PENSION FUNDS NEED TO INVEST IN UK GROWTH

from about half of their portfolios to four per cent over the past two decades, according to data from Ondra, as reported by the Financial Times. The holdings in unlisted firms are even more minuscule. Unlike Canadian and US pension giants which have swooped

Gyimah, who left politics in 2019 and says his former life is now “in the rear view mirror”, argues that there is still a mindset issue among institutional investors that needs to be addressed in order to keep firms scaling in the UK.

“In the tech space, in the life sciences space, you do see [firms going to the US] because there is a perception, quite right in many cases, that there are more investors that are willing to back growth,” he says. “I think that this is an issue that is of serious concern.”

His comments come as the City has been plunged into a period of introspection after a slew of firms ditched London’s markets in favour of the promised land –the US.

Politicians and regulators are now working hard to boost London’s appeal. Gyimah says progress in reform has been “very encouraging”, but what is ultimately needed is a “consolidation” of defined contribution pension plans and a way to “incentivise some of the capital to flow towards growth”.

Because in Gyimah’seyes, it is big institutional investors that hold the key to London's capital markets success.