MA Financial logs record fund flows as revenue slides
MA Financial’s asset management business logged a record $1.26 billion of inflows in the first half, but firm-wide revenue still fell 12 per cent with its investment banking hamstrung by a lack of deal making.
Revenue for the 2023 calendar year dropped to $128.3 million, the company said. While revenue at its asset management arm fell 12 percent, investment banking slumped 27 per cent as higher borrowing costs tempered appetite for mergers and acquisitions.
(L-R): MA Financial’s joint chief executives Chris Wyke and Julian Biggins. Renee Nowytarger
The company – formerly a joint venture with Ken Moelis’ New York-based investment bank – saw its asset management division contribute about 80 per cent to the first-half earnings.
Asset management’s heavy contribution cements MA as an investment manager from its early years as a boutique investment bank, despite revenue for the unit falling to $84.8 million. Revenue for its corporate advisory and equities business slumped to $22.2 million, while its lending and technology unit posted a 12 per cent jump to $20.8 million.
Wall Street veteran Ken Moelis said the Australian advisory and equities business had “performed well given the challenging environment that’s impacted investment banking revenues in key markets”.
“It’s pleasing to see green shoots in M&A as Australian companies start to have greater convictions about the direction of interest rates,” he added.
MA is working on a potential initial public offering for childcare business Nido Early School, and is advising restaurant QR code operator Mr Yum on a possible tie-up with peer me&u.
Elsewhere, recurring revenue climbed 22 per cent from the first half of 2022 to $178 million, thanks mainly to growth in MA’s private
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