Prior to starting my work in Investor Relations over 25 years ago, I had spent time on both the sell-side as an investment banker and the buy-side managing a micro- and small-cap hedge fund. In both of those roles, an essential part of my job was to keep a pulse on the industry.

This meant interacting with as many people as I could. The finance world is a complex ecosystem full of interconnected pieces with many players. Navigating it is challenging, but it can be made easier by leveraging the experience of other people operating in different areas with their own expertise. My ability to succeed early on was dictated by hard work and attention to detail but also my network, something true for many industries but indispensable for a banker or investor.

When I began my career in IR, I brought this same mentality. A lot has changed in the best practices of the Investor Relations industry over that time, but I believe the core of what drives a successful IR program then still applies in today's market.

To ensure success in Investor Relations, a company needs to tell the right story to the right audience. Although there have been tremendous advancements in developing the right story for an organization (a topic for another post), one of the biggest challenges in today's IR profession is getting in front of the right audience. Investor targeting and outreach remain critical components of an effective IR strategy.

In our digital age, with its myriad channels of communication, I believe that truly successful IR still hinges on building and maintaining relationships. Investors today are inundated with demands for their attention — emails, texts, conference invites, social media feeds, online forums, etc. How do you cut through all the noise?

Relationships.

Any good IR professional needs to build authentic relationships to effectively reach and engage the right audience for their clients.

Since the onset of the pandemic, we've observed a concerning trend in IR moving away from relationship-building. The shift to virtual roadshows and meetings, coupled with limited in-person conferences, has significantly reduced opportunities for IR professionals to build and expand buy-side relationships.

All is not lost, but there does need to be a serious, thoughtful change devoted to ensuring we don’t give in to “the new way of doing things”. My suggestions are simple, but they do require effort.

Here are three ways an IR professional can build and maintain investor relationships in today's landscape:

1. Attend investor conferences in person.

This provides a unique opportunity to engage with hundreds of like-minded investors in one venue. Sit in on one-on-one meetings, attend presentations, and participate in social events. Each interaction is a chance to be remembered, to connect, and to build relationships.

2. Organize and attend non-deal roadshows.

While this may seem old school, it remains an invaluable opportunity to connect with investors face-to-face. Learn how they think, understand their due diligence process, and gain insight into the motivations behind their questions. This knowledge is crucial for tailoring your approach and building relationships.

3. Pick up the phone.

In an era of digital communication, I'm often surprised by how infrequently IR professionals make direct calls to investors. While respecting busy schedules is crucial, a well-timed, well-prepared call can be an excellent way to initiate or strengthen a relationship. Remember, it's an investor's job to learn about companies, and you can be both professional and personable while building relationships.

At its core, the objective of the investor relations profession is to effectively communicate an organization's value proposition and growth opportunity. By prioritizing relationship building, you can more effectively approach the right audience and truly strengthen the “Relations” in Investor Relations. In doing so, we not only enhance our professional networks but also drive better outcomes for the companies we represent.

At Gateway, we practice what we preach. Our upcoming annual investor conference is a testament to the power of relationships in IR. The event, being held September 4-5 in San Francisco, showcases our extensive network of existing connections while providing a platform for building new relationships with investors and analysts. It's also an opportunity for our clients to engage directly with the financial community, fostering the kind of meaningful interactions that are at the heart of effective Investor Relations.

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