Is the UK public market truly a dinosaur, or is it on the cusp of a major renewal?

In this essential episode for aspiring and newly appointed Non-Executive Directors, host Ralph Grayson is joined by Charles Hall, Head of Research at Peel Hunt. Charles, a leading voice in the market reform debate, delivers a candid and incisive analysis of the forces shaping UK capital markets, critiquing the "erosion of public listings" and the over-reliance on private capital.

He argues passionately that public markets are a "public good" that pay more tax and offer "permanent capital". They dissect structural challenges like the growth of passive investment and explore the crucial policy changes needed in pension fund allocation to keep successful, high-growth UK companies listing at home. Despite a recent "shift in sentiment" and strengthening IPO pipeline for 2026, Charles warns the UK cannot be complacent in the fight to retain its leading businesses, noting the "fundamental flaw" that sees the UK export over £1 billion every year in pension capital overseas.

This is a must-listen for board members seeking strategic insights on investor engagement, valuations, and the UK’s global competitive position.

• (00:00) - Welcome to The Boardroom Path
• (02:55) - Charles Hall's Career Journey
• (05:06) - Engaging with Investors
• (08:42) - Peel Hunt's IPO and Corporate Services
• (11:19) - Global Macro Outlook and UK Strategy
• (14:03) - Challenges in UK Public Markets
• (18:14) - The Importance of UK Equity Markets
• (24:28) - Innovations and Future of UK Capital Markets
• (35:52) - The Role of Pension Funds and Scale-Up Capital
• (48:30) - Positivity in the UK Public Market

Charles Hall: Head of Research and an experienced Consumer sector analyst at Peel Hunt, one of the UK's leading investment banks. He leads an operation covering over 400 UK small and mid-cap stocks and is a widely recognised advocate for the revitalisation of UK capital markets and pension reform. He was the top-ranked analyst in the UK Mid & Small cap market overall in the 2021 Institutional Investor (Extel) Survey for the fifth consecutive year.

Ralph Grayson: Ralph Grayson is a Partner in the Board Practice at Sainty Hird & Partners, bringing extensive experience in board-level recruitment, assessment, and advisory services. With a deep understanding of the corporate governance landscape, Ralph specialises in guiding senior executives as they transition into impactful boardroom careers. His thoughtful approach, combined with a passion for developing effective leaders, enables him to facilitate insightful conversations that equip aspiring and newly appointed Non-Executive Directors with the tools they need to succeed. Through The Boardroom Path, Ralph leverages his extensive professional network and expertise to empower listeners on their journey into the boardroom.

Episode Insights:

• Analysts possess a deep, privileged pool of knowledge on strategy, competitors, and disruptive technology that boards should tap into, going beyond mere share price maximisation.
• Public markets are fundamentally beneficial for the UK economy because listed companies pay more tax (corporation tax, dividends, stamp duty) and are held to a high degree of honesty and accountability.
• A major structural problem is the extensive export of domestic capital via DC pension schemes, which invest predominantly in global, often US-listed, equities, starving growing UK companies of scale-up capital.
• Listing in the US is "definitively not nirvana"; for most UK companies, they would be "minnows" and would not automatically gain a higher valuation or access to passive fund flows.
• Public listing provides "permanent capital" that never has to be refinanced or repaid, enabling companies to take a long-term view unmatched by the cyclical nature of private markets.

Action Points:

1. Re-evaluate Investor Engagement Strategy: Boards should view their analysts and investors as critical partners who provide robust challenge and market-wide strategic insights, not just capital sources. Schedule formal sessions to tap into analyst knowledge on sector trends and competitor strategy beyond quarterly results.
2. Advocate for Domestic Capital: Engage with policymakers on the urgent need for pension reform that incentivises UK pension funds to allocate more capital domestically, as currently DC schemes allocate less than 5% to UK equities. Highlight why investing in UK growth companies is a "win-win-win" for pensioners, funds, and the UK economy.
3. Scrutinise Private Takeover Offers: When faced with an offer, look beyond the immediate valuation to the underlying cause: poor capital flows and market sentiment. Understand that reversing capital outflows would quickly improve domestic valuations and reduce the perceived "bargain" available to overseas acquirers.
4. Embrace Transparency for Trust: Recognise that the constant scrutiny and glare of publicity from analysts and journalists is a key strength of public markets, creating a "high degree of honesty". View this transparency as a vital governance strength that prevents systemic issues seen in less-scrutinised private entities, such as Thames Water.
5. Foster Entrepreneurial Culture: Work to create a culture where entrepreneurs feel it is a "privilege to be listed in the UK". Actively encourage successful founders to reinvest their wealth domestically in the next generation of UK growth companies, fostering a 'go again' mindset.

The Boardroom Path is the essential podcast for aspiring and newly appointed Non-Executive Directors (NEDs) navigating the journey from executive leadership to the boardroom. Hosted by Ralph Grayson, partner at Sainty Hird & Partners, each episode offers insightful conversations with industry leaders, seasoned board directors, and governance experts. Our guests share practical strategies, valuable perspectives, and actionable advice on how to effectively transition into board roles, maximise your impact, and build a rewarding NED career. 

Subscribe now, and take your first confident step along The Boardroom Path.

Learn more about Sainty Hird & Partners at saintyhird.com.

The Boardroom Path is produced by Story Ninety-Four in Oxford, UK.