Foreword Introduction: the opportunity Policy and regulation Aligning US and UK approaches Investment and capital 昀氀ows Sector focus Looking ahead Investment and capital 昀氀ows US and UK 昀椀nancial and professional services: growing together The UK serves as a critical node for the global These strong bilateral trends have accelerated economy, connecting regions under a common signi昀椀cantly over the last 昀椀ve years – close to 25% uplift business language – UK common law governs in bilateral trade and 30% in two-way FDI. With new areas 40% of international corporate arbitrations. of growth emerging and strong collaboration between regulatory authorities on both sides of the Atlantic, there With a supportive policy environment working in parallel, are further opportunities to grow together. we can continue to build on the strong investment 昀氀ows between our two countries and capitalise on untapped opportunities within FPS, including banking, asset management, tech, insurance and professional services. $400bn+ 6 7 The US and the UK are key FPS trade and investment partners. Bilateral FPS trade stood at nearly $80bn in Two-way FDI in 昀椀nancial and professional 2022, while two-way foreign direct investment (FDI) services in 2022 8 reached around $450bn – and supported close to 9 150,000 jobs. Our two leading financial services centres already invest strongly in each other, “The UK has been Blackstone’s exchanging capital, talent, knowledge and innovation. European home for 23 years, and FDI stock in US FPS held by UK companies amounted to we are proud to be building our 10 with many 昀椀rms using their US presence as $105bn, new expanded headquarters in their regional North America HQ. Over 700 UK companies London. We believe that the ability engaged in close to 1,300 direct investment projects that 11 to attract global investment, great created around 60,000 US FPS jobs. businesses and world class talent On the other side of the Atlantic, FPS FDI stock in the UK will see the UK continue to thrive held by US companies was valued at $341bn in 2022 – for years to come.” a third of the stock held abroad. This showcases the UK’s strategic importance to US FPS companies. The UK Farhad Karim, COO Blackstone Europe is also the location of choice for many US businesses seeking European and Middle East (EMEA) headquarters, thanks to great domestic opportunities and international market access. Sources: 6. ONS 2022, BEA 2023 7. fDi Markets accessed September 2023 8. BEA 2023 9. fDi Markets accessed September 2023 10. BEA 2023 11. fDi Markets accessed September 2023 7