 days in Australia during the year and then transfer to the US you will get a bonus based on that, then a 360 day bonus for America. So, first years and new hires get bonuses based on their exact start date (very different from most firms).

Some first years got as much as 70k annualized, but this obviously depended on the time they were at Macquarie. Macquarie is much more open to flexible start dates as the training program is held year round and can be taken after working for awhile. This means there were first years with 6 months and first years with a full year behind them.

Macquarie this year paid experienced analysts (people who got their promotion to associate at the same time as their bonuses) 70k-95k (annualized). Some of these people were in their third year of banking, some their second. Salary varies widely for people in this position as well from 70k-90k (depending on exactly how you came into Macquarie and into the position).

--There are stupid questions, so think first.
Jan 17, 2009 - 7:16am

Second geetarjoe's comment on Mac's Canadian business. In fact,it has a very large resources group around the globe. Well, not as big as its infra teams.

In HK, Macquarie's base salary is well above the street. Heard some negative voice on its bonus though recently. Generally speaking, it's growing really fast in Asia and participating in many major deals,competing with other BBs. I'd assume the same thing is happening in the US. But perhaps harder. Is it?

Macquarie's business is pretty focused,good and bad. At least, you'd expect doing deals whichever team you join. That's why it has such a team.

Jan 17, 2009 - 7:18am

Macquarie Groups (Originally Posted: 04/11/2008)

Anybody knows anything about Macquarie industry groups in NYC? Just got an email from HR asking to pick a group but there is no sell day or any other source of information provided, so I don't really know what to base my selection on.. I know infrastructure is probably the strongest group in MacCap but I don't know anything about the other groups..

Thanks a lot for any insights!

Here's the list:
Infrastructure and Utilities
Oil & Gas
TMET (Telecommunications, Media, Entertainment and Technology)
Property
Industrials
Restructuring
Equity Capital Markets
Debt

Jan 17, 2009 - 7:20am

Before I go into the overviews of the groups, keep in mind that as I have said in my prior posts, this group preference is just a guidepost for them to keep in mind. Staffing is done much more on an as needed basis. So, while you may pref infrastructure or TMET you could end up in Debt if thats where the deals are and where they need people. Now onto the descriptions:

Infrastructure and Utilities: Really two separate groups
-Infrastructure: Mainly toll roads and airports, in fact there is a toll roads subgroup. This is the mainstay of the firm in the US and globally, you will have dealflow on big, prestigious deals, and you will work. Only problems with this group are that the level of hours you put in approaches normal banking and basically all toll roads are alike so there's not a ton of deal diversity
-Utilities: Decent group, be prepared to work on the same deal for 2 years. Remember there is a lot of red tape and bureaucracy in the utilities space. Did you read about how Macquarie bought Puget Sound Energy, well a deal like that took 6 months to get to that point and probably has another year or two till its finished. That being said, its a fairly interesting space

Oil & Gas: Interesting space, Macquarie isn't always the most competitive bidder in the space. Smaller group, so I don't have that much commentary on them.

TMET (Telecommunications, Media, Entertainment and Technology): I actually know very little about this group, their deals overlap with Property, and its not our forte.

Property: One of the newest and most profitable groups in NA. As the name suggests, they work on deals back by property, REITs, housing, etc. The group also does, parking, FBOs (look it up), Wireless towers, distressed CMBS, and anything else they can find. Extremely opportunistic and lean group, good hours and good people.

Industrials: Largest group in North America, has a good deal flow and is the most like normal PE in the types of acquisitions that they target. If you're a fan of MM PE its a pretty good group. As the largest group, there are a lot of people between you and your goal of standing out and getting a share of fees and promote.

