HLI - Earnings call transcript Q1 2023

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Operator

Good day, ladies and gentlemen, thank you for standing by. Welcome to Houlihan Lokey's First Quarter Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note that this conference call is being recorded today, July 28, 2022. the to turn Lokey's Crain, now Counsel. General will call Christopher over Houlihan I

Christopher Crain

and By section. XXXX hello have operator in the you, Thank everyone. at website our can found www.hl.com quarter Houlihan which Lokey access Investor now, first fiscal release, year Relations earnings the be on to should everyone

anticipate, such investors other statements, the will future include words phrases risks forward-looking Before we not we performance. cause will, remarks, use should risks materially our are regulatory filed filings today formal recent These as usually refer interpreting on with condition. and therefore, quarter caution detailed XX is need could to by SEC These financial discussion that numerous the future forward-looking it And and XX-Q which that when differ actual uncertainties the should to impact to relying when ended discussion June from similar all you or begin our you review them. the filings, expect. to guarantees what remind results We exercise the are results of to for of Form statements of including more for are identified everyone and we that XX, operating encourage expect, a statements. our could We SEC. of our subject

and directly A non-GAAP measures these discuss questions. that, hl.com or the financial accordance then believe to for we some investor They isolation is call Alley, reconciliation call remarks GAAP. which we have to release financial open Lindsey will substitute company. we will presentation in can in I'll measures, considered today call GAAP most to Officer; provide Chief With Houlihan measures These measures Lokey's prepared on performance. our company's the we our available our Chief financial Officer and should evaluating a of over the in the Scott. Financial useful today's the will not with comparable website. During the Executive as Hosting of results the Scott Beiser, opening call turn earnings in be be and

Scott Beiser

Christopher. with ended quarter our $XXX per to first fiscal revenues call. quarter million everyone the you, first share year XXXX record We and of earnings $X.XX. Thank Welcome of earnings quarter

are macro We with environment. these light in of the challenges pleased the results, of in particularly ongoing some

into business, Throughout first our we impacting However, a and impacting higher and declined fiscal improving include our are revenues comparable revenues would experiencing quarter to them we complete headwinds our modestly Corporate continuing than XX%. are picture, XXXX, restructuring Valuation and Finance Advisory while last if had more on business as approximately reported have results, Financial our revenues give our X, market are our financial we acquired if our second year's opportunities. quarter, GCA's that April

volume and or Our sectors effect slide sentiment headwinds Corporate clients market Finance of the transaction seems couple this both remains along we healthy predict and new to same recession lowering exhibit quite performing we the like our seeing with into over us continues market significant strong of timing elongating seen the valuations fiscal for having have business and our geographies, for is level quarters. experience Financial activity Regardless these market to transactions, of the before continue the economy could that selected build FEA's on where cut Advisory in conditions M&A and next before. suggest are a may and we Corporate continue seeing backlog, share by high The that the a to business temporary. We never improving that revenues prospects. fact results. time are It business, Valuation current in That directions, Finance are quality a a of have potential takes conditions clients of quarters close difficult Nonetheless, continues being in deferred transactions couple market modest trends to we to the may to confident and fees. corporate a in also well. quality time, market which At are on of are revenues first grow. the are at of levels growth quarter. current our year-over-year closing that recorded the solid the reputation a said, to continue suggesting in XX% increase impact activity we growth

in conversation, are a diversification stages an restructuring. typical activity Based of cycle historically in meaningful enabled strategy. for is For which lines, despite and FEA quality the to Today, the market Restructuring, count increase our nearly its to environment has current business contractual highest in performed the these business to than our diverse restructuring weaker better remains solid progresses we of restructuring starts the given transactions. team Financial quarter, important and execution least record head headwinds. growth finally the remains of us with on work and stronger service first in mix in component M&A increase number believe months. XX Finance our to to Corporate volatile revenue verbal firm's The of of markets. offering our an Financial overall engagements, close initial engagements, verbal service in we levels engagements business

and While impact in have Today's improving engagements across XXXX. broad the these have anticipate restructurings will in based results we our Asia been financial verbal on these fiscal XXXX results close until versus point in up opportunities to fiscal limited industries and opportunities transactions, US. greater new translate Europe if this

and importance the Europe believe closely with catches positioned or we US size are well Asia. if up opportunities the when this we market, market monitoring of we and are Given and

