Macquarie Capital update shows deals are back

Macquarie said in its short-term outlook statement that transaction activity was expected to be significantly up this financial year. Picture: Britta Campion

Macquarie Capital’s first-quarter update backed up what is being seen across the broader market – that dealmaking is coming back to life.

Macquarie said in its short-term outlook statement that transaction activity was expected to be significantly up this financial year on what had been a challenging year for its investment banking arm, Macquarie Capital.

Investment-related income was also expected to be higher, with increased revenue from asset realisations, predominantly in the second half of the 2025 financial year, and the continued growth of the private credit portfolio.

Macquarie Capital contributed $1.051bn net profit for the 2024 financial year, up 31 per cent on fiscal 2023 and accounting for about 16 per cent of Macquarie’s overall profit contribution.

It maintained its leading market position in Australia and New Zealand across mergers and acquisitions and capital markets for the 2024 financial year, advising on deals during the year such as the $2.1bn acquisition of United Malt by Malteries Soufflet and OZ Minerals on the $9.8bn buyout of the business by BHP.

It has a private credit portfolio worth more than $21.5bn, with more than $4.5bn deployed during the year. Over the medium term it plans to drive earnings through co-investments.

LSEG’s s Global Mergers and Acquisitions Review for the first half of 2024 shows that the value of mergers and acquisitions globally was up 18 per cent at $US1.5 trillion ($2.3 trillion), despite the number of deals falling 25 per cent.