The Macquarie Group Ltd (ASX: MQG) share price has been performing strongly over the last 6 months, gaining 24.5% over the period. Similar to the big four banks, Macquarie appears to be enjoying the rotation from tech into financials. But there's a lot more going on for Australia's fifth-largest bank.
The Macquarie share price finished the day 0.95% higher, at $149.60 a share.
Macquarie has been busy buying (and trying to buy) more assets. Given the bank's recent performance, it's worth looking at what the bank has been cooking up.
Whatcha gonna do with all that cash?
Being predominantly an investment bank, Macquarie focuses heavily on getting the highest return on its assets. Through both Macquarie infrastructure and real assets (MIRA) and Macquarie investment management (MIM), the investment bank acquires and operates a diversified pool of assets.
From Macquarie's operational briefing in February, MIRA had a total of $25.7 billion of equity ready to deploy. This was after the division had raised $6.6 billion of new equity. With all that capital sitting and waiting for returns, Macquarie is busily searching for opportunities.
Earlier this week Vocus Group Ltd (ASX: VOC) accepted MIRA's $3.5 billion takeover bid for the network solution provider's assets. The Vocus Board has agreed to unanimously recommend that Vocus shareholders vote in favour of the takeover. Both the Macquarie and Vocus share prices lifted on the deal.
On top of that, MIRA is still working on a takeover of Vitalhavest Freehold Trust (ASX: VTH). The investment subsidiary increased its offer today, but no word yet on how it has been received. MIRA is duking it out with Roc Private Equity, another investment firm that finds the berry farm portfolio appealing.
In the event MIRA manages to acquire Vitalharvest, the subsidiary will still have over $18 billion in equity to deploy.
Lifted guidance lifts Macquarie's share price
The Macquarie (MQG) share price got a recent bump after upgrading its full-year guidance in late February. Positively, the bank now forecasts profits to grow, rather than its original expectation of a slight decline.
The release stated Macquarie expects its profits to increase by roughly 5% to 10% for FY2021.
Furthermore, Macquarie advised that it is still maintaining a conservative approach in the current environment. Whether that means Vitalharvest is the last potential acquisition on the radar for FY2021 is uncertain.
