80% of institutional investors expect strong growth in non-UK fund managers seeking to list on LSE

Written by Adam Cadle

28/09/2022

Eighty per cent of institutional investors expect strong growth in non-UK fund managers seeking to list overseas on the London Stock Exchange (LSE) over the next 18 months, according to new research from Ocorian.

The research said most of this growth will come from Europe, closely followed by North America. The Middle East, Asia and Africa were ranked in third, fourth and fifth place, respectively.

The top reason behind this expected growth is overseas fund managers’ wish to diversify their investor base. The research showed fund managers are also increasingly attracted by the growing size of the market and the fact it is becoming easier to list funds.

However, the results of the study among investors focusing on real estate, private debt and infrastructure reveal overseas fund managers are likely to face challenges along the way. Institutional investors predict incorporating ESG principles into their operations and investment decisions will be the most difficult challenge facing overseas fund managers launching on the LSE. This is very closely followed by the costs involved in listing, followed by compliance with regulatory and jurisdictional frameworks which was predicted as the third most difficult challenge to overcome.

Gerry Warwick, director of fund services in UK and Ireland at Ocorian, said: “There is a considerable amount of pent-up demand in the market with companies waiting until conditions stabilise. There is increasing awareness of the benefits of listing in the UK worldwide but, fund managers wishing to successfully list must be aware of the challenges they could encounter and plan ahead to put in place strategies to address these.”

Ocorian commissioned independent research company PureProfile to interview 102 senior executives and fund managers at financial institutions focused on investing in private debt, private equity, real estate and infrastructure in the US and the UK during June 2022

Related Articles