Trends in Corporate Access

Moira Conlon, President of Financial Profiles, recently moderated a panel discussion for NIRI Los Angeles consisting of representatives from both the buy-side and the sell-side discussing the latest trends in Corporate Access (i.e. investment banks and brokerages arranging meetings between issuers and institutions).

The panel consisted of:

  • Kirsten Fraunces, Managing Director and Head of Equity Sales, Wedbush Morgan
  • Mitchell Schacher, Executive Director and Head of Access Origination, UBS
  • Jeffrey Lin, SVP and Senior Equity Analyst, TCW
  • Rohan Rangaraj, Research Analyst, Cove Street Capital

Here are some of the interesting takeaways from the panel discussion:

  • Corporate Access is the single most valuable service that the sell-side provides to the buy-side.
  • Corporate Access teams are happy to engage in advance planning for non-deal roadshows so they can get a good sense for what type of investors the issuer would like to meet with and any particular firms they want to target.
  • While CEOs and CFOs may not have time to make trips to the smaller financial centers around the United States, IRO-only meetings are a great idea to help engage with institutions in smaller cities.
  • Companies should consider giving a copy of their slide presentation to the Corporate Access team in advance of the roadshow, so that it can be distributed to the firms on the schedule to help them prepare for the meeting.
  • Institutions are happy to schedule meetings directly with the issuers, as it saves them from having to compensate the sell-side in the form of commissions for arranging the meetings.
  • On the other hand, the sell-side believes that all non-deal roadshows should be arranged through a sell-side analyst/Corporate Access team as a way of rewarding them for helping to market your stock.
  • Texas and Toronto are two areas that should not be overlooked for non-deal roadshows. Texas in particular is one of the fastest growing areas for assets under management and hedge fund formation.
  • In order to successfully target European institutional investors, a company has to commit to marketing trips in Europe every year. A company won’t get the results it wants if it only goes to Europe once every few years.
  • Corporate Access teams are open to scheduling investor meetings for companies that aren’t covered by their sell-side analysts.