Macquarie fund of funds group outsources U.S., Europe advisory work

Macquarie Investment Management, the €196 billion ($268 billion) asset management arm of the Australian banking giant, has hired two firms to advise its private markets group on private equity fund investments in Europe and the U.S. – work that it had formerly done in-house.

The bank made the decision after a strategic review of the business, according to information seen by peHUB. SL Capital Partners will advise Macquarie on European fund investments, while RCP Advisors will advise on U.S. opportunities, according to the information and a person with knowledge of the bank’s plans. Macquarie will continue to own the businesses, the person said.

The advisory work will specifically service three global private equity advisory mandates managed by Macquarie in Australia, which total about €700 million, the person said.

As part of the change in management, Macquarie is shutting down related in-house operations in London and Munich, according to the information, which will lead to some layoffs, though it’s not clear how many. MIM Investment Management’s offices in Australia and Asia will not be affected, according to the information.

Dennis Kaiser, a vice president in the private markets group, recently sent out a ‘friends and family’ email announcing his departure later this month. Merrick McKay, head of European Investments on the private markets team, is transitioning over to SL Capital as part of the changes, the person said.

Also, Brenden Woods, head of real assets within the private markets group, left recently to take a position with StepStone Group. Woods’ departure is unrelated to the strategic changes taking place in the private markets group, the person said, and he has not been replaced.

Macquarie will continue to manage its overall global private equity program – including global fund of funds and direct private equity investing, the person said.

“We believe that incorporating the regional specialist skills of these advisors creates a more compelling value proposition for our clients,” Macquarie said in response to a series of questions.

The private markets group has managed private equity and infrastructure fund of funds since 1996, according to Macquarie’s website.

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