U.S. Investors Are Shopping For European Equities – Is Your Company On The List?

After years of under-allocation, European equities are back in focus. Is this a trend or an aberration? While early performance and fund flows may appear momentum-driven, investor behavior suggests this may be more than a temporary rotation. Across the 550+ North American institutions we engage with, each managing over $5B in AUM, many are actively evaluating European companies amid a reassessment of global equity exposures. This due diligence phase is critical: before capital is deployed, investors need conviction. The companies they’re meeting with today are the ones most likely to be on their buy lists tomorrow.

^{(1) Source: ETFbook, as of 31 March 2025. (2) Source: FactSet Research Systems.}

"This isn’t a short-term trade — it’s a structural shift in how allocators are thinking about geographic diversification. U.S. institutions are increasingly viewing Europe not as a drag, but as the source of alpha.”

– Portfolio Manager, U.S.-Based Global Fund

Companies That Engage Early Will Be First in Line for U.S. Capital

Institutional capital moves gradually, and early visibility is critical. As investors refine watchlists and begin due diligence, companies engaging now through roadshows and targeted outreach are best positioned to attract capital. This is not a short-term shift, but rather the start of a broader reallocation cycle. Competition for investor mindshare will surely intensify, and companies that act early and strategically will be best positioned to benefit.