The British non-bank issuer also saw the fair value of its structured notes jump 44% from a year ago as it continues to expand beyond Europe.
Marex Group (‘Marex’) has posted US$92.3m in revenue for its financial products segment designed to offer structured notes in 2024, compared to US$66.1m recorded in 2023, according to its latest annual report published yesterday (24 March).
The revenue growth benefitted from ‘positive investor sentiment and equity market performance’.
We also expanded our product coverage with custom index and FX capabilities and our global footprint - Marex
Marex also reported that the fair value of its structured notes portfolio jumped by 44% to US$2.7 billion as of the end of 2024 – this consist of 4,029 issuances with an average maturity of 17 months on the paper of the group or its fully owned subsidiary Marex Financial Products.
The average estimated interest rate of the structured notes - a key source of liquidity for the business - was 6.4% compared to 7.8% for 2023. At the same time, interest expense went up to US$170.4m from US$142.2m.
‘We also expanded our product coverage with custom index and foriegn exchange (FX) capabilities and our global footprint which now includes business from Australia and the Middle East, bringing new clients onto our platform,’ stated the report.
Earlier this month Marex entered the Nordics market with a range of bespoke indices in partnership with Compass Financial Technologies.
The financial products segment, led by Nilesh Jethwa (right), accounted for around 57% of the revenue for Marex’s hedging and investment solutions division that houses around 180 front office staff.
The segment also drove up the firm’s cash and liquid assets to US$6.2 billion, along with its US senior issuances during the year, and lifted the net trading income by 20% to US$492.5m.
Hedging and investment solutions revenue increased 26% US$161.5m for 2024, making up 10% of the total revenue. Adjusted profit before tax rose 24% to US$42.0m within the division.
Groupwide, Marex posted record adjusted profit after tax of US$231m facilitated by strong Q4 tailwinds, representing a 42% increase YoY. Its revenue climbed 28% to US$1.6 billion.
In 2025, the Nasdaq-listed company aims to further build out its distribution network in the US and Asia Pacific by adding additional offices and exploring commodities hedging opportunities in South America.
The Americas has been an ‘important pillar’ for Marex growth strategy, accounting for 36% of the group’s revenue, or US$578m. Europe, the Middle East and Africa (Emea) and Asia Pacific contributed US$885m and US$131m, respectively.
The non-bank issuer is gearing up to establish a registered shelf to offer structured notes in the US with existing footprint in the Regulation S notes space for non-US investors, as SRP reported. It is likely to file the F-3 registration statement to the Securities and Exchange Commission (SEC) as early as next month, SRP understands.
The firm will be primarily eligible for the issuances of registered notes if its public float remains above US$75m over at least 12 months. The criteria has not been met since its initial public offering (IPO) last April as the public float hovers between US$30m and US$40m.
MRX share price (US$) and public float (US$m) since IPO
Source: Bloomberg
In Asia Pacific, the financial services provider has hired a total of 203 full-time employees across its Hong Kong, Singapore, Australia and New Zealand offices throughout the year.
Marex is also active in the cryptocurrency space, primarily on Bitcoin and Ethereum. The annual report shows that there were residual exposures in four other cryptocurrencies, driven from two structured notes previously issued, as of 2024.
Click here to view Marex Group’s 2024 annual report.
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