Managing we promoted to ended in Turning to quarter the Director. growth, June XX XX employees internally

externally Managing also hired We six Directors.

to front, we are a are selective our On opportunities and pursuing believe shareholders. are to strategic acquisition and model we the remain fit business accretive

I'm decades. market closing, we in be five competitive of our banking successful and clients to our it so will increase thrilled pipeline making current build can well to call and the over with half-century. our for conditions thank the look and part pleased that, have if next pipeline In acquisition over proud this Lindsey. employees, with Houlihan celebrating this shareholders our turn Lokey believe are of what I all Investment become. year. in to this employees how I'll Collectively, our worsen. we done opportunities is our has firm their are firm to want XXth anniversary We financial quite only the of forward we in And

Lindsey Alley

up last year. We Finance fee million the decreased XXX to closed quarter the XX% to Revenues Scott. you, $XXX our transactions last were transaction on in same the compared for in period Thank Corporate year, when average quarter closed same but deals quarter. compared the this for quarter, XX

quarter until deals a to of were closed Lokey's for the quarter, increased the a the decrease reminder, comparative XX average compared transaction since approximately on quarter. closed last million did XXXX same year. ’XX, fee include period Financial revenue quarter our the $XX million quarter. June XX% revenues As quarter for year for for the of did purposes, and for Restructuring that GCA $XXX October the We in same GCA revenues in not from transactions XX the last complete Houlihan XX, we acquisition ended not for

increase a we of in as quarter, fiscal from $XX the to revenues same year year. fiscal expected, quarter had several Scott period We ends up that million XXXX to that that lines for headwinds XXX as second FEA Financial same were XXX the In period March, transactions quarter the were year in last momentum all last service and the the during enter of see during continues our fourth quarter had Valuation across despite in events to first fee mentioned. XX% we given fiscal good close compared quarter has ending This close year. growth quarter and expected the the XXXX. Advisory almost

Turning our last versus year. the compensation expenses, were for million for same $XXX first to expenses period the quarter $XXX million adjusted

was $X.X for Our million payments certain to deferred only retention acquisitions. adjustment related

the period was first year. Our adjusted for equal the last to same XX.X% expense compensation quarter, ratio

non-compensation year's which increased and in-person GCA ended expenses. entertainment Last work in-person comparing increase this million Non-compensation we not year's include when some XX, non-compensation a June does GCAs first approximately that quarter. quarter our our as expenses have was as Our training travel, expense to led of other $XX million, of meetings, first to increased quarter. and bankers in for meals each This expenses expenses of of were conferences. increase an travel included result adjusted the non-compensation significantly for expenses expenses year's as quarter XXXX related last have the non-compensation also quarters, two increased operating in to adjusted $XX the similar last which and

estate technology an non-compensation inflation. quarter categories all in increased increases see some as and the investment, to result cases the in year. in information X.X% adjusted ratio non-compensation continue last to for real of in resulted travel, same a expect XX.X% quarter We versus of of expense and expense This

acquisition For transaction. the vast majority $XX the of amortization, to our non-cash, related we related amortization quarter, non-compensation which in adjusted million the expenses, of out was GCA

elevated levels expect acquisition this through fiscal We XXXX. year significantly amortization of relating to

as expense our $XXX,XXX a in to expense expense last million and year. of non-cash related same part increased the other to acquisition. quarter the adjusted and revaluation out the Our of other that income of of $XXX,XXX adjusted assumed was of versus an for We income approximately income warrant period $X.X approximately GCA a

between effective quarter to this long-term rate tax tax we our our of and audit. We result had out a during we rate, adjusted GAAP XX.X% for same two the the compared adjusted had out a relating effective maintain we was vesting an tax to a rate adjustments of last tax quarter. effective position We of range received to Our adjusted XX%. first for XX.X% benefit year. the the state received uncertain as reversal our for We in of our tax and quarter XX% quarter stock effective that the benefit we rate our