Restructuring: Post the acquisition of Guiliani Capital, Macquarie actually has a pretty decent restructuring group. If you are interested in it, couldn't hurt to do some work in the space. Fairly long hours as the group head is very motivated and stays very late (MD stays till 10 or 11 on a regular basis)

Equity Capital Markets: Growing group, no deals, new initiative for Americas (why would you join Macquarie to go to ECM)

Debt: See ECM

--There are stupid questions, so think first.
Jan 17, 2009 - 7:23am

If you are interested in keeping the door open to corporate (rather than infrastructure or real estate) PE afterwards, which group is best? Or, are you better off choosing the groups in which Macquarie is strongest?

Jan 17, 2009 - 7:24am

also wondering about jeffrey's question. my inkling is that you should still go with what the firm is best at to get the most exposure, but let's see what power monkey has to say.

Jan 17, 2009 - 7:25am

At first I was tempted to tell you guys, go for the strongest group, ie Infrastructure, but as I thought about it, here are my reactions.

First off, Macquarie is a place to build a career. Whenever people ask about the exit opps, I feel this is very important to note. Macquarie likes to promote internally and does it very quickly. Its two years analyst then automatic promote to associate (or you get fired but it very rarely happens), then its 1-2 years associate, 1-2 years senior associate, and on up. Macquarie has been know, for good performers, to promote every year, meaning there are people who go from analyst to MD in 5-6 years. At all levels, there is profit sharing on deals (yes it scales with your level). Macquarie has a program where in 2 years you get a Masters of finance in IB (from INSEAD), while working, by taking off 3 weeks at a time earning your salary and they'll pay for it. You get above street salary and bonus, while you should always keep in mind potential exit opps, think of Macquarie as a place to go for more than a 2 year stint.

That all being said:

-Everything Macquarie does is infrastructure, or infra-like broadly speaking. When Mac does TMET, it does wireless towers, locals gaming, slot machines. For Property, it looks to high barrier to entry, long term, stable cash flows, low volatility etc.
-Every group does deals, its up to you to stick up your and and get your name associated with them. Anyone at Macquarie for a few years will do an LBO, probably have some experience on a PPP type deal (parking, toll roads, airports, bridges, tunnels, whatever).
-Infrastructure is the largest group at Macquarie in NY, the deals that it works on are GIGANTIC, 15-20 people deal teams in a room for a year type deal teams. This is a pro and a con, you work on high profile deals, but don't do many of them.
-TMET and Property are much smaller, so you get a lot more one on one with senior level personnel and more responsibility. Smaller deals on the whole, but you get more of them on your resume.
-Like coming out of any firm, it is all in what deals you work on, what kind of exit opps you have. So, if you do one toll road PPP deal while at MacCap and nothing else, you will just be able to goto an infra firm. If you do a REIT take private, you have a slightly broader pool of options.
-Broadly speaking TMET and Industrials are the most normal PE like.

If you are gonna focus on exit opps, your exit opps will depend on the deals you work on. So, if you want to go straight up PE do TMET, Industrials, or Property. If you want to exit to an Infra fund, well I shouldn't need to answer that.

Macquarie is not, let me repeat, not on the normal circuit, it is not a 2 year, go to some PE shop, goto B-school, go back to PE kind of place. If that is what you want, you should go to a BB or MM bank. If you think you want to do something PE like long term with good pay and good internal options with a potential exit if necessary, go Macquarie.

--There are stupid questions, so think first.
Jan 17, 2009 - 7:27am

At most banks, they only require associates and above or trading related personnel to take the tests. Macquarie has everyone do it for a number of reasons.

-Allows analysts to be in a client facing role
-Limits liability
-Costs very little
-Not a "two and out program" so you'll have to take it anyway
-Macquarie will put anyone in front of investors and you can't talk to them without the licenses

--There are stupid questions, so think first.
Jan 17, 2009 - 7:28am

This is the first time ever Macquarie has asked incoming analysts for group preferences. So whereas in past years ppl were more generalists, this was more a result of a lack of resources rather than the norm. All other major offices operated strictly within industry groups and this will be the case for newcomers going forward. The only guys that will really remain generalists are those associates and vps with a history of working with directors across different groups. With 70+ analysts, no need for directors to poach new, unknown ppl from other groups to work on their deals. SO, CHOOSE YOUR GROUP WISELY.

