July 2007

Prospect Research Sheet

Barclays Capital Barclays Capital is a long-standing corporate partner of London Business School and regularly attracts the highest share of intakes from the School's MBA classes. It is active in various talentsupporting initiatives and community-building projects but has so far not joined the current trend in higher education for co-founding and funding specific academic research initiatives and institutes. Contact: Catherine Shields External Relations, 1 Churchill Place, London E14 Tel: +44 (0) 20 7773 8939 / [email protected] Company Information Barclays Capital (LSE:BARC), founded in 1997, is the investment bank division of Barclays Plc. It provides corporations, financial institutions, governments and supranational organisations with solutions to their financing and risk management needs 1 . In 2004/05, it saw an income of £3.4b / $6.4b, primarily driven by the structured tax and rates business 2 . It has offices in 26 countries with over 13,200 employees, and continually expands globally 3. Background Information Barclays Capital prides itself to be committed to "supporting talent and excellence […] that reflect the firm's values of innovation, talent, teamwork and success" 4 . It " offers many career opportunities for those with an excellent academic background coupled with a creative and imaginative mind" 5 . Barclays Capital views its sponsorship relationships in the same way as client relationships with a sense of partnership and of working together towards a common goal 6 . It focuses on "supporting key social issues where [it] can make the greatest possible difference" 7. Relationship with London Business School • Barclays Capital is a leading corporate partner of the London Business School since its formation. • Barclays Capital is sponsoring various campus-community activities, most notably the LBS Rugby Club. • Barclays Capital has profited enormously from London Business School's talent formation as it has been the top recruiter of the School's MBA graduates both overall and in the Financial Services sector. For the class of 2005 8 , 17% of this sector's recruitment deals were closed by the firm, nearly twice as much as the secondplaced recruiter, Lehman Brothers, with 9% 9 . (However: please read 10 ) Prospect Visions and Initiatives (prioritising "Investing in Ideas" & "Investing in People") In light of the current trend in higher education for having co-founded and externally funded academic research initiatives and institutes – several of which have recently been placed at competitors such as IMD, INSEAD, LSE and the TriumMBA alliance – and the positive feedback given by students for Lehman Brothers' work of such kind at London Business School, prospect management might look into visions and initiatives that strengthen the School's agenda and ranking, raise the external funder's profile both among students and in the wider community plus media, while concentrating on a mutually beneficial research/teaching content. Coinciding with Barclays current launch of its Pan-Arabian retail and investment banking operation headquartered in Dubai, a forthcoming study by Barclay Capital Research will highlight the growth potential and rising global importance of the Islamic Banking system, especially Islamic Equity Funds 11 . As there are no research/teaching initiatives about this future business field, approaching Barclays Capital with the intention to co-found/fund such a venture investigating the models and culture of Islamic Finance should be considered. • This venture might be run similarly to the School's BNP Paribas Hedge Fund Centre or the Centre for Corporate Governance. Such an initiative would tie in Barclays Capital own research focus and future market expansion interest, strengthen London campus' financial position, substantiate the School's new Dubai campus venture and raise its overall profile both regionally and globally according to emerging markets development patterns. It would also contribute positively to current international affairs in a secure way. It would also reflect current students' interests in qualitative cultural aspects of quantitative jobs and could hence attract new students to the School. • The required funding framework would need to be established in a separate prospect research report. •

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Barclays Capital (2007) Corporate Profile, London: Barclays Capital Media Release. Barclays Capital (2006) Audited Consolidated Statement, London: Barclays Capital Media Release. 3 Barclays Capital (2007) Corporate Profile, London: Barclays Capital Media Release. 4 Barclays Capital (2007) Campus Recruitment, London: Barclays Capital Brochures. 5 Barclays Capital (2007) Campus Recruitment, London: Barclays Capital Brochures. 6 Barclays Capital (2007) BarCap on Sponsorship, London: Barclays Capital Media Release. 7 Barclays Capital (2007) BarCap in the Community, London: Barclays Capital Media Release. 8 Most recent data set available. 9 London Business School (2007) Employment Report 2005, London: London Business School. 10 However, for the summer 2006 placements, Lehman Brothers, having recently initiated and funded several research ventures at the School and showing strong academically and culturally-oriented presence on campus, overtook Barclays Capital as the top recruiter by 12%:11%, both overall and in the Financial Services sector. This indicates that the student body values educational commitment from sponsors and that it makes career decisions accordingly. This is supported by an internal interview-based survey of the School's MBA students conducted by London Business School researchers. 11 Conservative estimates suggest that $550b of assets are managed according to Islamic investment principles. There are currently 100 Islamic equity funds worldwide, with growth of 12-15% p.a. and total managed assets worth $5b. Sukuks, Islamic bonds, are also increasingly issued by non-Arab financial institutions, such as US-American and European banks, and are also highly attractive for institutional investors such as US-American pension funds. Credible equity benchmarks for this market are provided by the Dow Jones Islamic Market Index and the FTSE Global Islamic Index Series. The Economist Intelligence Unit (2007) Financial Sector Analysis, London: The Economist. 2