S02E14 Crown Castê: Exploring Investment Strategies for SMEs with Nick Tolchard

Welcome to Crown Castê, your financial literacy podcast for small businesses. We publish inspiring, insightful conversations with investors and stewards of capital.

In this episode of Crown Castê, we sit down with Nick Tolchard, a seasoned investor and Deputy Chair of the Investment Association's Trade and Investment Committee, to explore investment strategies for SMEs and the evolving landscape of capital allocation. Nick shares his journey in the financial world, insights into raising capital, and the importance of governance, strategy, and industry trends in building successful businesses.

The conversation begins with Nick reflecting on his multi-decade career in asset management, from managing fixed income investments to guiding businesses through the nuances of public and private capital markets (1:07). He shares how his experience working with institutional investors and retail advisors has shaped his approach to supporting SMEs in their growth journeys.

A major theme of the episode is fixed income as a tool for capital raising. Nick explains how fixed income, particularly corporate bonds, can become an attractive option for SMEs as they grow and mature. He also highlights the role of governance, balance sheet strength, and strong boards in attracting investors (4:29).

Nick provides actionable advice for SMEs considering public listings, emphasizing the importance of long-term strategy, governance, and choosing the right market for their needs. He explains why London, with its deep pool of investors and robust governance frameworks, is often a preferred destination for businesses looking to scale (10:06).

The discussion also explores the pros and cons of public vs. private markets, with Nick explaining the rising interest in private markets due to their flexibility and alignment with specific investor expertise. He shares why persistence, networking, and engaging with supportive ecosystems are crucial for businesses at any stage of capital raising (14:38).

A standout segment is Nick’s analysis of ESG investing (Environmental, Social, and Governance) and its growing importance in the financial world. He discusses how SMEs can differentiate themselves by demonstrating measurable impact, whether in environmental performance, financial inclusion, or societal benefits, to appeal to ESG-focused investors (18:41).

Looking ahead, Nick highlights key industry trends, including the increasing role of AI and data in asset management and the potential for new sectors like FinTech, AgTech, and sustainability-focused ventures to attract capital. He emphasizes the need for SMEs to stay agile, data-driven, and future-focused in their approach (21:13).

Be sure to like, share, and subscribe for more insights from Crown Castê, your go-to financial literacy podcast for SMEs.

Where to Connect:

• Find Nick Tolchard on ⁠LinkedIn⁠.
• Learn more about the Investment Association and its initiatives ⁠here⁠.