In order to gauge the marketability of your analyst years at Macquarie (despite PowerMonkey's valid points on Macquarie being more than a 2 and done program, let's face it, no one is ever wedded to a specific company, especially in banking, and its nice to know you can always go elsewhere) you must follow the money - as in, which groups have money to do deals. Doing deals, at the end of the day, gets you paid, gets you experience and opens doors for better opportunities.

Infrastructure: Not much really to say other than 90% of Macquarie's funds are earmarked for infrastructure. Specifically, Macquarie's 2 flag ship funds are a toll road fund and a airport fund. Lots of general infra funds as well.

Oil and Gas: No money, not much of a team.

TMET: 2 dedicated funds (1 in media and 1 in communications infrastructure). Decent, but not great. It is NOT comparable to a TMT group at most investment banks. It is infrastructure TMT meaning there is nothing resembling anything close to Silicon Valley related companies. Have not done any significant deals. The one deal of note, a tower deal was done by guys that aren't even in this group.

Property: "One of the newest and most profitable groups in NA"??? Agree with PowerMonkey that it is the newest but far from the most profitable. If he is basing that on 1 single deal that they've been able to do than I'd question his knowledge of Macquarie. No dedicated fund and competes internally with the Real Estate Group (which is not part of MacCap (aka. the investment bank of Macquarie). Look mostly at nursing homes and the like if that's your thing.

Industrials: Had some momentum and have made a lot of money in recent years (due to a handful being absolute homeruns). But many PE firms have had bigger homeruns in recent years competing in the same space because of the easy money out there. With no dedicated fund and huge team (basically all the non-restructuring Giuliani guys ended up in this group) prospects aren't fantastic for a junior guy in this group. You could end up working on small, crappy third-party advisory deals. (And I mean REALLY small)

Restructuring, ECM and Debt: Agree with PowerMonkey on these. Why would you come to Macquarie to work in any of these groups?!?

Best exit opps are in the infrastructure group. Everyone and their mother has raised infra funds recently and who do you think they want to fill their ranks with? Macquarie guys with infra experience are at a premium. On the flip side, though being in infra group provides the most exit opps, you'll question why you'd leave the #1 infra group (unless for $$$).

If I'm a incoming analyst my choices are:

  1. Infra
  2. TMET (at least they have 2 dedicated funds to source equity)
  3. Industrials (because there is a chance, though it may be small, of working on a homerun deal)
Jan 17, 2009 - 7:29am

Thanks for the great advice, blah and powermonkey.

I'm in the process of choosing groups as well right now and put infra as my top choice. What do you guys think of the Mac Cap Funds groups? It's not what I signed up for but it was included in the list of teams that we could potentially get put in...

Jan 17, 2009 - 7:31am

thanks very much power monkey and blah

another question though:

power monkey, you say that Macquarie is not a traditional 2 year analyst program, which is true. but what would stop individual analysts from still treating it like one and looking for exit opps after a couple years? is it that the mega-funds or even middle market PE players wouldn't respect the maccap experience? not equivalent skills to BB analysts? something else?

basically my overall question is how can you best position yourself for traditional corporate PE while at Macquarie? can you keep that door open to you or will you almost definitely be pigeon-holed long term if you work in infra?

Jan 17, 2009 - 7:33am

Exist ops coming out of Mac will be comparable to most shop. Top ranked analysts from Mac are headhunted for opportunities at PE and hedge funds.

Your experience will be different to working at a major BB but I would argue that it prepares you better for PE and hedge fund interviews. Why? Because you would have done for 2 years what you will be doing at the PE/hedge funds: that is, analyzing investments, modelling potential acquisitions, doing due diligence, working to secure financing, creating business plans, looking at investment exit options, etc.

