Macquarie Group Interview Questions & Prep

“Why Macquarie rather than a traditional bulge-bracket investment bank?”

What they test. Understanding of Macquarie as a global asset manager and infrastructure investor rather than a pure-play advisory shop.

Weak answer. Generic statements about great culture, global footprint or prestigious training that fit any City bank.

Strong answer. Highlights balance-sheet deployment, status as the world's largest infrastructure asset manager, a focus on real assets, and the entrepreneurial culture, referencing how MacCap combines principal investing with advisory.

“Why this specific division, Macquarie Capital versus CGM versus MAM?”

What they test. Granular knowledge of divisional mandates and where revenue comes from.

Weak answer. Confusing the divisions, such as discussing managing an infrastructure fund while interviewing for an advisory role.

Strong answer. Differentiates advisory and principal investing (MacCap), market-making and commodities (CGM) and long-term fund management (MAM), naming products or asset classes unique to that desk.

“What attracts you to the UK and European infrastructure market right now?”

What they test. Localisation of your thesis to EMEA.

Weak answer. Discussing US projects or global generalities with no European reference.

Strong answer. Cites specific dynamics such as National Grid structural changes, Ofwat water-sector pressures or European renewable targets and CfD mechanisms.

“Tell me about a high-stakes decision you made with incomplete data.”

What they test. Risk awareness and analytical rigour under pressure.

Weak answer. A chaotic situation where you guessed without quantifying the missing variables.

Strong answer. A STARR account quantifying the data gaps, the extrapolation method, the risk assessment and a measurable outcome.

“Describe a fundamental disagreement with a team member and how you resolved it.”

What they test. Collaboration, emotional intelligence and professional maturity.

Weak answer. Claiming you never disagree, or forcing your own view.

Strong answer. Focuses on objective data and project goals, using an analytical framework to test both viewpoints.

“Tell me about a time you failed or made a significant mistake. What did you do next?”

What they test. Accountability and continuous learning.

Weak answer. A fake mistake like working too hard, or blaming others.

Strong answer. Immediate ownership of a genuine error, swift remediation and a structural change so it never recurs.

“Walk me through your CV.”

What they test. Narrative cohesion and a logical trajectory toward Macquarie.

Weak answer. A dry, unstructured reading of the page with no why behind transitions.

Strong answer. A structured 2-3 minute overview connecting academics, internships and leadership into a logical pivot to this specific role, with quantified achievements.

“You interned at a boutique or bulge bracket. Why move to Macquarie?”

What they test. Clarity of direction and understanding of structural differences.

Weak answer. Criticising the previous employer or wanting a bigger brand.

Strong answer. Validates the prior experience for baseline skills but seeks an environment pairing advisory with principal investing and deep real-asset specialisation.

“You have a non-finance background. How will your skills translate?”

What they test. Cognitive diversity and translating skills into financial contexts.

Weak answer. Downplaying your background or claiming technicals do not matter.

Strong answer. Shows how a STEM degree trained you on complex datasets or humanities on rigorous argument, plus proven financial fluency through self-study or societies.

“Pitch me an asset or sector Macquarie should invest in right now in the UK or Europe.”

What they test. Investment rationale, sector knowledge and risk awareness.

Weak answer. Vague suggestions like invest in green tech with no financial justification.

Strong answer. Structures it: asset definition (UK grid-scale battery storage co-located with solar), macro tailwinds, revenue model (arbitrage, ancillary services) and risks and mitigations (degradation, Ofgem changes).

“How do Ofwat and Ofgem affect infrastructure investing in the UK?”

What they test. Sophisticated understanding of regulated assets.

Weak answer. Simple awareness that regulators exist.

Strong answer. Explains the Regulatory Asset Base and how the regulator sets allowed returns over control periods (such as AMP8 for water), and how tightening targets or capex allowances hit equity returns.

“Explain current European energy-market dynamics and how they affect CGM.”

What they test. Market awareness tailored to commodities.

Weak answer. Broad statements that energy prices are volatile or high.

Strong answer. Discusses gas storage levels, LNG constraints, power-spread volatility and carbon pricing (EU and UK ETS), and how volatility raises client demand for hedging and structured products.

“Walk me through how a 10% rise in capital expenditure flows through the three statements.”

What they test. Accounting links and cash versus non-cash treatment.

Weak answer. Assuming capex immediately reduces net income, or failing to balance the asset side.

Strong answer. No immediate income-statement impact; on the cash flow statement capex rises under investing, cutting net change in cash; on the balance sheet cash falls and PP&E rises by the same amount, with higher future depreciation noted.

“How do you calculate unlevered free cash flow, and why use it in a DCF?”

What they test. Corporate valuation fundamentals.

Weak answer. Confusing levered and unlevered cash flows or omitting working capital or capex.

Strong answer. EBIT times (1 minus tax rate), plus depreciation and amortisation, minus the change in non-cash working capital, minus capex; used because it is the cash available to all capital providers independent of capital structure.

“What is the Debt Service Coverage Ratio, and why is it critical in project finance?”

What they test. Infrastructure and project-finance mechanics.

Weak answer. Defining it vaguely as a leverage ratio.

Strong answer. CFADS divided by total debt service (principal plus interest); critical because project finance relies on ring-fenced asset cash flows, not corporate guarantees, so lenders enforce DSCR covenants of roughly 1.20x to 1.40x.

“What is the difference between contango and backwardation?”

What they test. Market knowledge for CGM candidates.

Weak answer. Reversing the definitions or omitting the drivers.

Strong answer. Contango is when the futures price exceeds spot (an upward forward curve from cost of carry); backwardation is the opposite, signalling near-term supply shortage or high immediate demand.

“Invest £1bn into one asset class you cannot sell for 30 years. Where, and why?”

What they test. Macro thematic vision, long-term risk awareness and institutional alignment.

Weak answer. Speculative or cyclical assets like crypto or generic tech startups.

Strong answer. A structurally durable, defensive asset such as European subsea HVDC interconnectors or core digital infrastructure, justified by secular demand and inflation-indexed revenues.

“Estimate the volume of water lost through London pipe leakages each day.”

What they test. Structured guesstimation and sector familiarity.

Weak answer. A random number with no framework.

Strong answer. About 9m people times ~150 litres a day is roughly 1.35bn litres; apply a 20-25% leakage rate on older UK networks for roughly 270-330m litres lost daily, stating assumptions.

“What happens to a project's IRR if inflation doubles, with revenues and costs perfectly inflation-linked?”

What they test. Financial logic under stress.

Weak answer. Guessing IRR drops, or not distinguishing nominal from real.

Strong answer. Nominal cash flows rise so the nominal IRR rises, but the real IRR is unchanged.