Morgan BellHow MacBank Makes its Millions
December 13th 2006 10:00
Macquarie Bank or the "millionaires’ factory" as it is known is one of the most imaginative and successful business around. Find out in this article how it works and you might end-up investing in it.
The news today, 13 December 2006, is that “a Macquarie Bank European infrastructure fund increased its bid for German electricity and water company Techem by a quarter to E1.36 billion ($2.3 billion) yesterday in response to a rival bid from private equity firm BC Partners.”
“MacBank’s Macquarie European Infrastructure Fund II has also increased its stake in the German company to 27.2 per cent, suggesting that BC will struggle to win the company even if it ups its bid from E44 a share.”
“In Germany, increasing a stake in a company by paying a higher price per share is a signal that a higher bid price is forthcoming.”
This news was published in the online version of The Australian under the title “MacBank ups ante to $2.3bn in German offer” and was written by Robert Clow. Click here to open that page.
Macquarie Bank (ASX: MBL), or the millionaire’s factory as it is known, has its own way of making money.
It typically forms a fund for a particular segment of the economy, such as an infrastructure fund investing in freeways, and then buys assets in Australia and around the world using considerable leverage. This generally allows it to be more successful than its competitors at buying assets.
In the next stage Macquarie Bank sells those assets in unit form to retail investors, effectively transferring the risk inherent in the business to them. Given the high cash flow characteristics of most MBL’s assets, investors benefit from regular dividends, which make these investments attractive.
Finally, Macquarie Bank continues its association with the investment by remaining its manager. On this purpose it charges high management and other fees, which, in a word, make its fortune.
It’s a formula that works well with MBL. Some of its funds are: Mac Airports, Mac Communications, Mac Infrastructure Group, Mac Power Income Fund, Macquarie Media Group, Macquarie ContryWide and a host of others.
MBL’s EPS grew in the last six years by a compound 22.4 per cent per year to 382.3 cents. Its Net Profit is $916 million.
MBL has assets of $95.233 billion and 80.2 per cent of them earn interest.
Its Return on Equity is 22.4 per cent and P/E is 19.3 per cent being its share price $73.75.
These figures are based on data available at money.ninemsn.com.au.
Macquarie Bank’s 10 year price chart, not surprisingly, looks like constantly aiming for the skies and forms a perfect ascending diagonal typical of a growth business.
End
The news today, 13 December 2006, is that “a Macquarie Bank European infrastructure fund increased its bid for German electricity and water company Techem by a quarter to E1.36 billion ($2.3 billion) yesterday in response to a rival bid from private equity firm BC Partners.”
“MacBank’s Macquarie European Infrastructure Fund II has also increased its stake in the German company to 27.2 per cent, suggesting that BC will struggle to win the company even if it ups its bid from E44 a share.”
“In Germany, increasing a stake in a company by paying a higher price per share is a signal that a higher bid price is forthcoming.”
This news was published in the online version of The Australian under the title “MacBank ups ante to $2.3bn in German offer” and was written by Robert Clow. Click here to open that page.
Macquarie Bank (ASX: MBL), or the millionaire’s factory as it is known, has its own way of making money.
It typically forms a fund for a particular segment of the economy, such as an infrastructure fund investing in freeways, and then buys assets in Australia and around the world using considerable leverage. This generally allows it to be more successful than its competitors at buying assets.
In the next stage Macquarie Bank sells those assets in unit form to retail investors, effectively transferring the risk inherent in the business to them. Given the high cash flow characteristics of most MBL’s assets, investors benefit from regular dividends, which make these investments attractive.
Finally, Macquarie Bank continues its association with the investment by remaining its manager. On this purpose it charges high management and other fees, which, in a word, make its fortune.
It’s a formula that works well with MBL. Some of its funds are: Mac Airports, Mac Communications, Mac Infrastructure Group, Mac Power Income Fund, Macquarie Media Group, Macquarie ContryWide and a host of others.
MBL’s EPS grew in the last six years by a compound 22.4 per cent per year to 382.3 cents. Its Net Profit is $916 million.
MBL has assets of $95.233 billion and 80.2 per cent of them earn interest.
Its Return on Equity is 22.4 per cent and P/E is 19.3 per cent being its share price $73.75.
These figures are based on data available at money.ninemsn.com.au.
Macquarie Bank’s 10 year price chart, not surprisingly, looks like constantly aiming for the skies and forms a perfect ascending diagonal typical of a growth business.
End
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