This article is from the Australian Property Journal archive
Global alternative asset manager MA Financial posted record annual fund inflow figures in 2024, to go with strong underlying recurring revenue growth and improved transactional activity.
Among its full-year results was a 14% increase on the prior corresponding period (pcp) in underlying revenue to $306.6 million, supported by growth right across the MA platform, and an underlying EBITDA gain of 7% to $87.1 million.
Some $2.7 billion of total capital was raised, with gross inflows at $2.2 billion, up 27% on FY23, plus an additional $500 million of institutional committed capital.
Assets under management increased 12% to $10.3 billion, and asset management recurring revenue margin increased to 1.61% in the second half, slightly ahead of guidance. Asset management revenue overall was up 8%, driven by strong growth in private credit funds and improved transactional activity in second half.
In October, MA Financial attracted a $490 million investment from global private equity giant Warburg Pincus into its $1 billion Real Estate Credit Vehicle, which said it was moving to “address the persistent funding gap within Australia’s acutely undersupplied residential housing market”.
MA Financial yesterday said it is currently in the advanced stages of finalising commitments for the remaining $500 million in the initial $1 billion target for the raising.
It said it has seen continued strength in 2025 in fund inflows, with an additional $617 million of gross flows, for net inflows of $404 million, achieved in the first seven weeks the year.
The fund inflows include commitments by investors for the upscaled $330 million raising ($290 million net of co-investment by existing MA Funds) for the MA Credit Income Trust which will list on the ASX on 5th March.
Positive momentum across each of the group’s businesses translated into 35% earnings per security (EPS) growth from the first half into the second of 2024.
“We are very pleased with the strong momentum witnessed right across our business in the second half of 2024. Our assets under management and loan books continue to grow rapidly and the transactional environmental is slowly improving after a difficult period,” joint CEOs Julian Biggins and Chris Wyke said.
“Underlying EPS in FY25 is expected to be materially higher than FY24. We believe that the group is in great shape and ready to deliver strong earnings growth into the future.”
MA Financial’s investment into scaling its MA Money division is now adding to underlying net profit after tax, which overall grew 47% to $41.8 million. MA Money’s loan book was up 155% on FY23 to $2.1 billion. The business reached break-even monthly earnings in September and delivered a small profit in 2H24, ahead of expectations, and remains on track to deliver net profit after tax of $15 million to $20 million in FY26.
Corporate advisory fees were up 16% to $50 million, on the back of positive activity levels in M&A and capital solutions work. Equity capital markets activity was subdued, however showed signs of improving momentum late in the year and into early FY25. Equities commissions were up 12% amid improved market conditions in the second half.
“Growing the group’s United States based private credit business together with investment into brand awareness of MA Financial remain important strategic initiatives,” it said.
Its Redcape Hotel Fund has recently acquired three new hotel venues in south-east Queensland, having offloaded The Vauxhall Inn and Wattle Grove Hotel in Sydney in September for $73 million, just a couple of months after selling another three Sydney pubs for a combined $136 million as it sought to boost its balance sheet and allow shareholders to make redemptions.
