Moelis & Company (MC) 22 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

Michele Miyakawa	MD
Joseph Simon	CFO
Navid Mahmoodzadegan	Co-Founder and Co-President
Kenneth Worthington	JPMorgan
Michael Needham	Bank of America, Merrill Lynch
Devin Ryan	JMP Securities
Brennan Hawken	UBS
Betsy Graseck	Morgan Stanley
Jim Mitchell	Buckingham Research

Call transcript

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Operator

Good day everyone, and welcome to the Moelis & Company Third Quarter 2018 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] And please note that today's event is being recorded. I'd now like to turn the conference over to Michele Miyakawa. ahead. go Please

Michele Miyakawa

and our you everyone joining for Great, quarter thank XXXX for third call. financial us thank you results conference

phone Mahmoodzadegan, Navid Simon, today Co-President, the Joe Officer. Chief Co-Founder and Financial On and are

begin, and this may future uncertainties, identified on performance, including we remarks including subject are forward-looking call I'd that those contain note Before of the to materially to made which Moelis Actual statements, from those certain & regarding like various filings time-to-time Factors in firm SEC. differ the with to forward-looking The results anticipated. section could obligation update from Risk currently the no statements. Company's undertakes any risks

these Our measures, in to the which adjusted compare The information Relations the our comments non-GAAP these when or to Reg other presented with and our adjusted turn on results investors.moelis.com. across together investors by G website GAAP to several GAAP references better Joe. firm's results. today over useful operating and information to periods Investor understand with at the I'll our certain relevant are reconciliation believe financial financial financial be measures. to We found comparable measures now is call of earnings provided include measures, required can release,

Joseph Simon

quarter the period. afternoon, and call, the prior which business. then our we financial I'm increase Navid representing over Thanks, to everyone. results, in On a Michele, results of I'll revenues, pleased and a and on achieved commentary will good today's go year third record our XX% through $XXX provide million report additional

M&A which year completions from in M&A was a global prior favorably greater of down Our to million performance compares overall number XX% market the than quarter. $XXX the

with continues and sequential growth and growth. share driven strength revenue restructuring strong from year-over-year and positioning business benefit primarily was Our market in to both continued M&A by our

our the period. year up $XXX over of nine months million, are For the first revenues XXXX, XX% prior

periods. prior consistent be continues accrued at expenses with to to adjusted compensation expense Moving XX.X%

ratio third quarter and year-to-date. XX.X% non-comp XX.X% Our was in the

increase third longer attributable accounting, of headcount For related and reported dollar offset increases provide was largely $XX.X no The year-over-year client categories. new accounting expense an the million the to to reimbursements the we non-comp quarter, under which non-comp expenses. to

tax XX.X% nine corporate The our quarter vesting timing year. and the Our are the of was the for for rate XX.X% first the third months. events effective concentrated in first half of

quarter’s approximation of a the underlying this So rate. rate better corporate rate run XX% is tax

income that effective presentation a income As of tax calculated reflects the net are reminder, rate. tax adjusted firm’s our all corporate

a stockholders to declared November $X.XX call with the be as the financial XXth Navid. share strong quarter of liquid Xst. of turn We And on and cash quarterly of I’ll million Finally, dividend now per no investments. debt ended to our and a $XXX with paid to Board over of position record November

Navid Mahmoodzadegan

and Thank up achieved was last from good of quarter our QX half are continuing over period you, afternoon, revenues acquisitions. everyone. the organically strong momentum year. another the any Year-to-date, our Joe outstanding year. same without firm, All for the XX% our first

to continue drive business and the Our across new regions. culture network integrated across people, collaborative wins exceptional and sectors

fees prior was quarter of of all number transactions up. year with larger number completed overall, a period. clients greater a by strong with third Our who advised greater We any key a indicators clients pointing of paid compared and $X the measure number million over

revenues. including all products and fees third complexity increase to contributing achieved we In meaningful average completed and that and continues steady we advised the which a on. higher saw be transactions record we With size the earned restructuring, a transactions addition, of in quarter contributor,

next Chlystek attractive be business food our last Matt a advice announced the will Since are Moelis for Managing we agro strategic earnings continues culture financial to and talent. firm to client clients. growth, very a provide momentum call, to strong Director as destination Our why and month be that collaborative joining top and

