Macquarie Group, Ltd. · ASX:MQG
Macquarie — Investor Presentation (2016)
12 slides from Macquarie's investor presentation, 2016
Slide 1: CAF Lending
04 CAF Lending Ben Brazil, Group Co-Head
Slide 2: Business description
Business description • Deployment of capital and funding, primarily into the credit space • For ‘direct’ return for risk purposes with a hold to Direct loan Primary maturity horizon • Flexible/diverse in relation to: ‒ Origination source – primary/secondary, CAF Lending Borrower Purchase Loan Direct
Slide 3: Business positioning – geography
Business positioning – geography Portfolio size $A10.1b1 A EMEA DEC 15 AMERICAS 38 staff A 44 staff 3.0 2.3 1.9 1.6 1.0 A AUSTRALIA Corporate Real Corporate 0.3 Real 32 staff Corporate Real estate estate estate 1. Funded loan portfolio shown which excludes current committed but unfunded balances, an
Slide 4: Evolution of business
Evolution of business $Am L+2500 14,000 Capability at inception focused on primary and secondary loans 12,000 L+2000 10,000 “Unitranche” Residential primary mortgages Credit spreads L+1500 Book Size 8,000 Expansion of Defaulted US / Europe debt (as at Infrastructure 6,000 L+1000 real estate acquisit
Slide 5: Portfolio composition since inception
Portfolio composition since inception Origination Channel Sector Facility type Defaulted (as at Retail/Mortgages1 Equity acquisition) Mortgages Junior Real Estate Senior Unsecured Primary Secondary Corporate Senior Secured 1. Includes residential mortgages and student loans. Comprising 558 individua
Slide 6: Primary senior: Realised and Current Portfolio
Primary senior Example Borrowers Current Portfolio $A4.5b Education Airport Services Hotels Average Realised realised $A9.1b spread of 6.5% Software Healthcare Cable Infrastructure Deployed Since Inception Healthcare Chemicals Manufacturing Rental Cars Current portfolio shows currently funded balanc
Slide 7: Secondary senior: Realised and Current Portfolio
Secondary senior Current Portfolio Example Borrowers $A3.8b Industrial Cold Storage Utilities Motorway Services Realised Average $A12.7b realised spread of 8.6% Transport Infrastructure Motorway Services Motorway Services Deployed Since Inception Waste Management Current portfolio shows currently fu
Slide 8: Junior: Current Portfolio and Realised
Junior Example Borrowers Current Portfolio $A1.2b Motorway Services Infrastructure Bulk Liquids Terminal Realised Average $A0.7b realised spread of 11.4% Multifamily Housing Marine Chassis Leasing General Aviation FBO Deployed Since Inception Current portfolio shows currently funded balance (exclude
Slide 9: Equity / Equity-like: Realised and Current Portfolio
Equity / Equity-like1 1. Includes debt which was in default at acquisition Infrastructure Sector Date Region Invested ($Am)2 Realised Dec 12, Sep 14 Australia 251 24% average realised Mar 14 US 168 spread3 Aug 13, Jun 15 Europe 33 Jun 14 – Jun 15 Europe 15 Current Portfolio Unrealised Jun 15 Europe
Slide 10: Case Studies
Case Studies Energetics UK Tank & Rast Germany • Between 2013 and 2015, CAF Lending provided • In Jun 09 and Mar 11, CAF Lending acquired €143m of financing to, and ultimately acquired a controlling senior loans in Tank & Rast, the landlord of c. 90% of interest in Energetics, the UK “last mile” ele
Slide 11: Risk management and risk culture
Risk management and risk culture • Risk, fully compensated by return, is our only business • Conducted within the disciplines of a risk management framework and according to the limits of risk acceptance − Risk is “owned” and managed by the business, independent review by RMG Credit Risk Equity Risk
Slide 12: Risk management and risk culture
Risk management and risk culture Alignment and culture are the foundations of our Risk performance has been very sound risk management strategy Profits and impairments since inception Alignment Culture ‘In place’ portfolio has Senior team members inherent profits average 8 years with Team/business i