Why use Phoenix-IR/ an independent?

Unprompted by us, a VP of IR at a $40bn industrial client recently answered that question (on the NIRI Community E-Forum – February 2025)

“For context, I’ve been doing NDRs in Europe for about 20 years and have seen the market there change dramatically over that time. I have worked with midsized and bulge bracket firms on NDRs there during that time and my company’s market cap has risen from $2B to now +/-$50B. The sell side faces worse pressures in Europe vs the US as it relates to getting paid for corporate access and being on clients’ broker lists, complying with MiFID2 and the declining economics of the sell side. Over the past 15 years we have experienced a notable decline in the quality of our European NDRs across the broker spectrum (bulge bracket too) because of this, despite our market cap increasing and broadening appeal. It is not the brokers fault and it isn’t like they are not trying their best, it is the pressure and model of the industry. The brokers are all going to swear that they have the secret sauce and you will have a fantastic trip, but I would say it is exaggerated. And once you start down the path with one, it is very difficult to pull the plug to try to work with another one if the meeting calendar is not shaping up to your liking.

Don’t get me wrong, depending on your market cap and industry, you may have a decent trip, but it is nothing like it used to be. As a result, we stopped using the sell side for Europe NDRs 4-5 years ago. We have been working with Phoenix-IR during that time and the quality of our meetings/trips have been phenomenal – no sell side firm can come close to matching it. The downside is that you have to pay them a fee for their services and expertise and cover all of the car services and other expenses, which the sell side would often cover. But they have great networks and are fantastic to work with. If you are taking the time and money to fly over and spend a week there and are serious about building a European investor base, it is a great ROI and a great use of your team’s time. I would highly recommend them. Something that is worth considering as you plan your European NDR.”