Jane excited Sadowsky Senior very to focused Advisor also are as We inclusion. on a welcome diversity and

We women and underrepresented other recruiting, privilege We've with know are the working our and Jane had improving will initiatives. previously and tremendous very diversity and to of developing groups. retaining that committed add more to she accelerating value

near-term. equity which out we the that geopolitical United especially regulatory much threatening and turn pace impacting our of in I the me making these discussed deal in overall to disruption, of to performance which both the These Before the Overall landscape. point as requires larger we we of the include; don't real asset strength view. M&A have activity, do on four, or remained one, overall make key amounts funds competitive the historically But of Two, though market respect to rapidly market to questions, at campaigns. Risk other in time. potential deal a equity this shareholder key being are with correlated seeing before, comments fundamental all few cross-border activity. previously, we're And mix been drivers deployed deal see environment. overall have which around and are and in intact let institutions. firms, M&A very of factors in what some a said risks companies some it's countervailing all are impacting technological actively you wealth their trade, have deal especially sizes margin, States, often been of where Three, that raised deals activist point are economic to capital strategic activism changing sovereign is a certain in fair growth and assess the positioning positively there with I events positive think the for on private transactions. element record that at and uncertainties global the the

of questions levels our felt have. and you to Moelis, Activity culture our any welcome Turning positioning. better business, dialogue quality remains about strong people, back clients we With our robust. that, might the I and with have competitive remain never our our

Operator

questioner the question-and-answer now we Instructions] our Please And with will Ken be go Worthington first JPMorgan. And will begin ahead. [Operator today session.

Kenneth Worthington

Hi, and my questions. good thank for afternoon you taking

be maybe be first season senior So more kind you to considering conversations into moving expect might having to meaningful I’d going who with where Moelis. of this people where

how of looking talking looks maybe And as pipeline is approach season to So promote, year? how there? hires experienced versus you're we last to today your this class the candidates the time maybe latest does of

Navid Mahmoodzadegan

and respect types that the really questions, constantly the historical to that's generally for of actually bring to annual having, are hiring to the to It's dialogues is success late we fundamental and keeping people we're and people key around always of the plan. promotes recruiting future laterally the a types getting promotion of tend endeavor. internal we've the of process element about, it's really typically up business we're Ken. as we most promotes process. the is been our of us a kind a do element relationships constantly internal meeting progression. terrific. Thanks firm. of to With talked But know really from of Look, we're the through the Look, -- year lateral in for going recruiting our We're dialogues our obviously spring our of key summer, when onboard we're really overall people,

few we say they the in be but to number early years. been I the same last ballpark the will will in have promotes what suspect of seeing too of it's final over terms as So numbers be, internal

Kenneth Worthington

the fair of say deal been alliances, are Japanese with they partners? you what extent Maybe -- flow last you have X XX these alliances activity And a Okay, months? strategic and over number impactful or have or to the enough. Mexican extent second, what have seeing to either

Navid Mahmoodzadegan

Sure. Great question, Ken, thanks.

firm, Japan they put be in contributors alliances. hard in relationships in on -- predictive and be standing one important tell far So those our in and to alliances Mexican we to today, are believe the people both us good one very of those and positive alliance in taking of is we we do value in both more respect have think those quarter, numbers I transactional of I do and one Japanese kind great markets dialogues any it’s in those added best we But are them, time We is both have with two of Look those this will in one of here hard sitting alliance are for marketplaces. Mexico. are quarters. recent. to are they maintain alliance, impactful those activity, kind that to kind place, by The It’s how and of set at point alliances, of with any business way to terms to strategic very you company. that the our longer

Kenneth Worthington

you Okay, much. great. Thank very

Operator

And America, Merrill our will of Needham Michael with today questioner Please ahead. go Lynch. be next Bank

