A Day in the Life of an IR Professional

Roadshows

Roadshows are investor meeting events where an itinerary is put together to facilitate a series of virtual or physical investor meetings (1 on 1, group or both). They take place over several days, over a number of different locations. IR equity roadshows can either be event specific (results or other announcements) or non-specific (to increase general investor knowledge and interest ahead of an IPO).Debt IR roadshows also can be deal specific (company is coming to market with a bond issue), or non-deal specific (to create interest in a company’s debt programmes). A roadshow is also undertaken as the precursor to a formal book building exercise to gauge general investor appetite and to set transaction parameters. Virtual roadshows and investor events have now become prominent as a consequence of COVID and have been well received.

Structure and reporting lines around the IR function 

There is still no prescribed model for IR structure and reporting lines and this will vary from company to company, depending on size, complexity, management commitment and whether the business has equity and debt IR to consider. IR function can exist as a specific team in its own right or as separate equity and debt IR teams within the overall corporate hierarchy or it can sit within another function (finance, corporate communications or treasury). 

Evolution of IR structure and reporting lines

Initially IR was about communications so it sat as part of a corporate communication team. But as mentioned earlier in the series, it has become more technical with a greater emphasis on finance knowledge. This led to IR sitting as part of the overall finance function, with perhaps a dotted line to corporate communications. In other contexts, IR may sit outside of the finance function with connectivity to group communications and the CEO’s office. Alternatively, it may even sit independently with a direct reporting line to the CEO’s office and connectivity to the finance, treasury, communications and PR areas. 

What are the skills needed in equity IR and debt IR ?

Despite a lot of common skills needed in both Equity and Debt IR, there are different requirements of investors and the technical knowledge levels applying to each field. Debt IR people tend to come from a treasury or capital markets background whereas equity IR people tend to come from communications, finance, accountancy or buy or sell side analyst backgrounds. In any event an IR person needs to ideally have credibility, good collaborative skills, authority and presence, a comprehensive understanding of the business and of financial reporting, presentation skills. In summary, the IR professional brings a multidisciplinary skill set to the role, and is a Jack or Jill of all trades.