Turning to the and uses balance cash. of sheet

million had As end and of at securities. $XXX cash equivalents we investment unrestricted and the quarter approximately

year our in of year-end to In a XXXX approximately those sought bonuses share in of fiscal we first our position XXX,XXX we we to million quarter, program. associated $XX.XX quarter at new with quarter, $X.X shares May. Our first year issue cash repurchase our this compensation. declined we the repurchase net as shares XXXX the Historically, part our in of whatever order we year have employees dilution Also compensation to as of significant part as an throughout in to per approximately offset issued employees paid shares. portion shares the fiscal price share average May repurchased

be the stress, we of that we times increased more of for opportunistic can GCA conservative and acquisition cash, half in to during operator, the reduced the of belief open share of may in our have this size activity, the the be first to that, repurchases in year. Given amount line questions. our due M&A an we excess our potential With

Operator

UBS. we first And Brennan Instructions] to will [Operator Thanks. Hawken go of

Scott Beiser

for afternoon. you're Lindsey. Good taking Thanks questions. my and well Hope Scott

Scott Beiser

Brennan. Hi,

Scott Beiser

you improving environment during remarks Just wanted Scott, comments to made for restructuring, Asia. Europe out, about an and and your start prepared to in restructuring spoke some particularly

think of there view you point outlook probably make economy, you could but based So historical depend is think we based a of would kind for you understand I and you -- an what do to -- outlook today comparison? that trajectory lot that consensus on the upon Is that could the what there expecting? see going today, be the period to a the a can what opportunity the on fair you what is of of

Scott Beiser

we've quite larger for the today some been it always has opportunity previous been in Well, time, said has I periods. think than

any might've seen, of during there much indebtedness more bank of lot amount a is just to think had, due happened total probably period the companies coming We is leverage what we've they companies to greater of able stall than or the especially were with Just just out leverage. central COVID, any intervention. difficulties

ago, interest Restructuring. ongoing And these economy, play in But stress inflation we more years prospects rates, had as now. have Financial so, of while think in which clearly a many improve would normal probably bit coming And Europe and one Asia. et some two mentioned we're, the seeing difficulties for distress in just they're higher obviously, a into we companies, will or cycle cetera,

will very this we So moment. probably And and stage but and see more in these sharp of take could like duration the the distress of this at period lengthy recession. said, saw some that period current the produce are juncture difficulties that of now conversations feels kind very into we a have financial short although volume for some previously clearly we the companies time a level up. decline at COVID entered it actual the as I some in of a in in moment, are of But sizable the results, great or downward that saw before don't longer just

Brennan Hawken

helpful. And healthy to slowdown that Finance release also it new in then the activity there despite Okay, business. that's M&A. business Corporate The said global gears pointed switching a was fact the to

So idea billion, just you square resilience is activity? help Corporate maybe more or the $X that. more the if the could under that deals there's maybe non-M&A resilience about pickup in Is advisory in Finance business in

Scott Beiser

private M&A think I et from across built. placement, geographies do markets, diversified I funds different very cetera. it's traditional have we've diversified whether diversification away across sectors, what believe very partly now, some capital industry we're that's and

than continued increased that us we're are we in of do At better the a on, commentary ongoing been all has brand lot but of out macro mid-cap is as activity sponsors. we what market by doing, see to on moment, there. deals know well there the volume presence reputation financial think the still working and enable amount financial So that, of do I there's sponsors firm the the of good are level a statistics. that to the think others an I as,

I at were is market, months in sellers they say least six bond now, think this this they're which that but move after to we can stock or I a while, these into it, parity quicker getting wouldn't months that than which where ago. sellers. downturn, and closer when usually of identical into at tend assets, fact call are maybe business to occur, than also terms buyers point, market the how view a five eventually sellers downturns buyers comment better perspectives, move three we're

Brennan Hawken

the appreciate for Thanks it. Really Great. color.