Michael Needham

impact? period it’s know but volatility on Board a of discussions? are on touched of is taking level, M&A the kind that for equity lot Navid, time questions. how the transaction slowdown impact announcements the and for time, you recent, having is CEO they A this think, I the thanks confident question an that environment, kind and of spikes a of having first when market Hey, an of level I is just bit. fairly My

Navid Mahmoodzadegan

seen the as a that not have been Look over you Mike. the few Hi, phenomena point and we recent last yet volatility weeks. more here has out, it

B, impacts of drivers conversations they a its disruption period have the you’re phenomenon, too that’s more intact. about, if that I impact XXX% Look, still So generalizations I making. relative having still making. have on of on to mentioned the deal The in that which companies impact. the I before When recent is of it’s volatility it’s deal has early kind technological more kind of values we own are ripping Board going the advantage their any level for macro just A; important think But isn’t for about companies of think you’re with if very volatility through And but movement or make set much the point there’s to kind right, going well those to can scale, take some will disruption The every prolong need are industry as people impacts be as value generally away. of a volatility it need be of the this thinking are or equities, to just of deal positioned of a to disruption how then using confidence, stop. CEO does possibly kind lot isn’t and impact deals.

very M&A near-term much fundamental carrying volatility kind still those we of for of so could of time. the And see but a market drivers some period impact, modest still have

Michael Needham

some pull forward, Okay, meaningful this quarter you for got last that. that anything quarter? there called thanks And out was deals

Navid Mahmoodzadegan

to want Joe, you that take one?

Joseph Simon

Sure.

for update yes, So, we and matter could attention day plan draw it, your to highlighted you to two model really revenues discuss so your thinking. don’t We period. the any quarter last to really

plan I I think just but that keep -- I it in on -- this not to I’ll disclose just answering. would quarter last forward what we a it’s context, did going question

$XX basically about So, quarter. it was million this

Michael Needham

Okay, you. great. Thank

Joseph Simon

Sure.

Operator

our go next Devin today with questioner be Securities. Ryan JMP will And Please ahead.

Devin Ryan

Thanks, good guys? are How afternoon, Navid, you Joe.

Navid Mahmoodzadegan

Hi, how you are Devin doing?

Devin Ryan

then Doing then the been well. And know you on in that, if restructuring been one stress tone that’s in Maybe with the first change and just dramatic, uplift pickup it pockets whether sure has there but seeing any activity? new? just driving the weather there any of there in I beyond business hasn’t just out that any rates, not are seem if here

Navid Mahmoodzadegan

default question, tick Look, haven't with low, interest of what rates point flurry seen significant rates. kind activity rates out, of of still think in their rankings. we Good be I but recently in continues up, default the is as the of restructuring our Devin. knock interesting rates park though the would to really the it restructuring I you see are it a default happens really numbers what's out terms new of do team terms think moving as to on

of of I've a statistics firm worldwide of look terms set much in U.S. seen recently. to all you pretty are number or rankings one number whatever tend in two or here think be completed or at announcements I restructurings we ranked the

global market a about model from and talking a terrific over a share think of the team. integrated keep they're strength that So function more job, and broadly, restructuring over the ability we has again the this expertise company on it's of of a bring perspective, doing in basis I And on side impact both expertise the major to to side. clients everywhere, our terms which creditor sector and

the good the contributing on take So our I team continues stable really think which I to side, think relatively is but the overall market results. to is share, restructuring

Devin Ryan

for M&A just the keep some And the to going on your just then here of thanks maybe Great, environment comments. on and color.

tend we environment far on business risk. the that it you, remains the just cyclical people good. lot broadly. is peaks consistent hear sounds be pretty in if maybe the So But pretty the market typically see the pretty whether or are conversation to this environment consistently of a I peaks, activity, more But right like business in out around curve or now frothy just

you've cyclical you're normal you I'm so anything And kind we those been that just peaks kind through whether cycles signs on else or light of of shed and curious seeing some can there? see at

