Latest news with #BenWay
The Guardian
29-04-2025
- Business
- The Guardian
Macquarie ‘very proud' of Thames Water ownership despite loading it with debt
The investment bank that sold Thames Water in 2017 after loading the company with debt has said that it is 'very proud' of its record, even as the water utility teeters on the verge of collapse. Australia-headquartered Macquarie led a consortium that owned Thames Water from 2006 until 2017. Macquarie has been criticised by some politicians and analysts for its control of the business, accusing the bank of setting it on course for financial collapse. Thames Water supplies water and sewerage services to 16 million customers in London and south-east England. However, it has reached the edge of collapse after debts rose to near £20bn, and it last month won court approval for £3bn in emergency funding. Macquarie's critics argue that the investment bank set Thames Water on the course to ruin. Debt at the utility rose from £3.4bn when Macquarie bought in to £10.8bn when it sold its last stake in 2017. At the same time, Macquarie and other investors received dividends worth £2.8bn. Ben Way, the group head of Macquarie Asset Management, last month told investors on a call that Thames Water had improved under its ownership. 'We're actually proud, very proud of our ownership of Thames Water,' Way said. 'It was a much better business, imperfect, but much better business after our stewardship, and we can't talk about what happened subsequently.' Way, who has worked for Macquarie since 2006, denied any link between Thames Water's more recent financial struggles and the bank's ownership, according to a transcript hosted by the data company AlphaSense. The Financial Times first reported on the comments. 'So imagine being blamed for a house that you own seven years ago when the roof leaked,' he said. 'It is quite strange.' Despite the £3bn debt package, Thames Water still has to secure longer-term equity investment in order to fund upgrades to sewer and water treatment works after decades of underinvestment. Thames has chosen KKR, a US private equity investor, as its 'preferred partner'. The New York-based company is expected to acquire a stake in Thames worth £4bn. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Macquarie is now the biggest shareholder in Southern Water, another utility under financial pressure. Way said Macquarie had not faced a backlash from government over its record on Thames. 'What I would say is that Thames Water is a very good example of ability to have the courage of your convictions and look beyond the media drama or noise,' Way said. 'Because the fact of the matter is, no regulator in the UK in the last 10 years has looked at Macquarie other than as a very positive owner of assets.'
Yahoo
22-04-2025
- Business
- Yahoo
Macquarie to sell North America-Europe public investments business to Nomura
Macquarie Asset Management (MAM), part of Macquarie Group, has agreed to divest its North American and European public investments business to Japan's Nomura in an all-cash deal valued at around $A2.8bn ($1.8bn). The public investments business includes equities, fixed income, and multi-asset strategies, managing almost $A285bn ($182.8bn) in assets. This acquisition encompasses all assets, teams, offices, and the operating platform. The business, headquartered in Philadelphia, employs more than 700 individuals. It will remain under the leadership of its current management team during the transition and into the new ownership phase with Nomura. MAM will retain its public investments operations in Australia. As part of the agreement, MAM and Nomura will collaborate on product and distribution opportunities. Nomura will serve as a US wealth distribution partner for MAM, facilitating continued access for US wealth clients to MAM's alternative investment capabilities. Furthermore, Nomura has pledged to provide seed capital for a variety of MAM alternative funds designed for US wealth clients, building on the recent success of the Nomura Macquarie Private Infrastructure Fund launched in Japan earlier this year. MAM head Ben Way said: 'We are pleased that Nomura will carry it forward into a new phase of growth in North America and Europe. We are also excited to further strengthen our collaboration with Nomura, creating benefits for our respective clients.' This acquisition is expected to enhance Nomura's global capabilities and client footprint of its investment management division, which manages around $590bn in client assets. Upon completion of the transaction, Nomura's Investment Management franchise is projected to manage around $770bn, with over 35% of assets managed on behalf of clients outside Japan. The acquisition will also establish a scaled hub in Philadelphia to further develop Nomura's international investment management business. Nomura president and Group CEO Kentaro Okuda said: 'This acquisition will align with our 2030 global growth and diversification ambitions to invest in stable, high margin businesses.' The deal awaits standard closing conditions including regulatory approvals, with completion anticipated by the end of 2025. Meanwhile, in January this year, Nomura appointed Sudhir Nemali as managing director and COO of its international wealth management division, according to an internal memo reported by Reuters. "Macquarie to sell North America-Europe public investments business to Nomura" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