That being said, there isn't a history of Macquarie guys going to the KKRs, Blackstones and TPGs of the world but that's more a result of the few truly Macquarie junior guys available that major funds would find to be attractive candidates. (I would say there are only about 6-8 out of the 100 or so that fall under this category. The rest haven't been around long enough to have built up the skillset within Macquarie. These 6-8 guys have no shortage of other shops they can jump to in a heartbeat if they wanted to).

As for how to best position yourself? Its no different than at any other shop. Become recognized as a top ranked analyst and the opportunities will find you. Macquarie partners up with or competes on auctions against top funds in the PE and hedge fund world all the time. So you don't have to worry about exposure to the traditional PE world.

Jan 17, 2009 - 7:35am

Macquarie's investments have done poorly, very poorly. They have been moving towards more traditional investment banking advisory work since they cant raise enough money to keep all the people on the advisory and fund side employed. Their foray into the advisory space was poor at best since the Giuliani Capital Partners team was a bunch of dumb blue collar investment bankers who couldnt do a deal if their life depended on it. They have fired all except a few of the Giuliani people, there were about 80 originally across the U.S.

Just as a heads up, Macquarie has laid off a considerable amount of its first year analysts that started in the summer of 2008 and has paid them very little severance pay, about 1 month according to the first years I talked to who were laid off. Bonuses this year will be between 0% and 12% of base salaries.

In my opinion, the shine is off of Macquarie's star for good since there are many other competitors in the infrastructure space these days that have money and talent to eat Macquarie's lunch. On the advisory side, it is positioned to become another half-ass advisory operation pleading with companies to do some shitty work in return for a modest fee.

Apologies for the negative tone, but this is the reality I am afraid to say. I would tread with caution if I were you and immediately begin thinking of plans post Macquarie so that you can be ready if they do decide to lay you off or business is slow.

Jan 17, 2009 - 7:36am

I'd be interested to hear if anyone knows what Macquarie bonuses were before this most recent year (I've heard kacryawbnraatbs saying that first years were 5-10k). Anyone know what they were in 2007 or 2008 for first years?

Jan 17, 2009 - 7:39am

Errr I am new to here and this is literally my first post on this forum...

I know all the above is regarding to Macquarie Capital in north america. I was wondering what about their offices in asia, particularly in HK. Do all the stuff above still apply to their HK office? Such as the more than 2 years program?

Also, I have an interview coming up for Macquarie, it's with the Industrials team in HK. Anyone knows about how is the industrials team in HK?

Thanks a lot!

Jan 17, 2009 - 7:40am

Macq is very solid in Asia, much moreso than in NA or Europe. Lots of IPOs across many industries and that will probably continue. Not really 2 and out either. Industrials is actually one of the top groups in NA and think it is strong in Asia as well. Good luck.

Jan 17, 2009 - 7:53am
balooshi:
^ Urban legend.

Haha, I've heard the same thing, although, I have been told they are epically loose when it comes to American men...so, a country full of 7s willing to put out owns a country full of 10s that are stingy with the box.

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
Jan 17, 2009 - 8:03am

Macquarie - Are they worth it? (Originally Posted: 04/04/2014)

Can anyone please tell me Macquarie's Ivenstment Banking reputation in NYC as of recent. I know that they completely tanked in the recession and they've been trying to get back on the map. What is their reputation as of recent? Are they still a weak firm that I should be avoiding? Or is this a firm that really is making strides for a comeback with upside and exposure to learn?

Any feedback is greatly appreciated.

Thanks

Jan 17, 2009 - 8:12am

Macquarie is kind of weird, they are setup in the US to handle principal financing transactions (Private Equity). So, in the NY office you work on deals financed by Mac on balance sheet or by raising wholesale and retail equity on an as needed basis. All the running of assets is done by a separate group then the transaction team.

Pay: Better than street, they are trying to grow very quickly and are willing to pay to get and keep people. Bonuses tend to be 20%+ over street, base 30%+ over street

People: Crazy Australians make up more than half of the US offices, local hires tend to fit in in that sort of environment. They like entrepreneurial people, self starters etc, since they tend to give you less direction and structure than a classic bank.

