The role of the city

For an economy to flourish it needs a well developed capital market with efficient mechanisms to bring savings and investment opportunities together, and the City of London is undergoing major changes to meet growing internationalism. The role of its financial institutions is explained from three aspects: the historical evolution, the sources of funds that have been available to it, and those key areas that need to be addressed by both the City and industry when investment proposals are prepared. There is particular reference to growing high-technology companies and to management buyouts, and the range of funds available for different stages of business development. The investment criteria for a business are examined, and the way in which the management team will be assessed for compatability, experience and motivation.