April 17, 2024

Embracing the Shift: Navigating Corporate Access Evolution in Capital Markets

By Tier1

On March 21, SS&C Tier1 hosted its annual Toronto-based Client Council. This half-day event featured several presentations from executives, in addition to a thought leadership panel. Below is a summary of the panel discussion.

Doug Christensen, VP of Capital Markets, SS&C Tier1: With over twenty years of experience in capital markets, Mr. Christensen transformed the research and corporate access after years as the COO for the sales and research division at Barclays. He focused on building and training teams for effective corporate access to enhance the corporate banking and services delivered to investment professionals.

Panelists:
During the recent Client Council event hosted in Toronto, Doug led a panel discussion with Panelist A, a Senior Research Analyst, and Panelist B, the Head of Corporate Access at a Bank.

 

Corporate Access in a Changing Landscape:
Doug initiated the discussion by outlining the challenges posed by regulatory changes since 2018, impacting asset managers' ability to pay for research services and corporate access with trading commissions. He emphasized the complexities of budget requirements and the regulators reversing decisions on the bundling of commissions which have forever impacted the value of such services.

 

The Significance of Corporate Access:
Is there more or less demand from investors for corporate access? The discussion and trend for the buy side to go direct and not using an intermediary has been on the rise in discussions but are you see less demand for your corporate access?

Panelist B highlighted the enduring importance of corporate access despite commission compression, stressing its continuous demand and critical role in fostering personal relationships between portfolio managers and management teams. Panelist A emphasized the invaluable nature of corporate access for smaller caps and private companies seeking capital, underscoring the significance of roadshows and its unique role in facilitating connections.


"Adapting to the Transforming Landscape of Corporate Access".

Doug delved into the impact of technological advancements and global regulatory changes on corporate access, highlighting his strategy to navigate these shifts through ongoing dialogues with regulators.

Panelist B underscored the enduring demand for corporate access amid industry changes, emphasizing the collaborative approach necessary for successful corporate access initiatives.

Panelist A elaborated on the pivotal role of corporate access in the pre-marketing phase of deals, particularly for smaller cap companies, and stressed the significance of informal interactions in fostering corporate relationships.

 

Insights and Value of Corporate Access Feedback:
The discussion emphasized the importance of feedback from corporate access events. Doug illustrated how client feedback can lead to securing corporate mandates by offering valuable insights to companies and the value it can provide to investors when seeking advice and guidance as part of their due diligence and evaluation process.

Panelist B highlighted the value of feedback loops, where meeting insights are shared back with clients to enhance relationships and provide added value.

 

Doug wrapped up this segment by talking about the importance of hosting research and corporate access in hosting and managing the events. It’s important to be part of the discussion and be there to listen and advise clients and corporates in the context of their discussions and decisions.

 

Concluding Reflections on Corporate Access:
During their final remarks, the panelists reflected on the significance of corporate access as a cornerstone of their services. They emphasized its stability, intrinsic value, and essential role in nurturing and strengthening corporate and client relationships amidst the evolving dynamics of capital markets.