Macquarie Capital

Hello,
Could anyone offers some insights into Macquarie Capital, some pros about the company, some company specific things (i.e. corporate culture) that perhaps it does differently than its competitors. I know that Macquarie is a MM firm, and is big on restructuring. Tried doing some research, but can't really coming up with anything concrete.

Any input would be greatly appreciated.

Thanks fellow monkeys!!

Working at Macquarie Capital

Macquire Capital is mostly considered a middle market. The banks reputation has shifted somewhat through the years. Here are some thoughts form some certified users on the firms reputation both locally in the US and abroad.

from certified user snakeplissken

in the US it's still a perfectly good name. i've never worked there, but i had a couple friends that have, and for some reason i kept hearing how "cheap" Macquarie is. i think they mean in relation to their bonuses vs. other bonuses on the street, as well as their budgets for taking clients out, but im not 100% sure. still a perfectly good name and you'll get good experience.

from certified user kalga

Great in Australia/Asia. Not bad in the USA. Terrible to work with/for in Canada. No clue about the other regions.

from certified user RonaldBacon

don't know much about them, but I would probably say on the lower end of the middle market firms in the US. but Macquarie is still a solid shop with a brand name that will open doors for you.

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Comments (83)

 
Sep 24, 2010 - 5:21pm

Not "big" on restructuring; they do have a pretty decent Restructuring group, does some creditor-side work.

They are BIG in Infrastructure: they advise, they invest, they co-invest, etc. That is their bread-and-butter business, no matter how hard they're trying to branch out. Industrials has good deal flow too, with a lot of the companies they bank being infra-related and thus have prior dealings with/see future cross-selling potential.

I interned there this past summer. Culture was pretty good - no real douches, people didn't take themselves tooo toooo seriously, and bankers there were generally sociable and fun. That being said, morale was sort of low due to low bonuses the last couple of years, and many people are unhappy. However, if it can turn a new leaf, re-group, figure out some issues, it has all the resources to become a prime player in the ultra-competitive MM.

I know they are also huge in Asia (recently were on the AgBank IPO) and London. Australia they are BB-status, but have lost out on some big mandates recently.

 
Oct 17, 2010 - 6:01pm

Macquarie has had a hard time keeping good employees and an even harder time hiring qualified analysts and associates. Getting a job there shouldn't be a problem for anyone with average or above qualifications. Just don't expect pay at the same level of its competitors but you should expect to work the 70-100+ hour weeks.


“Whatever you do, don’t be a victim. If you’re in a bad situation, try to fix it. If you can’t fix it, move on. Don’t whine.” --Jack Welch
 
Oct 17, 2010 - 11:37pm

dec-jun-jun:
In Sydney they call Macquarie "Millionaire's Bank" because of the large bonuses they use to pay out (before the financial crisis) but i am sure that these numbers would be still be very mute compared to the bonuses that were paid out by wall street BB's.

If you want to work in Sydney, the Macquarie office in Martin Place is the place to be.

Maybe 5 years ago but definitely not today, and most of their cachet was underpinned by their infrastructure business which has become redundant following the demise of cheap debt and unfavourable press. They've also lost out on a string of high profile deals and are losing staff left, right and centre. I think it simply comes down to the fact that Nick Moore has nothing on his predecessor Allan Moss and the market is clearly factoring this into the share price. If you want the top dogs in APAC then it is GS and JPM. GS's defence mandate on the Healthscope bid has done wonders for their reputation with them securing similar defence roles on the BHP / Potash deal, and more recently, KKR's bid for Perpetual.

 
Oct 17, 2010 - 6:37pm

Did SA there and signed for FT. Not Infra. In NYC.

The last 2 years, bonuses have been low (think low teens for 1st year analysts) and thus many people have left. Was there this past summer when 5-7 people left the NY office alone. However, it was not a mass exodus, and they replaced those people almost immediately.

The culture is very flat and entrepreneurial, and depending on group, hours/people aren't too bad. Industrials and TMT probably worked the longest hours, ranging from 80-100. Also, Sponsors worked a ton because 3 people left the group and the others had to pick up the slack for ~ summertime as spots were filled. Word is have already re-hired. Product groups worked 65-80, depending on deal flow.

Also, analyst program isn't typical 2-year stint, and promotions can be pretty quick (analyst to assoc after 2-2.5 years on the regular). Only MD in my group had MBA; rest were there through analyst years.

