Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights on the trajectory of the compensation ratio and the path to achieving a level below 60%? A: Timothy Lalonde, CFO: Improvement in the compensation ratio is gradual, occurring over the near to medium term. Last year's comp ratio was 67.6%, and this quarter's improvement is 160 basis points year-to-date. We're balancing firm growth with comp ratio improvement, considering the intense competition for bankers and associated costs.
Q: Could you give some color on the size of deals in the pipeline and the appetite for large-cap M&A? A: John Weinberg, CEO: Our pipeline includes deals of all sizes, and activity is robust. There will be sizable deals, though some may be impacted by the regulatory environment. We expect high activity levels across all size ranges as the market recovers.
Q: Can you update on the cadence of the advisory recovery and potential election impacts? A: John Weinberg, CEO: The recovery is gradual, but our backlogs are robust, indicating high activity levels. The election may cause short-term hesitancy, but we don't expect it to impact medium-term merger activity significantly. Regulatory environment changes post-election could affect larger deals.
Q: How is the restructuring business performing, and has the start of rate cuts shifted client dialogues? A: John Weinberg, CEO: The restructuring business is very active, focusing on liability management. Rate cuts are not expected to slow down advisory assignments. We anticipate strong performance into 2025.
Q: What is the growth outlook for the private capital advisory business, and is there a need for more talent to drive growth? A: John Weinberg, CEO: The business is performing well and growing, with strong backlogs and activity levels. We are leveraging synergies across advisory services for sponsors, providing comprehensive advisory approaches, and expect continued growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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