Macquarie to offer debt to fund mergers and succession planning
Macquarie Bank is entering the UK business lending market with the launch of specialist services for UK insurance brokers, including lending solutions to finance merger, acquisition and succession planning activities.
Macquarie has been providing specialist lending services to insurance brokers and other professional service industries in Australia for almost 20 years. The launch of these services in the UK reflects a broader strategy of entering new markets where there is an opportunity to create value for clients, it said.
Executive Director Peter Jones, Head of Macquarie Relationship Banking, said: "The UK insurance broking market is undergoing major consolidation which means many brokers will require finance to facilitate this process."
"Whether it be acquiring another broking practice, buying out partners, refinancing borrowings or buying new premises, our flexible lending solutions can help brokers achieve their goals."
The loans offered by Macquarie are tailored specifically to the needs of insurance brokers enabling them to borrow against the recurring value of their business as well as against residential and commercial property. This can provide potentially higher levels of borrowing on flexible terms, the bank said.
Macquarie will also provide finance for the acquisition of commercial and 'buy-to-let' residential property by brokers.
"We are able to quantify and lend against the value of a broker's fee income enabling them to unlock the value they have built up in their business. Importantly, this may enable brokers to avoid having to borrow against the value of their family home," said Peter.
The London-based team will be headed up by Associate Director Aden Nguyen.
Following the announcement, Nguyen said: "We believe brokers will welcome our strong industry knowledge and specialist lending solutions. We are proud of our partnership approach which provides each client with a dedicated relationship manager who knows the ins and outs of their business and works with them to assist them grow their business and their personal wealth."
In addition to goodwill lending, Macquarie also helps insurance brokers in Australia with succession planning strategies, property acquisition finance, deposit facilities, premium funding and payment collection and reconciliation services.
