Global stocks in lobbying, credit data and exchanges

A portfolio manager is pointing to three global companies he believes are positioned for durable growth, supported by political consulting demand, proprietary credit data and critical European market infrastructure.

BNN Bloomberg spoke with Fabian Renauer, portfolio manager at Canoe Financial, about Public Policy Holding Company, Equifax and Deutsche Boerse, and why he sees long-term secular tailwinds and attractive free cash flow yields across the three names.

Key Takeaways

• Public Policy Holding Company owns U.S.-focused lobbying and corporate communications firms, serving roughly half of the Fortune 100 and a quarter of the Fortune 500 in a fragmented, reputation-driven industry.
• Political consulting demand tends to rise during periods of uncertainty, and the company’s recent Nasdaq listing could increase investor awareness of a business trading at about a seven to eight per cent free cash flow yield.
• Equifax operates in a three-player global credit bureau oligopoly and leads in digital income and employment verification through its proprietary Work Number database.
• Elevated U.S. mortgage rates are weighing on credit bureau activity, but a shift toward automated verification and a potential decline in rates could support earnings recovery.
• Deutsche Boerse controls critical European derivatives and clearing infrastructure, benefiting from network effects, regulatory barriers and secular growth in energy hedging and rising debt issuance.

Read the full transcript below:

ANDREW: It’s time for Hot Picks, and we’re zeroing in on three global ideas. Our guest has Public Policy Holding Company as a top selection. He sees an attractive valuation for this U.S.-based outfit that is big in the lobbying business. We’re joined by Fabian Renauer, portfolio manager at Canoe Financial. Thanks very much for being with us, Fabian.

FABIAN: Thanks for having me.

ANDREW: PPHC — so they make their money from lobbying, in part?

FABIAN: Yes. Very refreshingly, this company has nothing to do with AI, which is nice in this environment. It’s a holding company that owns several leading lobbying firms and corporate communications companies. They’re primarily focused on the U.S., as you mentioned. The way to think about them is they’re essentially a consultant that helps clients navigate the political landscape.

Politics is an area of major risk and opportunity for companies. If you think of businesses like Google, Cigna or Meta, they want to work with a well-established provider that is reputable and has been around for a long time. That’s essentially PPHC. They serve about half of the Fortune 100 and about a quarter of the Fortune 500, so it’s as strong a client base as you could ask for.

What we like about the business is that it’s an industry that will never go out of fashion. It has been around for a very long time and will likely always be around. The industry is still very fragmented, so there is a lot of room to continue to grow, and political uncertainty actually benefits them. In an environment with heightened political uncertainty, demand for their services increases.

The attractive part is that the company trades at what we see as a compelling valuation for such a high-quality consultant, at about a seven to eight per cent free cash flow yield. The reason is that it’s still a small business and relatively undiscovered. It only recently dual-listed on the Nasdaq. We think it’s a matter of time until more investors take note of the success PPHC has been having.

ANDREW: And they just went public in the U.S. — not a huge deal. They raised about US$50 million.

FABIAN: Yes. They had been public in the U.K. since 2021 on the AIM exchange, which was not ideal given they are a U.S. company operating in a very American industry. They were relatively under the radar in the U.K. They reached sufficient scale to list in the U.S. on the Nasdaq. We think that will elevate the company’s profile. The share price has not kept up with the operational success they’ve been having. They’ve grown significantly, and we see it as a great business.

ANDREW: Equifax — a big global credit bureau and also important for employers verifying the history of applicants.

FABIAN: Correct. It’s one of three global credit bureaus. If you or I apply for a mortgage, credit card or auto loan, the lender needs data to verify our creditworthiness. They go to the credit bureaus and obtain a credit report to use for underwriting.

Equifax also has an income and employment verification business called The Work Number. If an underwriter or government agency wants to verify a consumer’s current employment status, they access the Equifax database.

What these businesses have in common is proprietary data. On the credit bureau side, there are only three scaled players: Equifax, Experian and TransUnion. On the verification side, it’s even more concentrated. Equifax is by far the market leader.

We like the verification business because it has a long runway for growth. A lot of income and employment verification is still done manually, by phone. Accessing a digital database is far more efficient, with a clear return on investment.

On the credit bureau side, Equifax has a significant mortgage-related business. The recent rise in U.S. mortgage rates has hurt volumes, so earnings are currently depressed. When mortgage rates eventually decline, there is meaningful revenue that could return to the business. Today, the stock trades at roughly a five per cent free cash flow yield.

ANDREW: And the final idea, Deutsche Boerse. They operate a major exchange, and there have been concerns that AI could disrupt parts of the data business.

FABIAN: They are the leading exchange group in Europe, but they are less a traditional stock exchange and more a derivatives exchange, clearing house and settlement venue. They own critical market infrastructure that tends to concentrate around one or two major players.

There are strong network effects in this industry. Regulators are cautious about new entrants because the infrastructure is so critical. For example, if you want to trade certain European futures contracts, there are very limited providers.

The data business comes directly from their exchanges. It is proprietary transaction data that only they can sell. That is different from companies that aggregate publicly available data, which may face more AI-related disruption risk.

We like the durability of these assets. They are very difficult to displace and benefit from several secular growth drivers. The European Energy Exchange benefits from increased hedging needs as Europe shifts toward renewable energy, which can increase price volatility. Regulators are also encouraging more derivatives to be centrally cleared and exchange-traded, which supports growth.

Additionally, rising government and corporate debt levels in Europe increase activity across the capital markets value chain, which Deutsche Boerse monetizes. Overall, we see durable assets, long-term growth and a valuation of roughly a six per cent free cash flow yield, partly reflecting broader uncertainty and misconceptions about the business mix.

ANDREW: We’ll have to leave it there. Thank you for joining us.

FABIAN: Thank you. I appreciate it.

ANDREW: Fabian Renauer of Canoe Financial.

—

This BNN Bloomberg summary and transcript of the Feb. 25, 2026 interview with Fabian Renauer are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.