Making the Switch: From Corporate Broking to Investor Relations
In this quick-fire interview, we hear from the founder of executive search firm Horgan & Partners on the transition from corporate broking to investor relations. Claudine Horgan outlines the similarities and differences, transferable knowledge and skills, and how corporate brokers can best position themselves for a role in IR.
How common is the transition from corporate broking into investor relations today?
The transition from corporate broking into IR is a trend that continues to grow. About one third of IROs have worked in investment banking, equity research or have accounting experience. The most common feeders into the sector tend to come from Investment Banking, Equity Research/Sell-Side, Corporate Finance, M&A, and Big 4 firms.
What’s driving the increased interest among corporate brokers in shifting into investor relations roles?
Corporate Bankers are increasingly attracted to IR roles as it often offers more strategic focus within a corporate than perhaps a large bank would. They are able to leverage their existing skills and financial literacy. Roles often come with great market visibility and opportunities to develop profile. It can be a great pathway to a C-Suite career and provides a greater opportunity to shine as an IR Head than they would perhaps achieve if they remained in banking. Also, there tends to be a better work/life balance with less travel so it can be more conducive to family life.
How should candidates reflect on their motivations to ensure IR is the right long‑term fit?
Candidates should ask themselves if they really want to help shape and communicate a company’s strategy or if they prefer transactional and deal-orientated roles with quick wins and financial rewards instead. Do they enjoy communicating and helping to shape as opposed to executing? Do they like long-term or short-term goals? Are they comfortable being asked probing questions and being scrutinised externally? Are they comfortable being in the public eye and being the external point of contact for an organisation? Are they passionate about the company and the sector it operates in? Are they good under pressure, discrete and strong communicators? Candidates need to be sure they will thrive and enjoy what will most likely be a longer-term career move.
From a hiring perspective, how should corporate brokers position themselves when approaching IR opportunities?
Strong candidates should be able to demonstrate strong communications skills, and be able to provide strong examples gained in strategic scenarios e.g. M&A deals, capital raisings etc. They should be able to translate their banking/finance skills into IR ‘language’. Demonstrate that they are comfortable in the spotlight and can remain calm under pressure. Show why they are genuinely interested in the company and sector, and show why they will be a good fit for the culture of the organisation.
What are the most common challenges candidates face when transitioning into investor relations, and how can they prepare for them?
It’s important to be aware that IR may have a longer-term focus, as opposed to fast-paced and deal orientated quicker wins seen in banking.
Be ready for this shift in focus and pace. The role is more one-dimensional in that you are focusing on one company’s story as opposed to an entire sector. Become comfortable communicating with your CFO, CEO and the Board. It’s important to remain calm under pressure. Be prepared for the possibility of crisis management and heavy scrutiny. Although the pace may be different, the role has its own challenges and having the right mindset is important. As with any transition, think through a potential move thoroughly and make sure it’s right for you.
What final advice would you offer a candidate form corporate broking considering the move into IR today?
It’s important to have some external visibility and be known in the market for being accurate and competent in your current role. Have a clear idea about why you want to move into IR for the longer term and be able to explain that clearly. Be ready for a change in focus and have an adaptable mindset. Finally, get out and network!
About Claudine
Claudine is a Senior Executive Search Consultant. She founded Horgan & Partners Ltd in 2010 after a successful career in the City and focuses on placements into Investor Relations, Investment Banking, Hedge Funds and Asset Management firms. Prior to this Claudine spent over 15 years in Equity Sales working with some of the City’s largest investment banks. She started her career with Lehman Brothers London and Milan, Salomon Brothers London and New York, Société Générale and Commerzbank. In addition to her Search career, Claudine holds two Non-Executive Directorships. She lives in West London with her two sons.