Scott Beiser

Brennan. Thanks,

Lindsey Alley

Thanks, Brennan.

Operator

go James Yaro Sachs. next Goldman to We'll of

James Yaro

my taking questions. Hey. for Thanks

reaching growth quarter. continued So and maybe I'll which see turn FEA, record a robust to to just this really

now You've been growing that in for year-on-year roughly business. at XX% two almost years

talked could be challenging M&A we What's given related? activity backdrop? you've of into As in past, cadence the the in about continue are M&A growth what head to ability a businesses FEA as more this some more that,

Scott Beiser

think growth FEA feel we it's there. about to Yeah, and long-term, mid-term whether we've we very of a out still good business potential got the lot

As the impacted are in by service we mentioned, FEA not as certain environment. components are as of do the much. There market impacting that M&A well, impact lines that happening still the headwinds are nearly but not what's

equal, in people, I that is stay we think out think there All we expanded being if business we've can become think if talented but area. still the conditions we've market faster environment added little market and geographies quarters at. years for And bit that weren't where some of some and into things still grow a grow new great growth we potential in probably we this will it more sector foreseeable at they're are, least continue to plenty for we focused here. the

Lindsey Alley

in M&A is, are we'll in manageable, of and we drop more more FEA the market market into way. in severe but some if a much to the a meaningful think conditions that of I lines see some service product key the more lines And these affected headwinds start Yeah. the

James Yaro

talked increased doing it you over attractiveness of course could deals. about what the if going know in just Okay. saw talk That And your return sense. you if if about attractiveness out that you and when inorganic growth. and -- the I at Maybe of growth just of you some the opportunity has you XXXX think makes lot I the year? turn around perhaps the a this against that's specifically Maybe could priorities inorganic of maybe -- compare point to whether capital had

Scott Beiser

been a talking probably we've of think at companies. to number always a active least decade certain I of for

the platform different times like I than we For their little smaller do better are that than expanded a enable ours on have. ourselves to might when reasons, think a bankers platform platform much companies that that they have get the tougher should that much realized

the needs fit, to good to needs be starts still people a there that good fit. So strategic their conversations, be

a And maybe or always than service industry of any or time across so some or different companies at different incremental the sectors given at more I looking geographies are handful we think handful lines.

James Yaro

so much. Thank Okay. you

Scott Beiser

Thanks.

Operator

Gosalia hear Morgan next of Manan we'll from Stanley. And

Manan Gosalia

good up. fact still all while high-yield not what I equivalent liquidity some year will comments sounds the Hey, give restructuring. healthy on last share and the you're that like of are wanted ratio of were up view appreciate There volume rates of is But the just more a borrowers is I there afternoon. little ramping out seeing. and that that's opportunities follow low, time. on bit it to that distressed done a the given that refinancing

was I you that? comment can if wondering on So

Scott Beiser

with business structure need plan to start I I be what and itself will plan work in their some of today's have. capital and the overlaying tweaked fashion they Then fundamentals start business is company in you their the what or does the marketplace. think

I certain some structure, need type their -- at a capital a management work liquidity changes companies they're just So it's in all in not plans, companies some of restructuring, business need stream. changes potentially think liability really traditional

I you of So, say to, wouldn't is in the slow because amount minds, work. what down restructuring our described going

in the I really company marketplace And it it with start today. how issues. the living to fits think said, does like in the have and you well capital for then I layer structure does what

Manan Gosalia

Sure.

it sectors and companies is tech a side? see? too stack, synergies to there leaders restructuring the if Europe. opportunity to you acquisition the on As for clear or business about additional you appreciate And Asia the it on that, are called talk early consumer? may But companies get the an or be here exposed maybe that I GCA is there given to to you any any that clear follow-up or are problem out there side

Scott Beiser

want broad-based, sector se, might mention. I it's particular think but things a we X.XX I per still So few pretty

know situation You a whole ago. couple years of the crypto exist really didn't

that's So a area. new

are tech the side, acquisition. enhanced I think capabilities because our of GCA on the much both

In more over of clearly so had tech terms companies, point. addition, decade ago, impacted of much their if restructuring. in you lot went at out on last of many a A of more war capital the handful just in the with taken Ukraine has debt in or back this never debt available becomes that out of many than so Europe, type years, of And potential that business most have tech maybe series companies them repeat States structure. the so in

that so, the stress. that there. read say And estate out China and broad-based. [indiscernible]So pretty have know it's yet about In some parts the of can globe all issues itself, to caused I We real industry point I'd far, of a two that's commentary -- been particular certain out we in the US wouldn't property increasing or other it

Manan Gosalia

Great. Thanks so much.

