Helping listed companies raise visibility and reduce cost of capital
What we do
1
We design and implement Investor Perception Studies generating valuable investor feedback which informs your corporate strategy.
An Investor Perception Study involves a series of in-depth interviews with pre-selected members of the investment community and sell-side analysts. The interview questions are pre-agreed with you and cover corporate strategy, perception of management and key corporate messages. This is a valuable exercise. Potential changes in strategy can be tested e.g. an acquisition or disposal, and the impact of your equity story can be assessed. As our role in the study is “neutral”, both investors and analysts often reveal thoughts that may not surface in ordinary roadshow meetings.
2
We define the unique nature of our client’s investment story and improve their investor communications
Many excellent companies fail to articulate their uniqueness to potential investors. Portfolio managers meet hundreds of companies per year, so communicating your equity story effectively is vital.
We not only know many of your potential investors but we also understand their investment processes. Therefore we can help you to maximise the impact that your corporate message has from the first point of contact, be this your equity presentation, investor relations website or annual report.
3
We actively target and educate the right potential investors. We then connect them to you via virtual and physical roadshows
We have over fifty years combined experience delivering high-conviction investment ideas to small and mid-cap portfolio managers based in the UK, US and Europe. We can also provide access to Family Offices and investment clubs. Crucially we know what type of company is appropriate for each investor. Having identified the potential investors, we do the ground work first so you can manage your time effectively when you meet them.
Activist Investors
There is a sustained rise of shareholder activism in Europe. Traditionally large companies have been targeted but activist campaigns are increasingly focussing on mid and small cap companies too. Shareholder activism is not necessarily bad news, but it’s important to be prepared. We can show you how to recognise the signs of activist involvement. More importantly we can work with you to prepare a response to a potential attack, should it happen.
ESG – Raising your profile
Renewed investor interest in environmental, social, and governance (ESG) issues have surfaced during the COVID-19 pandemic. Sustainable fund inflows have significantly outperformed their traditional counterparts with assets passing the $1 trillion milestone. Today, more asset managers integrate ESG into their standard investment processes. Arke Advisers is not an ESG specialist consultancy business. However we’ll check that your ESG credentials are adequately highlighted in your presentation materials to maximise your visibility to ESG investors and meet the more demanding requirements by traditional funds.
Cost of Capital
Many excellent small and mid-cap companies fail to communicate effectively with their current and potential shareholders. This can prove financially costly if the share price trades below intrinsic value – it raises the cost of equity. Through our understanding of what investors need and our breadth of relationships, we can build a broader and more stable shareholder structure, allowing you more time to focus on driving your business forward.
Underpinning all of our work is the aim to make sure that your share price properly reflects the real value of your company.
MiFID II
Under MiFID II the nature of the relationship between brokers and institutional investors has fundamentally changed. This brings negative consequences for listed companies. Traditional brokers and research houses no longer have access to all institutional investors, depriving corporates of potential shareholders. At Arke Advisers we are unconstrained. We also have access to Family Offices, a growing asset class not serviced by brokers.
Corporate Governance
It is a satisfying observation that over the past 25 years, the most successful stock market performers are those where the senior management teams have one thing in common - they are good people! Strong and ethical management teams retain staff, treat their customers and suppliers fairly, are receptive to new ideas, accept constructive criticism and in time, attract the best long-term shareholders.
Thankfully the importance of good Corporate Governance is becoming widely accepted in the listed equity community. In July 2018, the UK's FRC (Financial Reporting Council) published a revised UK Corporate Governance Code. This new Code sets a benchmark that should eventually be adopted worldwide.
The following is an extract from the FRC's UK Corporate Governance Code and is an excellent summary of the importance of good Governance:
Companies do not exist in isolation. Successful and sustainable businesses underpin our economy and society by providing employment and creating prosperity. To succeed in the long-term, directors and the companies they lead need to build and maintain successful relationships with a wide range of stakeholders. These relationships will be successful and enduring if they are based on respect, trust and mutual benefit. Accordingly, a company’s culture should promote integrity and openness, value diversity, and be responsive to shareholders and wider stakeholders' views.
Source: FRC (Financial Reporting Council) UK Corporate Governance Code - July 2018.