Navid Mahmoodzadegan

cyclical Yes. Look, kind of Devin, peaks, it's always right. call hard to

in cetera, base right? et You predict some cetera, and equity question, I in your it cycle at you and about especially their and know but hard look start light when be on point et once that again be to recessions there on and how starting of don't kind peak private it's it's you cetera. of to firms all will just while just will model much in middle the anecdotally activity, et deals, this a happen, hard hear the just cases Look -- will prognosticators to predict notoriously in -- are that you're to you're know sheds middle of the a

that So looks economy there's have and you're that aren't is could and making what be we a the see near overall get recession an the the or the normal impacted talking back to are The PE overall these pullback. point about Because I it, the pull I pools saw shops market going money one and at keep think slow Hopefully again, deal some it stock to is think I the we away. time anywhere But where normal economy though deal-making that of global handle certainly likely trends that of the I'm things around will certainly the predicting going down. acknowledgement impacted by are do that at not last kind of by won't sitting will. spent. like. won't economy

is if disruption anything. that basis activism about on about, here I the keep not everybody's accelerate going technological that think global talking -- is a is stay I to talking and to

going on there you to look again, over the different some I these and are margin. But deal seen could persist, if impact even to XX on So some than start or the see think little have here what of we've a the XX we last drivers making economy do fundamental months.

Devin Ryan

maybe aggressive share some you how I been a helpful. point where but kind the share answer, Joe, float? to enough, for, last know the on or it, do would I smaller tough just a a maybe the just we've is know appreciate want Got we offset seeing one it, about very that's attractive one just And the perspective. get of you on price to dilution where to there to then but expense thinking repurchases, here, of have been just of -- that get even more at guys

Joseph Simon

the doing with I of buyback having at possibility it’s point. Yes, constantly conversations point, we've I some out Board. our to think that at think not about share rule quarter been persist. I'm what each something -- going I But to wouldn't is we're continue this likely a

Navid Mahmoodzadegan

But public. tend these we seem regularly certainly we we've really the that like in the been more excess been to there you like that float on we some that liquidity for for our went think Hey, that. sense. -- there I were shareholders one That returning been and few out make cash public that important. about no is very years of dividends. to Devin, first we've a now was is noticed Look had very things stock years the liquidity lot many since saying the it. People color fact maintaining to in there has repurchases, today shareholders through liquidity doing disciplined just stock Obviously of to when didn't add

mindset do generally so still And do to think continue is that. to I our

But always back. and this we're of the up whether repurchases tend said, shareholders and hearing evaluate Joe about we've to and As we'll evaluating regularity of sense. from just cash clearly the consistency share pretty like continue that most they been amping getting discussions our to have make

Devin Ryan

Got much. it, thank you very

Operator

be go And with will Hawken the questioner UBS. Please Brennan today ahead. next

Brennan Hawken

Thanks for taking afternoon. question. good Hey, the

recessions starting recently? you comments speak to of that PE some to trends their you You you're Can bit all. Navid market of them. sort to forecast a financial spoke a big is I how know include earlier, in about firms and amongst little sponsors in this your practice you focus M&A the seeing for for

adjustments that any in trends and interested So there. see you emerging

Navid Mahmoodzadegan

side PE business, Sure, good I Thanks certainly one Brennan. tends either least what on PE part other or question, for half a is our the of exact our numbers, that. be overall Look, M&A but of business. side do. big of at roughly the forget we to

that with record in to community. deal activity And PE Continues important more environment. amounts active, that Look, of of so active. PE become in very be tune has really even market, been an a is what’s that's of capital happening lot the much raised. part is we're PE the making

fund, are And core so with facilitate one not funds. now layers opportunity it's not funds sitting amount it's not with also different funds to to types to firms transactions just control buyout of large are it's capital but capital different and -- sitting pools mez funds of the PE many capital. just to of money from amount These the them many of the of credit

so ever more raise private raising lubricating in all the of changing, and facilitation invest see transactions now because been. and good to I so that don't than they at present private know firms is we is money money And it's tend that successful And M&A they're equity in as it. that equity again look to market