Firm: Well positioned in the current markets with access to Australian equity. Little to no advisory business in the states (no pitching). No classic debt or equity financing (in the US).

In all, if you want to move out of a classic big bank to a hybrid PE/banking role then its a good move. I work less, get paid more, don't pitch, I have worked 1 weekend since being here. That being said, its not one of the big P/E shops and people tend to stick around for a long time (so there is no consistent exit opp).

If anyone has more questions on MacCap (New name post restructuring of Macquarie into banking and non-banking activities). Ask them, or PM me.

--There are stupid questions, so think first.
Jan 17, 2009 - 8:16am

hey could you give us an indication of what kind of base/bonuses they pay in NY for second and third year analysts?

Jan 17, 2009 - 8:14am

So, in a normal PE shop there are three functions, buying/selling businesses, running businesses you own, and raising new funds.

At Macquarie these functions are done by three different individuals.

  1. corporate finance/IBG/Capital Advisors (depending on the part of the world): Buy and sell businesses. You buy businesses for Macquarie's balance sheet and for the funds managed by Macquarie. Sometimes you will sell existing Macquarie, or Macquarie managed assets, but usually only as part of a larger transaction. You buy something, put it on balance sheet while you find the equity, then you "sell" it to the newly formed entity.

  2. Funds management / IBFunds: Run the existing assets on a day to day basis (read board reports, accounting reports etc). Also responsible for viewing and vetting opportunities presented by the "banker types."

  3. Private placements: Raise equity from institutional investors around the world.

These are fairly broad boxes and a CF/banker would do all three from time to time as needed for larger deals. Someone in funds or placements would only do the specific functions of their groups. In general, bankers work more than the other two types of Macquarie workers, but still less then at a BB. During crunch time on a deal you will still work hard, but if your MD comes to you with some work on a Friday that isn't necessary for a deal to close after the weekend they will not expect weekend work on the item.

If you do decide to take a job in CF at Macquarie, be prepared to do some accounting detail you never cared about, call up investors to raise funds, or pretty much anything you can imagine as part of a deal cycle. You will even create all of the holding LLCs etc that just magically happen at a bigger bank.

--There are stupid questions, so think first.
Jan 17, 2009 - 8:15am

Macquerie does one thing amazing: infrastructure. Not sure about pay, etc, but it is well-known and most BBs are trying to replicate the group.

Jan 17, 2009 - 8:17am

"Pay: Better than street, they are trying to grow very quickly and are willing to pay to get and keep people. Bonuses tend to be 20%+ over street, base 30%+ over street"

2nd years on the street get paid 70k, with bonuses last year topping out in the 110k range (Depending on who you believe).

Bonuses tend to be in the 30% above street, but unlike a BB if you are a major screwup they will pay you below street or even fire you (for the true douchebags). They don't view themselves as a two and out program or even as a two year program, but as a real job or career where if you're good they will promote you quickly and pay you right.

--There are stupid questions, so think first.
Jan 17, 2009 - 8:18am

I sent you a PM regarding MacCap with some questions. Also, PowerMonkey if you decide to keep your career going there, do you have options to relocate, since they are worldwide, I could see that being a huge plus and attractive for outside candidates.

Jan 17, 2009 - 8:20am

$70k is street average for BASE.

The career numbers link you posted says New York median base is $70k and bonus is $103k. With $90k 2nd year salaries at Mac, I'll stop being cute and calculate it for you, is ~30% above street for base salary.

--There are stupid questions, so think first.
Jan 17, 2009 - 8:21am

Yes there are options to relocate or move jobs to different functions within the bank. However, there is little opportunity to move Australia (they have so many people there that they routinely get sent to America). Globally, London, Southeast Asia, Emerging areas of Europe, and Canada would be the main areas of movement (broadest scope of work in these areas and still growing practices).

Within the states there is a fair amount of mobility. Offices other than NY in the states tend to have a limited focus. Most, if not all, normal CF work is done out of the NY office. For example, Chicago tends to focus on Funds management and has some former Guiliani capital folks doing different things.

