Competing in Global Niche Markets: The Case of Macquarie Bank
20 Pages Posted: 25 Aug 2008
Date Written: August 24, 2008
This paper examines the value creation model employed by Macquarie Bank, the worldwide leader in private infrastructure finance. Macquarie, an Australian firm, uses an infrastructure investment model that has been the subject of much imitation. A combination of merchant bank and venture capital fund, along with asset operator and funds manager, the firm has been a leader in transport and infrastructure privatization, first in its home territory of Australia, and now across the world. The Macquarie case is interesting because the firm has internationalized by developing a unique market expertise; transformed this expertise into a set of core capabilities; and leveraged both of these components within a structure of corporate entrepreneurship. As such the Macquarie case may offer a new hybrid model for financial services globalization. However, the turbulent events surrounding the subprime crisis have shown the limits of the model as well and raise questions about the sustainability of strategies that make have leveraging as a central component.
Keywords: financial services internationalisation, infrastructure, infrastructure finance, Macquarie Bank, MBL
JEL Classification: G21, G24
Suggested Citation: Suggested Citation