MA Financial prospers from James Packer’s Crown Resorts interests

Billionaire James Packer hired MA Financial for advice over Blackstone’s buyout of Crown Resorts. Picture: Scott Barbour/Getty Images

MA Financial’s role assisting James Packer in Blackstone’s $8.9bn buyout of Crown Resorts helped propel the group’s advisory fees to record levels for the six months to June.

The firm previously known as Moelis capitalised on an upswing in mergers and acquisitions activity across the market that came amid a low interest rate environment brought on by the global pandemic.

It offered advice to Mr Packer’s Consolidated Press Holdings, a 37 per cent shareholder in Crown.

MA Financial made a record $27.8m in advisory fees.

It generated $6.7 million in earnings before interest, tax, depreciation and amortisation for the six months to June from corporate advisory and equities, up 3 per cent on the previous corresponding period.

While delivering its results for the six months to June, MA Financial said that challenging market conditions meant there was little equity capital markets activity.

MA Financial said that following a positive start to the second half of the 2022 financial year and a solid transaction pipeline for the remainder of 2022, the business remained on track to be within its targeted annual range of $1.1m to $1.3m of revenue per advisory executive for the year, subject to market volatility and completion rates.

“The group will continue to develop and grow the division, but will remain selective in its approach to hiring, always paying regard to its revenue per head target range and the consistency of earnings productivity in the business over the long-term.

The group lifted investment banking earnings as it posted a 43.4 per cent lift in net profit for the half year to $20.5m, with 69 per cent of its earnings coming from asset management.