Macquarie buys UK investment bank for $4bn

A Macquarie-led consortium will acquire a UK investment bank for £2.3 billion ($3.9 billion) and merge it with its existing UK infrastructure business.

Macquarie, along with the Universities Superannuation Scheme (USS), purchased the Green Investment Bank from the UK government under a special share arrangement where five independent trustees will ensure Macquarie preserves the bank's green energy focus.

Macquarie said that upon the acquisition's completion, the Green Investment Bank will oversee about $7 billion in green infrastructure assets, and will become Macquarie's primary vehicle for green infrastructure projects in the region. Three new investment vehicles - focusing on offshore wind, low carbon lending and green infrastructure - will also be established.

As mentioned, Macquarie's existing UK green energy business will be merged into the bank. The group will maintain Green Investment Bank's brand and Edinburgh offices as well as a "substantial staff presence in the city."

Investors in the bank will include Macquarie European Infrastructure Fund 5, USS, GCP Infrastructure and the UK government.

Macquarie Capital's European head Daniel Wong said: "It is a privilege to be selected by HM Government to acquire the Green Investment Bank. The Green Investment Bank is a pioneering business, with outstanding people, expertise, credentials, brand and networks."

"By combining the Green Investment Bank with the largest infrastructure investor in the world, we will create a market leading platform dedicated to investment in the low carbon economy in the UK and beyond. We understand the responsibilities that come with this ownership, and we are fully committed to maintaining its green purpose as we grow the business," Wong said.

Subject to regulatory approval, Macquarie will finalise the acquisition in the first half of this year.

Read more: UKGreen Investment BankUSSMacquarie European Infrastructure FundDaniel WongEdinburghGCP InfrastructureHM GovernmentMacquarie CapitalUniversities Superannuation Scheme
Editor's Choice
AMP Capital has appointed a new head of its institutional and corporate business.
AustralianSuper appointed a new chair for its investment committee.
A Rainmaker study of extra benefits and features being offered by super funds in Australia reveals that technology and communication-oriented features are the most active area of product development.
An $81 billion international investment manager took the majority stake in a large Australian provider of specialist medical software.
Brought to you by
19 APR 2017
There are two main avenues for investors to think about when approaching the use of alternative beta in an investment portfolio. The first is to adopt a core/satellite approach to constructing an alternatives ...
Get it Daily
Keep up to date, don't be the last to know! Get the Financial Standard Daily Newsletter.
Pocket investment guides featuring adviser case studies and a glossary.
Investing trends and strategies from the industry’s thought leaders.
Putting the spotlight on investment products that matter.
Expert Feed
Andy Marshall
Rethinking client engagement
Financial advisers who take the time to understand their clients' personality, emotional intelligence and learning styles stand a better ...
Stephen Fay
Landscape changes with potential for super implosion
Changes to default superannuation outlined by the recent Productivity Commission report have potential to fundamentally alter the landscape ...
Christopher Page
Redefining the family office
While the family office model has traditionally been the preserve of the ultra-rich, this may be changing very soon. Last week, Findex ...
Michelle Baltazar
Hitting the mark
Ten years from now, every financial adviser in the country will be offering their client a managed account solution. It may happen ...
Featured Profile
Professional Subscription for $295
(inc GST) for 1 year.
FS Advice
The Australian Journal of Financial Planning.
Get the free iPad app
Download the Financial Standard iPad app for FREE.
Link to something z4Ys1Vvg