September 2010

In 2009, companies on the London Stock Exchange’s growth market AIM contributed a total of £21 billion to UK GDP and supported 570,000 jobs through direct, supply chain and multiplier effects, but greater fiscal incentives and fewer restrictions are needed to stem net outflows of capital from small caps and enhance the economic benefits delivered by the sector, according to a report by Grant Thornton, commissioned by the London Stock Exchange.

The full report from Grant Thornton:

http://www.londonstockexchange.com/companies-and-advisors/aim/publications/documents/aim-economic-impact-2010.pdf

Link: http://www.londonstockexchangegroup.com/newsroom/2010pressreleases/studyrevealsaimsgbp2bncontributiontoukeconomy.htm

A recent report published by Alpen Capital highlights the growing trend of PE investment in the education sector. This is corroborated by evidence from Zawya: more than $242m invested in GCC education sector across 6 deals since 2006 (with a few more undisclosed). PE has helped these companies grow organically as well as through acquisitions. I see a rising trend of PE investment in both education and healthcare in GCC during the medium term.

Link: : http://www.alpencapital.com/includes/GCC-Education-Industry-Report-September-2010.pdf