London keeps global edge as top transport finance hub

Tower Bridge on the Thames River is seen from The View gallery at the Shard, western Europe's tallest building, in London January 9, 2013.

Credit: Reuters/Luke Macgregor

By Jonathan Saul

LONDON | Fri Mar 15, 2013 11:27am EDT

LONDON (Reuters) - London remains the top financing centre for the global transport industry, although it faces stiff competition from New York and capitals in Asia Pacific as companies seek to tap more funding sources, a survey showed on Friday.

Some 37 per cent of respondents from the global aviation, rail and shipping sectors ranked London as the key financial centre for transport, followed by New York at 14 percent and Singapore at 7 percent, the survey by international law firm Norton Rose found.

"London and New York remain key financial centres for the transport industry but are looking over their shoulders at Asia which is growing in importance," said Harry Theochari, global head of transport at Norton Rose.

Of those canvassed, 43 percent from the rail industry said London was most favoured as a financing hub, followed by 40 percent in the shipping sector and 31 percent in aviation.

The annual survey by Norton Rose, now in its fourth year, is one of the transport sector's leading barometers of market conditions, especially for the shipping community.

While London has a 300-year history as a leading finance, insurance and legal centre for the shipping industry, the survey said companies were looking at alternatives due to tough trading conditions, exemplified by a warning last month from Frontline (FRO.OL), one of the world's biggest tanker operators.

Frontline said it may miss bond repayments due in 2015 and be forced to restructure again if the market's depression continues.

"A dramatic reduction in the availability of debt finance in the London market means that shipping is increasingly turning to structured finance and private equity," Theochari said.

"This gives New York a distinct advantage, as it has the largest capital markets in the world and far greater access to private equity than any other global financial centre."

The survey canvassed views from 1,006 participants from a range of companies involved in transport including financiers, ship owners and operators, manufacturers, builders and industry advisors. Those polled comprised 383 from the aviation sector, 314 from rail and 309 from shipping. (Editing by David Holmes)

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Charity shelves opulent London hedge fund gala dinner

Britain's Catherine, Duchess of Cambridge speaks with Elizabeth Murdoch at the 10th annual ARK (Absolute Return for Kids) gala dinner at Kensington Palace in London June 9, 2011.

Credit: Reuters/Arthur Edwards/pool

By Laurence Fletcher

LONDON | Mon Apr 29, 2013 11:02am EDT

LONDON (Reuters) - A lavish gala dinner that was a highlight of the London hedge fund industry's social calendar and counted royalty among its guests has been quietly shelved.

The ARK Gala Dinner, which started in 2002, cost as much as 10,000 pounds ($15,500) a ticket, with entertainment over the years ranging from singers Elton John and Prince to a giant mechanical elephant.

The dinner will not take place this year as the charity it supports looks at other fundraising events, a spokeswoman for ARK (Absolute Return for Kids) said.

She said that the charity instead hosted a champagne reception in January attended by London Mayor Boris Johnson.

"We think we should have a variety of means of communicating (with donors)," she said. "More and more of the donors are coming to us interested in particular programs ... At the dinner, conversations (about projects) are not as detailed."

The spokeswoman said no decision had been taken about whether the event would take place in the future.

The amount raised by the dinner - which funds projects ranging from training health workers in rural Zimbabwe to running British schools - has almost halved since its 2007 peak, when 1,200 guests helped to raise 26.6 million pounds.

Last year's dinner raised 14.5 million pounds, with the charity citing "an extraordinary show of generosity at any time, but especially so given the challenges of fundraising in this climate."

The event was well known for its high-profile speakers, such as the Duke of Cambridge, former U.S. President Bill Clinton and Queen Rania of Jordan. Venues have ranged from Waterloo Station to Kensington Palace Gardens.

Prizes up for auction have included a Fiat car decorated by artist Tracey Emin, an invitation to Nelson Mandela's 90th birthday party and yoga with musician Sting.

The dinner has been put on ice just as the $2.4 trillion hedge fund industry has rebounded strongly from the financial crisis. In this year's Sunday Times Hedge Fund Rich List, for instance, 13 managers had fortunes of 300 million pounds or more, up from nine the previous year.

A number of hedge fund managers and firms have been making philanthropic donations under their own steam.

Brevan Howard, headed by Alan Howard, who is ranked top of this year's Sunday Times Hedge Fund Rich List with a 1.5 billion pound fortune, is giving 20.1 million pounds to fund a new research center at Imperial College. Winton Capital's David Harding has given 20 million pounds to Cambridge University.

Big donors to the arts include CQS founder Michael Hintze and Lansdowne Partners co-founder Paul Ruddock.

One hedge fund industry executive also told Reuters that some clients had been unable to accept invitations to certain events following the UK Bribery Act which came into effect in 2011 and which has made companies cautious about offering or accepting corporate hospitality.

ARK was set up by Arpad Busson, partner of actress Uma Thurman. He founded hedge fund investor EIM in the 1990s and has been mulling a sale of the fund for some time.

(Reporting by Laurence Fletcher. Editing by Jane Merriman)

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