--There are stupid questions, so think first.
Jan 17, 2009 - 8:24am

30% base above street is believable but 30% bonus above street? why isin't everyone banging down their door?

Jan 17, 2009 - 8:26am

Accent1000:
For first years, base is above street (don't know exactly how much), bonus 30% above. As far as training goes, the training program itself is not as good as some of the BBs (3-4 weeks as opposed to as much as 6-8 weeks at some of the big players). It covers roughly the same items in a similar fashion. In terms of training in general (as a means to prepare yourself for PE or business school), they do an excellent job. The modeling is much more in depth than anything you will do at a BB. This is because, like at a PE shop, you really care about the ops portion of a model. So you will model out individual salaries, and the flights the CEO takes that only cost a few K. They also believe in giving a lot of responsibility. However, the training is all industry, M&A, private placement oriented. You won't be as involved in debt raisings or public equity. MacCap does that sort of stuff in Australia but not the US.

The type of exit options is a good question. Since not many leave in the states its harder to say, but people go to B school, the internal INSEAD 2 year program, portfolio companies, other infra and real estate PE. People who leave MacCap are usually leaving NYC, so what they end up doing is a very mixed bag. You would be qualified to do any job that PE or IBanking would prepare you for including both of them. As the analyst program in the states continues to expand, MacCap is getting people who look at the job a little more like a normal bank and are going in to their interviews with a 2 year type stint in mind. Due to the age of the recruiting effort in the states its hard to tell where these direct hires will end up.

Ermen:
Well first off, people are banging down the doors, especially at the mid-upper levels in NYC. For junior guys, hiring is way up, however there's a lot of education that has to filter its way through the market in order to get the general public aware of the advantages.

Second, its a hybrid opportunity, its a mix of infrastructure PE and banking. So, if your the kind of guy who would do his two years at the major BB of your choice and then go into the major PE firm of your choice, MacCap isn't necessarily your thing. The KKRs of the world will pay you their obscene salaries and phantom carry and whatnot for two years before sending you off to business school. Where as MacCap will pay you better than your banking compatriots, with better options to ascend and earn lots of money on deals without leaving. Its in the middle.

So, it all depends on your risk strategy especially in the current market. Also, as I said before the analyst recruiting program (direct recruiting at US universities) is fairly young.

CPA Guy:
Yes people move between all of the various functions. Its easy to move from MacCap/IB to other functions and much more difficult to move the other way. Essentially you have to be qualified for the IB/MacCap job to begin with and show that you are a top performer in your other group.

--There are stupid questions, so think first.
Jan 17, 2009 - 8:28am

a couple of links to articles about Macquarie:

http://money.cnn.com/2007/09/17/news/international/macquarie_infrastruc…
http://dealbook.blogs.nytimes.com/2007/06/01/weekend-reading-inside-mac…
http://www.breakingviews.com/Home/2007/05/30/Macquarie.aspx?sid=15153
http://www.intelligentinvestor.com.au/articles/comparative-review/Putti…-Macquarie-to-the-Enron-test.cfm?articleID=10003078

I'm not suggesting this stuff is based on any reasonable assumptions and that it's factually true, but it's definitely a good reading if you're considering Macquarie. I am, by the way, a big fan of Macquarie.

Jan 17, 2009 - 8:31am

if you're considering working in australia and australia only...

Jan 17, 2009 - 8:37am

Macquarie IB SA Phone Interview (Originally Posted: 01/29/2013)

I have a first round phone interview scheduled with an associate from Macquarie Capital LA office. Has anyone gone through their first rounds recently and can possibly give me a heads up on what to expect for?

Were they heavy on behavioral? What were the technicals like? Any other noticeable things? Any insight will be deeply appreciated!!!

Jan 17, 2009 - 8:38am

This is for LA office and I'm assuming I'll be interviewed for a generalist pool. Still, would they be asking industry-related questions? What product or industry groups are big in their LA office?

