Corporate Insights The Investor Landscape: four evolving themes and their implications

The Investor Landscape: four evolving themes and their implications

(Winter 2021-22)

Themes

It is important for corporates to be aware of changes to the investor landscape that will impact how they engage with investors of all types. There is also a set of developments in the equity and debt capital markets that, in large part, relate to these changes in the investor landscape, such as private pre-IPO equity, PIPEs (Private investments in public equity), direct listings, private debt, venture lending, structured credit and asset securitization, many of which will come into play at different stages of a company’s lifecycle. In this issue of Credit Suisse Corporate Insights, we evaluate four evolving themes in today’s investor landscape:

  1. Retail investors will continue to play a larger role
  2. Passive investing is on the rise… and becoming more “active”
  3. Private companies are staying private for longer
  4. ESG continues to grow

These four themes can influence market dynamics and valuations and so we set out to provide our clients with a primer on them.
 

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Capital allocation: paths to value

Introduction

Investors play a critical role in the expansion and success of a corporation. They provide the liquidity and financing to keep corporates humming along. Consequently, it is vital for corporate decision makers to monitor and understand shifts in the investor landscape. Decisions that improve the risk-adjusted returns of a business are rewarded by investors, and investor perception can influence everything from capital allocation strategy to the day-to-day operations of a company. But not all investors are alike. The appetites of equity, debt, preferred/hybrid, long, short, convertible, active, passive, retail and institutional investors can vary greatly. Each plays a role, and the companies that understand these different roles can better manage relationships with investors.