Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Chris Cummings, CEO, TheCityUK

9464

30 per cent of UK investment companies owned overseas, says new research

RELATED TOPICS​

According to the UK Financial Services Ownership, Value and M&A report from TheCityUK, UK Trade & Investment and IMAS Corporate Finance, foreign owned firms make up nearly a third (30%) of UK financial services groups worth over GBP5m in the investment sector.

The US is by far the largest overseas investor within the sector, accounting for over 57% of such investments. This is followed by Switzerland, which whilst the second largest investor represents less than 6% of the investment sector.

The report, produced by IMAS, reveals an investment sector consisting of 1,650 groups which each have an estimated equity capital value in excess of £5 million. UK quoted organisations own 13% of those in this sector while just 2.5% are held by private equity, which is lower than across the financial services sector as a whole (5%). However, one of the key findings is the importance of privately held groups within the sector, representing over 46% of the total and over 23% of the larger groups analysed (£100m+ equity capital value) which is higher than in any of the other sectors of the industry.

The investment sector is the largest within the UK’s financial services industry, representing 48% by number, the majority of which are involved in advice. The second largest sector is lending (26%), followed by general insurance (18%) and financial support services (8%).

Chris Cummings (pictured), Chief Executive of TheCityUK, says: “This report shows the strength of the investment sector and its ability to attract overseas investment while maintaining a strong base of privately held businesses. The investment sector is part of an industry that accounts for nearly 9% of the UK’s total economic output. Therefore it is vitally important, both to our financial services sector and the wider economy that the UK continues to be open and attractive to inward investment.”

As in political spheres, a special relationship exists between the US and the UK’s financial services sectors. The research shows that the US is the largest overseas investor across the financial services industry as a whole, accounting for 45% of the total foreign investment overall. Despite its close proximity, Europe represents only 26%, Asia accounts for 16% and BRICS 4%.

Edward Oakden, Managing Director of Sector’s Group, UK Trade & Investment, says: “The fact that a quarter of all financial service firms are overseas owned clearly demonstrates the open character of financial services in the UK. The appeal of the UK as a place for financial services companies to do business can be attributed to our robust legal and regulatory framework, the expertise and skills base across the UK, and our location and language. The UK is well poised to continue to attract investment, not only from the US but also from Europe and high growth economies.”

Olly Laughton-Scott, Managing Partner of IMAS, says: “The UK is a key hub in the increasingly globalised financial services marketplace and we expect to see continued cross-border M&A activity with international firms looking to enter or expand their presence in the UK market. It is a testament to the UK’s transparency and disclosure requirements in both the public and private capital markets that key statistics, such as ownership and financial size, are available enabling the production of this report.”

Latest News

Data provider Preqin has published its Deal Flow Monitor: Q1 2024 report, examining trends in..
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according..
Octopus Investments (Octopus) has announced it has launched a Natural Capital Strategy...

Related Articles

Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by