Operator

And we'll Devin to JMP go with Securities. next Ryan

Devin Ryan

guys. you? afternoon Good Thanks. How are

Scott Beiser

Hey, Devin

Devin Ryan

on conversation come M&A to to the Maybe the outlook. advisory back

So, new good business to hear kind activities in. of coming

friction well? issue people that's as the the actually or around of yet just is road? can maybe or most then deals, challenges Are elongation, creating bid-ask about maybe because is closings in seen wide closing, side, a seeing now the down On are the by the that, being guys the other we're you which still creating the deal financing hearing and maybe is just kicking couple seeing off a outlook or just I macro deal and meaningful financing quarters deals spread industry. actually the the And think a into slowdown breaking you of uncertainty kind of

Scott Beiser

something amount even So debt not call I’ll hold a ‘XX, substantial where it ultimately not you seen tell the or and on at we business. whether business hold, saw least permit category. don't you and it in go or go apart what maybe COVID-XXXX ‘XX the contrast, I that in -- yet will of know recession our into fall seeing maybe will really think there. that We're of the Part

sellers. maybe are who are cases not new buyers We seeing many in many as approaching

or that than quickly. convincing think than they lenders, to more more did they have All been are able have little it that is quicker, ask sway So before, what M&A sway for to lenders financial perspective, quarter the of all at the of another we'd but want Buyers you close renegotiation. kind buyer rather the of there's banker's price hold of delays. generally and a before rather causing ask are investment those close things a look I either used to you don't hold to questions, or way, results. bit taking From maybe cause just have month urgency to buyers longer. they just if deals another bit to able Maybe timing more

a longer but going not drop number even ago, of don't juncture months off experienced in deals six taking seen they're to ago. at meaningful months or ago, are we So this a we would continually minor terms just probably just happen, of a we're year think that have three than

Lindsey Alley

in think as category. same the And to of will choppiness occurs start, having we has we're direction into come a to how next if this on the mean, start likely in said going [indiscernible] still move conversation I which past, out market the you're deals and long it. I This Scott really quarter, on-hold depends those

Devin Ryan

Yeah. that capital the then, appreciate for be in markets in the I business, could would there talk And believe, maybe there. just relatively guess need about business how it doing doing can capital more but environment, think like well I backdrop. then, it that complication actually your might the I specifically? perform markets now? services, the intermediate color little there I sounded bit it the interrelated, term was is you this Understood. somewhat And But outlook for is just business over a well. the

Scott Beiser

of amount that out is themselves clients can the a market always us complete make good more conditions for real in Because competitors. is the it complete area, choppiness to but choppy and our capital deals. actually deals actually think they the little long-term, Short-term markets believing mid-term, we been there Yeah. the competition

as easy not it's So somebody to for do financings.

been And away shift we do in. much can or marketplace I from participate being is traditional think lenders. non-bank continually that's more lending the direct to a the there where bank

well. outlook it do probably better ‘XX. doing the much into fiscal Finance it and and larger business think our a Corporate M&A did So And year because just marketplace fiscal basis ‘XX percentage think this in off I is year, actually the clearly I a the stronger than last it's will is I fiscal on of think mostly looks tailed percentage

Devin Ryan

makes sense. that Yeah,

guys. I'll leave there. it terrific. Thanks Okay,

Scott Beiser

Thanks, Devin.

Operator

And we Chubak go for from Wolfe will question the next of Steven Research.