we're to some in particular years are and for the both but transactions. many, a could be could of get desire that auctions some those will will to ability and be not being there sellers deal slightly assets be prices Yes, many impact asset making that confident to have a the or strategic two Look that, markets where sensing impact. financial recession it there we're and three conduct and there for seeing really aggressive on to M&A strategic particular of less to next one be seeing very of in the in invested M&A. get tends both that of The driver that help margin So not of buyers activities continue money types, on bids of right ultimately financial now we're different and activity. because firms

levels impact So we're seeing deal not it now. right

You might alone ticking ask yield in continue leverage liquid. while about the ask about be high sometimes markets rates, rates, are up, rates people to very

tick so a yet real And making at rates all a point. we seen to haven't up impact in have at deal this

we're to rates, levels overall So impacting really mind not as of obviously close far can so activity as we but paying far see.

Brennan Hawken

That's great. color you thorough there. that for thank Navid,

be are you year your if hire. there for also bit or but wanted on generally as had for But really marketplace the there begin about like candidate Moelis all there full are and come we Obviously impact risks caution and a think and next in continue hire should go You need factors and a planning, curious spoken do ordinary was next plan we period thinking think you to a that haven't seen concern. to curious you might really just into like next adjust are some you’d play, earlier, just where number about year. through about -- how when hiring that the Obviously how would folks as not it forward it about your be little to looking far to potential as course we plans year? you and if move where you wouldn’t you as of this really

Navid Mahmoodzadegan

there our subspaces, to take world sector right. start When the laterally much forward, still down space have despite pretty lots so dig have consistently. approach So, still to of into clients, Brennan, talent We reach more wide are many, areas groups. within still class we managing look we many globally, our fact definitely hiring directors subsectors XXX we really all of or the could more straight and to where that on is

footprint the And and continuing so, world as we critical for very both covering us as are best build clients have hiring out the internal bankers very, many can. in our development to and to

to really, who all who good our So in about the and and we’re that which at continue right finding works culture, person person, model the way us to doing going finding within critical, a is with fits it’s really the we that right intensively. about person economic that spaces, critical, do for our covering right those talked have and philosophy, finding

you easier could the So if metal terms have all and to the to firm, a sometimes of a actually at a firm. we’ll be be some last as do market when point, the continue hesitate won’t to we to -- global actually doing those should great continue build the as a to crisis, in people the -- market And on that will or know good best days that it’s pedal do slowdown in grow ironically very talent we year if and to not XXX build sometimes moments through continue again to footprint. find criteria there market the good it’s to the that finding out easier same the cycles and from those we as in to I said remain the market continue

Brennan Hawken

more really in time how was talked about be interesting Navid it and touched and better where was something I downturn get that’s appreciate might even on sometimes you kind Totally a there you Yes. to trying what that that a at. opportune in

on heels, as you that think let their you back market more about So to great would out you plan potentially get rephrase, talent right? their pull would aggressive and be me than in more the maybe difficult able when holding heels, might competitors might get if can on be others be guys so

Navid Mahmoodzadegan

Look all to for us out it’s in within criteria you’re Y promotion sense person to off a say, for we’re up model. hard, right person hard candidate on plot the the the for going when about, a that to for on look back shows trying our to carrier, pull Brennan. a or and satisfy and up, hold their come internal X question, can hard they and I if or we right it good It’s way It’s may it’s is downturn that that wait a make person not do talked while. person,

doing will any we’re conscious of disciplined, we would I hey, more maybe generally we’re pretty but in I say, be So, disciplined. that kind don’t -- would say think I way. normally

So, I of generally we’re think discipline is part when hiring. about thinking the equation,

are business firms, the for we the pretty XX of don’t I types the to we’ll about us. people can there in been sense of people we And good the different a that data not information bring evaluate the will and people we that market the boutiques, through from So, And a that from from to just plug we’ve continue we be all hired different process done generally we now, of and developed here of evaluating backgrounds, whether think have amount right they of great successful bulge, they had look, years, types to we than if top of people we platform here those internally into now talent that’ll of the available, people, we outcome have better could about talked that international than and think the have person we and have environment the hired better have kind be is we’ll and we hired here, firms, from the that’s of firms, we've people it now people off ever And now if fit, think a put development. people from make them terms and types in is be have big people into been. way, ever we hire be here. a and they’ve person could muscles them the the hired on board for we I and races, system, great think

we and people And so said really having as to then in to continue good about great feel attract the we're where of continue our so ability and in are and to we and I recruiting not feel good dialogues great markets. markets about terms

Brennan Hawken

it. for Navid. that Thanks all color, Really appreciate thorough

Navid Mahmoodzadegan

Thanks, Brennan.

