Three Decades of AIM: celebrating growth, jobs and Opportunity
Since 1995 AIM has helped more that 4,000 firms raise over £130bn of capital and helped launch household names like Jet2 and Fever-tree, says city minister Emma Reynolds
This year marks the 30th anniversary of the London Stock Exchange’s Alternative Investment Market (AIM) — a milestone that offers a moment to reflect on the transformative role it has played in supporting the UK’s most innovative companies to grow and succeed. It is also an opportunity to look ahead and think about how we can ensure our capital markets remain world-leading for the decades to come.
Since 1995, AIM has been an essential springboard for ambitious growth companies, helping more than 4,000 firms raise over £130bn of capital. Many of today’s household names took their first steps towards public ownership on AIM, such as Jet2 and Fever-Tree. In doing so, they have created jobs, driven innovation, and contributed to communities up and down the country.
The entrepreneurial spirit that drives the UK forward
AIM has been instrumental in nurturing the entrepreneurial spirit which drives the UK forward, supporting companies through every stage of their growth journey. As we celebrate its achievements, I also recognise the importance of ensuring that the next generation of British businesses have the access to the long-term capital they need to thrive.
That is why we are delivering a programme of ambitious capital markets reforms to make the UK the best place in the world to raise capital and grow. These include supporting listings on the main market by simplifying the UK Listing Rules, cutting unnecessary red tape to raising further capital, and improving the quality and quantity of investment research. These measures have been widely welcomed by companies, investors, and industry bodies. The London Stock Exchange is also looking at how to improve the rules for companies who list on AIM, along with measures to enhance the wider regulatory and funding environment.
However, I know that there is more work to be done. We want to build a culture of retail investment so that working people can share the benefits when our great companies grow. Capital markets will be at the forefront of the Chancellor’s mind when she delivers her keynote speech to the City at Mansion House on the 15th July, and a core pillar of the Chancellor’s Financial Services Growth and Competitiveness Strategy, which will be then too. The Strategy has been co-designed with industry and will serve as the central framework for our growth mission for the sector.
Backing Britain
Close collaboration between industry, government, and regulators is needed if we’re to unlock the enormous potential in the UK’s capital markets. That’s why I welcome the ambition in initiatives like the industry-led Mansion House Accord, that was signed last month. This saw 17 of the largest workplace pension providers committing to invest at least 10 per cent of their defined contribution default funds into private assets, with half of that amount earmarked for the UK. The Accord will directly support investment in growth markets like AIM, as signatories will be able to count investment in AIM shares towards the targets.
This greater investment under the Accord will also benefit smaller companies not currently listed or quoted, with this extra investment enabling them to grow and scale. One day that company might be able to follow in the footsteps of Fever-Tree, list on AIM and become one of this country’s most successful businesses.
As we celebrate AIM’s 30th anniversary, our focus is firmly on the future. Delivering bold reforms, increasing investment into UK companies, and pioneering exciting new initiatives like PISCES (the Private Intermittent Securities and Capital Exchange System), we are unlocking new opportunities for businesses and investors alike.
The story of AIM is a story of ambition. As economic secretary to the treasury, I am proud of what we have achieved so far — but I know that we need to go further and faster to boost our capital markets and make sure everyone has a stake in our nation’s growth.
Emma Reynolds is City Minister at HM Treasury