Macquarie Capital

Macquarie Capital undertakes wholesale structuring, financing, advisory and underwriting in Australasia and select international markets. Macquarie Capital has over 3,000 staff located in 25 countries including Australia, Austria, Canada, China, France, Germany, Hong Kong, India, Indonesia, Ireland, Japan, Malaysia, Netherlands, New Zealand, Philippines, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, UAE, UK and US. Macquarie Capital contributed to over 60% of Macquarie’s total earnings based on the full year results to March 31, 2008.

Macquarie Capital is comprised of three Divisions – Macquarie Capital Advisers, Macquarie Capital Products, and Macquarie Capital Finance.

Macquarie Capital Advisers provides advisory and capital raising services to corporate and government clients involved in public mergers and acquisitions (M&A), private treaty acquisitions and divestments, fund raising and corporate restructuring. In 2006, Macquarie’s M&A team advised on over $A40 billion of successfully completed transactions, achieving the No.1 ranking in Australia according to Thomson Financial. Activities are aligned to industry groups reflecting key areas of expertise in: Infrastructure; Resources; Telecommunications, Media, Entertainment and Technology (TMeT); Property; Industrials and Financial Institutions. Specialist product groups include: Equity Capital Markets; Unlisted Equity; Debt Structuring and Principal Transactions. Transaction teams are drawn from both industry and product group specialists depending on the needs of the client.

Macquarie Capital Advisers manages a range of specialist funds which continues to be an important part of Macquarie Capital’s strategy. The ability to source and acquire unique assets has resulted in the development of a number of specialist funds globally and increasingly new fund mandates are broadening beyond traditional infrastructure. Macquarie Capital now has listed and un-listed funds in Australia, Asia, US, Canada, UK, Europe and South Africa, including:

• Macquarie Infrastructure Group (MIG) – an ASX listed fund investing in toll roads in OECD countries including the Chicago Skyway, Dulles Greenway, South Bay Expressway and Indiana Toll Road in the US, Highway 407 in Canada, M6 Toll in the UK and the Autoroutes Paris-Rhin-Rhone motorway in France.
• Macquarie Airports (MAP) – an ASX listed fund investing in international airports. Currently hold interest in Bristol, Birmingham, Brussels, Copenhagen, Sydney and Rome airports
• Macquarie Korea Infrastructure Fund (MKIF) – jointly managed with Shinhan Financial Group and dually listed on the Korea Exchange and London Stock Exchange, the fund invests predominantly in South Korean toll roads and tunnels. Investments include the Incheon Grand Bridge, Cheonan-Nonsan Expressway and Gwangju 2nd Beltway, Section 1.
• Macquarie Infrastructure Company (MIC) – a New York Stock Exchange listed entity investing in a diversified group of infrastructure businesses in the US.
• Macquarie European Infrastructure Funds I and II – invest in European infrastructure assets. Investments include utilities (Thames Water), airports, rail, roads, renewable energy generation and ferry operations.

Macquarie Capital Products brings together the structured finance areas of Macquarie Capital, advising and participating in corporate and project financing transactions where there is a wide range of structuring and accounting issues. The Division uses its technical skills to provide a key competitive advantage in these transactions. The Division also manufactures and distributes a number of retail financial products including the Fusion and Fortress Funds, Australian Forestry product, infrastructure bonds and loan funds and specialised equity in the US.

Macquarie Capital Finance is a leading financial services provider to the corporate, professional and government sectors in Australia, creating tailored financial solutions using Macquarie’s balance sheet. At 31 March 2006, the Division’s portfolio of loans and leases exceeded $A4.5 billion across a range of different industries in select international markets. Macquarie provides finance, leasing, trading, sourcing and remarketing services in industries where it has specialist skills and experience. These industries include information technology, electronics manufacturing, motor vehicles, plant and equipment, telecommunications, aviation engines, transportation, vendor financing and utility meters.