Brendan O'Brien

Good afternoon, is Brendan filling Steven. in this for O'Brien

I So levels? progress things I provide guess trajecting get sense maybe a on as new pace XXXX pace you far activity first, are just to this color to relative from with I we to sense to some the a things encouraging, quarter. current comments last also given was the environment. get wanted want heard compares and of you? just the is as as to how hoping to how last the could current since so quarter how I

Scott Beiser

terms activity, new better. flat in probably the absolute to versus So be business of may June the quarter, it's slightly quarter March

comparing to our not just for the I any XXXX, company that in harder acquisition. us, a it industry. activity for been In was because pre the issue than new calendar has the think So little

business, by was amount in amount today numbers, dollar versus of perspective by amount the XXXX. meaningfully is where So it new dollar up whether --

due acquisition, time two still trying and be same but If level identical very importance the acquisition. it to just periods you GCA the at through strong, size compare of it's the in the not to of

Lindsey Alley

of comments as clearly, though supposedly XX. our we've quarter far even June seen this they're mean, And is then quarter to I reflect I what today think in going. relating so how the

XX, I'd comments July So say the [indiscernible] our as XX days well. reflect of first

Brendan O'Brien

That's very Finance And guess, the again. business on Corporate you. Got helpful. I

in as growth reliance outlook could different Russian how noted global given You arguably is obviously proximity that And restructuring. facing activity war greater seeing as differences weakening between exports. in well geographies you China. the hoping you're in was both across the and significant and Europe traditional on levels discuss to M&A more Ukraine I the headwinds maybe

Scott Beiser

think of the tasks, So States. on versus that, United Having people because of In economy feel two the said restructuring. the acquisition the worse substance because we different I in of and does we Europe than clearly did. have, obviously, M&A part recent quality

once to to partners larger seeing more is combining is side. fact, able number therefore work much presence with tend greater the on larger do and to and than fees more we're the testament much new and Our still our today In And volume transactions that's what I sized sized again achieve. Asia, greater, of before. we've a we in restructuring seen or think significantly potentially have in at point, We good healthy volume United we that for States, either side. Europe the had greater, presence in haven't like And a US just of just speed in our mentioned a we the the as very Asia is strong do on comments Japan this and increased in the restructuring potentials much or M&A seen on well but marketplace market. restructuring bigger we

supply kind economy, to amount fold US relatively doing in it's continue cetera, said, at good the US like I of Europe. terms activity, of only States, we've of activities. still rather And sponsor United interest issues, et continued So see we'll well, we as out. well new how not in US rates, in results to see look to have I When the actual think

thought We able be be to that pace ago. really the a six and take we'll were that nine happened have to a question you that able waiting are or hoping timeframe would or hasn't that at turning start new and lot if asking comparison It shrinking we into in just months us activity basis revenues. of the and

Brendan O'Brien

for Thanks questions. color. great my That's taking

Operator

with Michael from a to we KBW. move question And Brown

Michael Brown

Hi, you Lindsey. How are Scott. guys? Hi

Scott Beiser

Hi, Mike.

Lindsey Alley

Hi, Mike.

Michael Brown

follow HLI Finance. Could put sense. you've investing I been you will from think be contribution contribution we've mentioned advisory makes that ever up markets business. know on want finer the you point just likely don't higher the Scott, capital this heard what commentary I to that. the year, on grow I from the really is question. earlier that to which a

would revenue generally the terms in contribution? now? that in the So is what of be what range And MD business headcount the

Scott Beiser

MD never disclosed headcount in that We business. the

and the XX% is that I said the that higher for the of business to end calls, have on expected XX% previous this year, to We anywhere be range towards believe, previous strong revenues But but Corporate depending of the the towards markets years are, just it's range. revenue M&A to on the how contributes end Finance. for significantly it total the been in lower from

Michael Brown

think Okay, expenses on from going great. inflationary and the maybe [indiscernible] rising as prepared base How should is there you, expense the expenses, comments. about as your jumping-off clearly, we're the been on point the thinking forward? And Lindsey, has you right we mentioned just when here in pressure about

