Major projects such as the £750m Liverpool2 port facility have benefited from a £35bn of investment across the region in the past five years, according to a new study. Tony McDonough reports
Investment banking and finance employs or supports more than 700,000 jobs across the North West according to a new report.
A study by think thank New Financial, and backed by the chief executive of Barclays, Jes Staley – The Impact of Capital Markets on People’s Everyday Lives – says more than 100,000 people are employed directly by the sector.
It then supports a further 900 firms that benefit from capital markets investment, supporting a further 600,000 jobs.
It reveals more than 100 North West firms have raised more than £35bn in the equity, corporate bond and syndicated loan market in the past five years. A further 1,100 high-growth companies have received £2bn investment through venture capital, business angels and alternative lending.
Major infrastructure has also benefitted from the investment from local authority pension funds and from the European Investment Bank into projects such as the £750m Port of Liverpool upgrade, while the University of Liverpool also accessed the Corporate Bond Market to finance £250m for residential investment.
The report also finds the regional activity of giant firms such as BAE Systems would have a market value of over £4bn in the North West alone, with £6bn of pension assets invested in, and nearly £1bn raised through, the capital markets.
Mr Staley said: “While not always obvious, the ability to access the global capital markets has allowed the North West to thrive and amplify the potential of its highly talented workforce.
“We must shift away from relying on traditional bank lending and instead broaden the means through which businesses and entrepreneurs access capital and financing. The answer lies in healthy, diverse capital markets.