Operator

Betsy The next Stanley. questioner Graseck be today Morgan go will ahead. Please with

Betsy Graseck

Hey, good evening.

Navid Mahmoodzadegan

Betsy. Hi,

Betsy Graseck

talked buybacks. done up past. of I'm investment on line special against bit wondering a Couple for dividends? But you about the those one, I as know earlier again, I I’m noticing the appetite short-term several cash the how Hi. little times questions, you've we creep call the weigh and in that guess

Navid Mahmoodzadegan

Betsy, excess Joe changed but itself at few speaks can special not me The dividends The been look regular been in has philosophy kind let of gets consistently. last what start. right chime in we've the consistently, for terms record years dividends, very too, here and terms since shareholders returned in of capital over public. of we've all, to pretty

growth We've the everything on interesting M&A to You the been doing M&A, about sustain we that side. continue door to kind comes haven't M&A. M&A in done evaluate might ask any revenue able high we meaningful really without been of while what we've doing and

returned getting returning the of the back bad today. like And issue the Look historically, money. while we the of the found of shareholders up it's in And cash been a people on basis. buybacks. what we've less share better haven't thing kind big doing of from as criteria Again feedback an to keep part the said, than have We shareholders not terms that's on And hang anything is, too of kind consistency we're meets consistent the a that building that's of they to we I you as major firm. pretty find liquidity all a it's has been shareholders.

the of quarters. always discussion much this -- over to last have we've kind with always to now our discussion. continue internally think pretty here sticking we're have we're We’ll what So doing and been this we I board. number But of right

Joseph Simon

have And we have is you to of easy that beginning following as it's quite so year taxes. is at and would which ultimately that well also to of for bonuses just released accumulates have thing understand a year. I And bit been add amounts cash, but year as marking -- one the we the then the ultimately through

but those are largely So building, marked. balances they're year

special a think distributed in we you I As early know September.

regularly this, we at cash. at excess So look

Betsy Graseck

Yes.

different wanted just of are change get wanted the that to bit -- doors bonds But we're them thoughts it and Navid, restructuring wanted I little structures. we restructuring as might to of see that we it question today's if and the how going becoming, on investors deal And type time side hits. that things that are there idiosyncratically understand regarding done restructuring about to get wave wave feel the that revenue think restructuring lead look from the potential to that is dialogue different a prevalent. to have next like that recently. a issuance in don't Okay. when that kind I getting are environment structures the or you how on your prior being cycles us And the to trap to get and been around one And of issued like the outcome up. Is know something terms I specifically side in a shows

Navid Mahmoodzadegan

restructuring issues, So, lots cetera. et look do a types it's good of Betsy, little the possible next different. happen restructuring let covenant Look unpack kind cycle had the that that We of I yes, obviously question. the that et me -- cetera, of light some try to of think transactions could that,

in We a for really of frothy now environment years have a loan of how leverage yield bunch here been in and terms issuances.

but And of attractive really not so on structure. just on advantage taken also have terms, pricing issuers definitely

and of elongate of we and going to And completely, it's cycle restructurings for overlevered answer turn hard potentially know the so hits globally when that what's question deep in for create companies and we if across spaces revenues It's don't geographies for happens, because predict, ripple the looks cycle hard will kinds and kind different first, through. and forward. But, and that the it have could mean the really how business. restructuring what the that if why it cycle a like, to and or comes our which therefore, trigger

team and share, think like for this Here's senior whole presence, a were continues level me we've as much last team, in of team we top activity frankly with low this through what of know, quite something of year-to-date non-senior degree years. today team the I involved couple their restructurings and pretty period kept the elevate to rankings. mentioned that market restructuring elevate to whole low of biggest the do of our time, the their Through relatively certainty, the high that. level, And together somebody our five that year I