Lindsey Alley

there seasonality based for some do three year, consistency in we on make throughout have. the of quarters whether sites the has training or Well, investments in we've it's sort had these think we is it's which business off the nice. numbers, been whether I in just

at of if certainly So of that moved, years quarter. you you're terms I'd have likely the some $XX this some a business in or the year, pressure take see expenses on to look say, how how half non-compensation we million delivered in our the historical second

last year. kind quarter, say three probably, expenses. and bad years see would not that slightly of I'd view take non-compensation or look But the Next at seasonality a proxy you're is two to probably this I estimate for a a non-compensation going higher -- that's

Michael Brown

questions. Okay. helpful. Thanks That's taking for my

Operator

with Harte next we'll Sandler. Piper And go Jeff to

Jeff Harte

cleanups couple Hey, A good for of afternoon me. guys.

that of Can And you that of more is You about you financing. everyone specifically financing financial kind there. important large its relative how a mean middle in of is business. availability transactions guess impact kind the market the are talked to a how and it? middle seeing little to markets out the interested I'm to I available talked -- some -- the of on speak bit more I

Lindsey Alley

have think it's perspective. important, you to So, sure a availability financing, correct always you I make but think need I of

up We more this downturn, financing and all existed -- sheets near the number XX not money ‘XX are years is into so of much of so the greater structures. are that look first new to willing just [indiscernible] better. parties you financing where ago. much are was to able, creative than we available. nowhere are just banks ‘XX, head People There come at how want of the with The balance what providing it,

year no ago, a that. come dispute tougher financing to by on while so And today than is

of the we're for covenants I different least of parties And traditional not they're not private deals, we're can't they to there bank for that higher some won't kinds our that equity done cooled the they says, of the for has are be set structures But the interest financing getting at or most down, firms, dialog have deals clearly mindset get rates, that at that but lending in a them. or deals I are financing in be part because having in clearly the would doing, executives with

Jeff Harte

to market, can middle kind incremental It seems then any market sticking And are transaction seeing indicator. in us give with middle I’d and you you of prior on changes activity appetite. thinking of of seeing leading Okay. cycles. of some is suppose restart and you're slow I'm color if first planned the dialogs a intent kind first

Scott Beiser

typical Yeah. to middle I mean a what the cap we've of said the all, deal less first than is, deals. close large timeline market is

today closing that cap were larger deals in, things the three brought in XXXX. call ago or excuse of were are -- lot months that calendar me, it a So

is look would there. a -- do that I have just describe when take than the think we done. auction it's we seen still Yeah, at to you So private that can strategic both you deals, dynamic. a is of parties, and still, enough out I interest deals interested and in there of might number But is transaction there a the general general if we've get less participants before. equity

Jeff Harte

Okay.

than you and US. Asia pickup of Europe tie acceleration of you transaction. Finally, faster restructuring, GCA that to Can mentioned or kind kind of the the in any

have or opportunities conclusion? from is to it bigger that existing to draw some business cross-sell bankers too over You soon use there, a

Scott Beiser

necessarily new at dramatically It's from because head to more it's Lokey much count dialog market other business versus and et changed our from is this activity more primary skills we've having and event in on of say that clearly restructuring have including the the would I technology and they it's, in But I'd and than not with coming we're our of of firms on changes results staff three segments, restructuring but Houlihan the cetera. all achieved say point, something incrementally the the Clearly, helpful, bigger and and the brought most driven skills. seeing in we Asia unique marketplace Europe that space, broader

Jeff Harte

Okay, thank you.

Scott Beiser

Jeff. Thanks,

Lindsey Alley

Thanks, Jeff.

Operator

closing at to additional further time. or like no questions conference Beiser this there Scott And it for now appears to any are remarks. I'd the turn

Scott Beiser

I everyone earnings to you fiscal we XXXX fiscal in updating fall. this we want for thank first look participating XXXX quarter year coming to for And discuss our when progress all forward quarter results call. on our our second

Operator

your this participation. so, today's you concludes And for Thank call.

now disconnect. You may

Houlihan Lokey (HLI) 28 Jul 222023 Q1 Earnings call transcript