Macquarie does private credit its own way
Banks have largely driven the boom in private credit by pulling out of higher risk lending. Macquarie, however, is expanding its bet with highly structured lending to its clients.
Macquarie Group’s decision to wind up its US debt capital markets (DCM) business to increase its focus on private credit is both a sign of the times and evidence of how attuned to market opportunities the 'millionaire factory' is.
It may look like Macquarie is a bit late on the massive private credit bandwagon in the US, but it’s actually a business the group has been in for many years and it is doing it with a particular Macquarie twist.
The US decision will have no implications for Australia, where Macquarie continues to be full service and will basically create bespoke solutions for its clients around whatever they want. The bank has no intention of pulling back from DCM in Australia.
What the US move does reflect is that the group, and Macquarie Capital in particular, is looking to undertake business more directly with clients.
