Marex Group
Founded: 2005 Public IPO Price (April 2024): $19.00 Current Price: $38.96 Market Cap: $2.8 billion
Marex Group MRX 0.00%↑ was mentioned in the beginning of my Hamilton Insurance Group write up as one of my favorite longs. Felt it was time to finally publish a piece on it.
Marex is a diversified financial services platform specializing in commodities and market access, which really is some of the best corporate jargon I have ever heard. The company has quietly become one of the world’s leading commodity brokers and clearing firms, yet it seems under discussed/appreciated. Marex grew revenue 28% to $1.6 billion and a 25% return on equity. Having IPO’d in 2024 at $19/sh they’ve performed extremely well. Marex was established originally in 2005 and, in their own words, accelerated their business following JRJ Ventures making a significant investment in them in 2010. This is a stock I personally want to own for a long time.
Founded: 2005
Public IPO Price (April 2024): $19.00
Current Price: $38.96
Market Cap: $2.8 billion
Footprint: Marex is headquartered in London and operates in EMEA, the Americas, and Asia Pacific. The North American Energy business is headquartered in Houston and the North American agricultural business is headquartered in Chicago. The New York office focuses on financial products. The APAC markets are served by offices in Hong Kong, Singapore, Australia and NZ, but there are a growing number of APAC clients served by London and New York. There is a long list of regulated entities that Marex has, I’m not going to copy and paste them in here, if you are so inclined, please see page 59 in the recent 20-F.
Acquisitions: Marex’s growth has been fueled by both organic expansion and M&A. Since 2021 their growth has been 60% organic and 40% inorganic.
In 2022, Marex completed their acquisition of ED&F Man Capital Markets for ~$220 million.
In Dec 2023, Marex purchased Cowen’s prime brokerage and outsourced trading business. This gave Marex a foothold in serving hedge funds with prime services, complementing its clearing and execution offerings.
Historically Marex also purchased smaller brokers (e.g., Spectron in 2011, X-Change Financial in 2020) to broaden its product capabilities.
From 2018-2024 Marex acquired 17 companies. There have been two acquisitions completed so far in 2025 with two recently announced acquisitions
Hamilton Court Group – UK Fx specialist
Aarna Capital – Middle East clearing business
Energy, base, and ferrous metals and financial market equities/fixed income/fx (per the PR).
Edgemere Terminals – announced in March 2025
Warehousing and logistics specializing in non-ferrous metals for the LME.
Edgemere was non-compliant with LME capital adequacy for warehouse companies and sought a buyer.
Darton Commodities – announced in April 2025
Cobalt metal trader
Segments
Clearing: Teams based in London, New York and Chicago. Clearing activities predominantly concentrated on the LME, CME, and ICE. They are a Category 1 member on the LME allowing them to trade by “open outcry.” Marex earns a commission on executing and clearing trades for their clients as well as earning interest income from the cash balances they hold.
Clearing segment has 2,900 active clients interfacing with 60 exchanges. They cleared 1.1 billion contracts, a growth of 30% yoy.
Clearing in 2024 did $466 million in revenue, which accounted for 29% of Marex consolidated revenues.
Clearing is by far the most profitable on a PBT (profit before tax) basis contributing $247.3 million