Advisory has been a bumpy transition given the firm's quasi-PE roots, although deal flow - especially in infra and FIG - is pretty jammed. Hopefully fees will follow. Expansion of DCM/LevFin has been noteworthy over the last 6-12 mos. with addition of Steve Mehos from Lehman/BarCap and Kevin Smith from CS.

Bottom line, there have been growing pains for sure, but the mood is upbeat, and with the LevFin platform expanding pretty rapidly, it should be an interesting next few months/years. Agree that staff retention, and bonuses, will be key, so we will see what happens.

 
May 13, 2011 - 1:17pm

Have a friend who works there. Apparently numbers are pretty bad - enough so that they caused him to look and find a job elsewhere. How do they retain talent over there?

Regardless, to the OP's question. I've met some people there through my buddy. They all seemed pretty cool and down to earth. My friend did mention that there have been some "turf wars" that have spawned some internal politics/conflict, but that can be said for any place.

Also, from what I know, they're best known as infrastructure investors and everything else has grown out of that.

 
May 13, 2011 - 1:18pm

Groups within Macquarie Capital (Sydney) (Originally Posted: 12/04/2007)

I'm looking for some advice on choosing an industry/product group at Macquarie in Sydney. I need to choose my top 3 preferences from the following:

Macquarie Capital Products (previously known as the Financial Products Division)
Private Placements Group (previously known as the Unlisted Equity Group)
Macquarie Capital Funds (the team that manages Macquarie's specialised funds)
Debt Structuring Division
Infrastructure Advisory
Resources Industry Group
Industrials Industry Group
Property Industry Group
Equity Capital Markets
Financial Institutions Group
Telecommunications, Media, Entertainment and Technology Industry Group

I'm mainly interested in the M&A/advisory side of the business (ie. not too interested in Debt/Equity or funds). I've heard that infrastructure isn't as strong within Australia as overseas, and that industrials is pretty strong right now (as in, it does a lot of the bigger deals), and would like more advice regarding this. I'm also personally interested in TMET.

Also it would be fantastic if anyone has any insight on what Macquarie Capital Products (is this a structured finance group?) and the Private Placements Group do. Thanks in advance.

 
May 13, 2011 - 1:20pm

Macquarie Energy Capital (Originally Posted: 02/28/2010)

Hi guys,

Just wondering if anyone knew more info regarding Macquarie Energy Capital? From my understanding, they provide mezz funding for oil/gas companies... but I don't know much more than that.

What would be the exit ops for a group like this? Are there any other comparable groups on the street? Any info at all is much appreciated.

 
May 13, 2011 - 1:33pm

What do you think of Macquarie Capital? (Originally Posted: 01/06/2011)

Hi, I'm from the Philippines and am graduating this March (undergraduate degree). I had my internship as a research assistant in the Equity Research division of a JPMorgan Chase and I have decided to jump start my career in investment banking. I am now in contact with someone in Macquarie Capital and I think the vacancy is in corporate finance (which I think is what investment banking is all about). In line with this, what do you think of Macquarie Capital and how does it compare to top dogs such as JPMorgan, Credit Suisse, Deutsche?

Thanks in advance!
d

 
May 13, 2011 - 1:53pm

Macquarie Capital - Hong Kong (Originally Posted: 02/07/2014)

Wonder if anyone can comment on Macquarie Capital (banking/principal investments) in Hong Kong in terms of its business performance and working culture/hours for senior asso/VP? There seem to be many negative reviews of MacCap here but most of them were about the US/Europe, so I wonder anyone who has experiences in Asia/HK with MacCap can share some thoughts? Thanks very much in advance!

 
Jul 30, 2017 - 2:18pm

Macquarie Capital - Hong Kong (Originally Posted: 02/07/2014)

Wonder if anyone can comment on Macquarie Capital (banking/principal investments) in Hong Kong in terms of its business performance and working culture/hours for senior asso/VP? There seem to be many negative reviews of MacCap here but most of them were about the US/Europe, so I wonder anyone who has experiences in Asia/HK with MacCap can share some thoughts? Thanks very much in advance!

 
Jul 30, 2017 - 2:20pm

Right now I'm thinking of either Infrastructure or TMET. The way it works is I indicate my preference at the end of training, and from what the people that interviewed me (plus a few other analysts) have told me, 90% of people get their first choice.

Any advice would be very appreciated, thanks.

 
Jul 30, 2017 - 2:21pm

Industrials is where you wanna be. Infrastructure is strong abroad but no longer in Sydney where not many more infrastructure deals are to be had.

