Unlocking European Capital: Insights from Chris Mayo on Expanding Your Investor Base

For North American companies aiming to diversify their shareholder base, Europe offers a wealth of opportunity. On the Winning IR podcast, Chris Mayo, an expert in international investor relations, shares his insights on how IR teams can successfully tap into European markets. Here are the key takeaways from our conversation:

Accessing European Capital Markets

Strict regulations often prevent European and British investment firms from investing in North American companies. To access European capital markets, listing your company on a European or British stock exchange is crucial. Without this step, many European investors simply won’t be able to invest.

Cross-Listing on the London Stock Exchange (LSE)

Chris emphasizes that cross-listing on the London Stock Exchange (LSE) is more straightforward than many North American companies might think—especially for those already listed on the NYSE or TSX. Most rules and regulations are similar, but senior management should be prepared for stricter disclosure requirements related to stock dealings. Additionally, companies listed on major North American exchanges like the NYSE, NASDAQ, or TSX can leverage a fast-track process for cross-listing on the Alternate Investment Market (AIM).

Partnering with Local Advisors

Navigating a new market can be challenging, but local experts can make the process smoother. Chris recommends partnering with a local broker in the UK to engage with investors. As he explains:

"You're not engaging with those investors on a specific deal. You're educating them on why they should invest in you. Often, companies announce their intention to list in London, then go on the road to meet investors with a UK mandate."

When selecting local advisors, it’s important to choose experts based on your sector and market cap to connect with right-fit investors.

LSE vs. AIM: Making the Right Choice

When cross-listing in the UK, companies generally have two main options: the London Stock Exchange (LSE) or its subsidiary, the Alternate Investment Market (AIM). AIM focuses on small and medium-sized growth companies. Chris explains that while both options have advantages, companies looking to raise capital aggressively may prefer AIM due to its lighter regulatory requirements.

Understanding British Capital Market Preferences

Understanding the preferences of British and European investors is key to success. As Chris explains:

"[The UK] investor base is long-only institutionally focused. That’s one of the hallmarks of the UK market, especially compared to the US."

The US market tends to be more liquid and favors shorter positions, while the UK and European markets typically take longer positions, making relationship-building even more essential.

Conclusion

At Irwin, we’re committed to helping IR teams expand their global reach and engage effectively with investors worldwide. Our platform integrates market data and CRM functionality, allowing you to identify potential European investors, track interactions, and gain actionable insights—all in one place. By centralizing your data and automating routine tasks, Irwin empowers you to focus on building meaningful relationships with investors, whether in New York, London, or Frankfurt.