6 Feb 2012
Foreign owned firms make up nearly a third (30%) of the financial services groups in the UK, worth over £5m in the investment sector, according to the UK Financial Services Ownership, Value and M&A report from TheCityUK, UK Trade & Investment and IMAS Corporate Finance.
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%).
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%.
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%).
“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,” said Chris Cummings, Chief Executive of TheCityUK. “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.”
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, said: “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."