All recent high profile deals - Qantas/Coles/Boart/Dyno - were run out of the industrial team. Head of industrials, Tim Bishop, is a rising star and seen by many as possibly the next head of IB

 
Jul 30, 2017 - 2:22pm

I have the same question as Zandranius but for the London office...does anyone have any thoughts? I was thinking about utilities or airports..

 
Funniest
Aug 5, 2018 - 2:43pm

Here's my $0.02:

REPUTATION: If you can get in at the infrastructure and energy group, it's best-in-class. Macquarie basically invented modern infrastructure investing and their models are beyond anything I've ever seen. They've done some super high-profile and innovative investments recently, especially in the clean energy and infrastructure technology spaces. Internal marketing makes it very clear they want to be top adviser / investor in the world for clean energy (and may already hold that spot).

GO BUYSIDE: As an additional plus, instead of doing grunt advisory work, about 75% of the work is principal investing. For a 22 year old to be able to go straight into buyside is reason enough to go. Comp is above street at the associate level; middle of the road of analysts.

IF I HAD TO NAME A DOWNSIDE: It seems basically impossible to rise above MD unless you spend time in Sydney HQ. Also, their vest-game is weak - some older guys have patagonia vests but all of the new vests are some offbrand crap that feels flimsy.

 
Most Helpful
Sep 26, 2018 - 11:08pm

Offering some updated info as a recent former IB Analyst as MacCap (only speaking for NYC):

BUSINESS: Overall, the business has been killing it. The LevFin business has been doing well and generating a good amount of fees, especially in coordination with the TMT group. Reputation in the FIG space is also very good and rising, especially given the Specialty Finance team is best in class. Aerospace & Defense team also had a huge win this year with the General Dynamics / CSRA deal which is a huge outcome given they are a relatively new group. Additionally, Sam Shah and the business services group are arguably the best on the street at what they do.

One area that I think has really shifted from public perception is the IB Infra group. Traditionally, this is the area that Macquarie is known for (and still is through MIRA), but the IB business, in my opinion, has really fallen. A lot of the good senior guys have left to various infra funds ( Will Demas -> CIP, Mike Allison -> Stonepeak) leaving a hole where people who are left don't really have the proper relationships or right mindset to succeed. There has also been a shift away from the advisory business in Infra to focusing on principal investments, especially in the renewables space. Note MacCap acquired the Green Investment Bank a year or two back and have been trying to push into green energy using that brand. With that, MacCap infra is almost trying to act like a PE fund, but with the mentality and cost of capital of a bank, making it hard for them to compete. Overall, there has been a shift away from advisory (you'll see that they've done very few infra M&A deals in the past 2 years) into a space where they aren't equipped to compete.

LIFESTYLE: Great compared to street average. I would probably get home at 11 on average as a first year and second year 9-10. Obviously have had the 2-3am nights, but only a couple times a month. Worked a couple hours on Sundays maybe every other week.

COMPENSATION: I would say at this point its middle of the street. Obviously not competing with the boutiques, but for other MM and the BBs, comp is competitive for analysts (some would argue trending to lower middle, but better than historically). That may or may not be the case bonus wise for associate, I'm not too sure, but associate base is higher than street.

CULTURE: Relatively laid back with little face time, but overall very group dependent on the level of intensity. What I mean by that is, overall, the culture is laid back compared to the street, no one rings you out for making small mistakes or being 5 minutes late to a meeting. However, some groups will give juniors more responsibility and ownership over deals, creating stronger morale amongst the juniors and motivation. This is most apparent on the non-infra side of things where deal flow is strong and senior guys need the juniors to step-up. On the infra side, all the senior guys are scrambling to get something done because deal flow has not been strong and everyone is trying to be a principal investor when they are supposed to be bankers. This leads to a lot of inefficiencies that fall on the juniors and often feels like they are working towards nothing. Retention has been an issue in the group with a lot of leavers before analyst years are up.

EXITS: Pretty decent. Have seen guys go to well-known PE funds or lateral to better banks. If you're in infra, the infra funds soak up junior talent like sponges (although infra isn't doing deals, legacy expertise is great in terms of modeling training). If you find you don't like finance, lots of tech companies are also starting to soak up IB talent. Also, if you like it at MacCap, there's no capped 2-year analyst program like at other banks, you basically just keep on going for the most part until VP - then its up to your ability to bring in business.

 
Sep 26, 2018 - 11:32pm

MacCap is amazing in Sydney. The only downside I could think of without giving too much away is that there has been a history of high staff turnover.

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