Jan 17, 2009 - 8:40am

Macquarie - What do you consider them to be? (Originally Posted: 07/01/2007)

I always feel Macquarie Bank is kind of unique. I can't quite place what they are.

I think they are a bit small to be even considered middle market yet. They demostrate characteristics of some sort of private equity, in terms of their investments (which they are not). Some sort of a boutique - where they do specialise in niche areas. Yet I think they are too big to be a boutique as well (especially with its size in Australia).

What is your view about this firm in Europe, U.S or Asia? Especially the infrastructures team. If you are offered an analyst job in their IBD infrastructures group, would you take it over a generalist IBD position in something like for example, Deutsche/Citi?

Jan 17, 2009 - 8:44am

Macquarie is a large diversified financial institution with significant investment banking and capital markets presence in the Asia/Pacific and Australia/New Zealand markets. Like many of its European and Asian counterparts (HSBC, Calyon, ABN AMRO, Nomura, etc...) it doesn't have a visible corporate finance or equities franchise in the US, but is probably a very active part of the fixed income and currency markets. To the best of my knowledge Macquarie is one of the top infrastructure (airports, toll roads, etc..) bankers and private equity investors in the world, and you read about them doing infrastructure deals in the US from time-to-time. If you are interested in being an infrastructure banker, probably a very good place, although the brand name lacks the portability of a DB/Citi in the US if you have desires to jump to other industry or product groups in the future. I also recall them having a asian equities sales desk on the west coast to cater to US asset managers.

Jan 17, 2009 - 8:45am

Thanks for that. I am actually more concerned about chances to lateral into Asian BBs. I know their Infra is one of the best, just that if I want to move out of that area next time. Would some possible buy-side PE experience that you get in this group when they make bids help towards a PE exit as well?

Also, what about its recognisibility in top MBA programs in the U.S? I know it has links to INSEAD, but no idea about its recognition in schools like Wharton. Thanks a bunch!

Jan 17, 2009 - 8:47am

A very good firm in terms of pay. If you really want to know EVERYTHING about Macquarie...go get a trial subscription at Breakingviews.com

Macquarie is very famous for its extremely aggressive accounting policies. How else can you generate 20% returns on toll roads/bridges while simultaneously outbidding everyone else? So good firm, but accounting policies are quite fishy

Jan 17, 2009 - 8:48am

Good Infrastructure player and BB in Australia. Nothing more nothing less.

Jan 17, 2009 - 8:55am

Really? I recently heard that Ontario Teachers' fund acquired some ports terminals, outbidding Goldman and Macquarie who didn't seemed to be part of any consortium for that $2.4bn deal... In that case, OTPF would be more of a strategic competitor in my view!

Jan 17, 2009 - 8:57am

I'd consider it low end MM bank. Bonuses have been sub-par (think 8-15k) for the past few years for analysts. However, their infrastructure group and real assets group is stellar (an in-house PE operation). I had a buddy there who hated his first year but managed to lateral to a BB

Jan 17, 2009 - 9:08am

They are big in Australia and just recently getting into/ expanding in the US.

For S&T, the best desks to be on would be commodities.

For IBD, they used to do primarily private equity rather than IBD through their Principle Investments group and their IBD essentially just executed the deals that their internal funds were doing. They have recently been trying to expend their IBD by dividing PI into distinct IBD groups and trying to get third party business. In that vain, they have attempted to hire senior level bankers who were former Lehman or work at other struggling firms.

Jan 17, 2009 - 9:09am

Macquarie NY (Originally Posted: 07/20/2007)

What do people around here think of Macquarie in terms of culture, pay and opportunities? This question has been posed before yet usually doesn't get any real answers. Anyone around here actually work there so they know first hand.

--There are stupid questions, so think first.
  • 1
Jan 17, 2009 - 9:15am
klik50:
Also going along with this, are there opportunities to move to Australia when working for Macquarie?

i think it shouldn't be too hard...

but thinking further... why would you want to work there?

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