think its So great the critical environment back we about feel business that I the things in different spaces. reasons platform, bringing it activities do gives level and a bringing of coming this one to in the of as really a markets, together of like, together team looks do how elements all together wave when we it when know record track an looks happens. it and and if sitting around about next terms And bringing you're the to global very, integrated critical, powerful. what expertise, continue and of company successful become advisory it successful for is be in the experts, like it And you edge was was go other of -- then their big have because when they pitching of pickup an to elements I sheet on feel of these and overall extremely the our an really it they’ve that and you It's as firms the risk cycle. we’ll This bunch team you in again, do, the productivity talking creditor with great that balance keep have you're team rates no you other across chance known gives see a anybody well strong it's have and you that it when is like, this default do sitting where to was assignments, there else firm large I the about matter can big edge And the why joined, will and there of very lay bankruptcies. through space. be these be a successful, capital them when sector different and

Betsy Graseck

Okay, no, that for color. thanks

and end a there lights challenges up therefore, covenant that the some a we think there up fee higher restructuring say let’s maybe complicated, rate. having end from Does is more perspective. there meaning follow-up that Is can about? that any it's one Just correlation

Navid Mahmoodzadegan

have sort restructuring reckoning if experience over different a right? point, of and draw some in things at But might when a is guys it's up happen. maturities would this just of find I they the if and sure, that, I phone, there'll my levered, on not of is kinds I'm be our view. were a And company day over and come levered, Betsy, those

won't be you be some So to the a problem immediately. may way, able back to you the able But you'll issue, pay maturities. point or not have either along a interest pay causes covenant won't at which

means the longer. what takes just light sometimes And is covenant process

Sometimes fees. more the could mean longer process taking overall

a more but mean lot it Sometimes more might time. fees,

get advisors. light, to is as there's their I greater you’ve kind I a hard generally reckoning of not And sort cyclical be it's activity. truly feet. and they're lots fee bad then whether But and of get over that cycle restructuring point. can sometimes, on of some day know if restructuring some to levered, that's But at over good in levered, not when much or hesitate for So, wave a through and at overall or point great of companies of covenant businesses what would will kind always, are back terms the of say therefore know,

into what if going mean, I factors very direct you predict are there that draw to hard know that's I to line of think kind look just many that. so other like so what it's to hard too think it's any I play

Betsy Graseck

we this yet, shoe you lastly, get you. hear this I haven't constantly. reasons wave must And for Why any that? I do why restructuring? good fallen think question in some hasn't then just seen material there be No,

Navid Mahmoodzadegan

global economy. have very Well, strong we a

when strong. the very again of few things financing of sectors activity have saw happening, both you and of are some all seen a we've in -- you economy activity gas have oil those And environments. obviously retail. We in wave strong have not when ago, We years

time. definitely widespread restructuring for seems time activity, of kind form to some because crisis pre-financial in somewhere pickup you and issues that the alternative haven’t activity certainly of problem rates and companies I funds economy rates. of funds of But, prepared pickup of a solvers has in widespread see companies the an been some really will there been have more turns, there's financing default lot the in specific the as and relatively good we’re longer tend you seen that there of to to low, have and dating this forms company no default and buy rates of is to when give said when more credit lot of to pockets the terms be a see But, lots and crisis. folks, inevitable there cycle financial legacy back you’ll be of to and lend funds capital economic So and there’s those them because when elements and money, hedge some

Betsy Graseck

Thank you.

Operator

be And Research. with Mitchell ahead. the next Buckingham will go today questioner Jim Please

Jim Mitchell

good afternoon, sorry. Hey, morning,

Navid Mahmoodzadegan

Hey, Jim.

Jim Mitchell

quick see globally third business slowdown got you quarter, and a about did we you have for think that’s kind that Navid, investors I question, mentioned a of industry better Just guys. levels strong in remains the what’s felt you in activity activity never your nervous,

that’s do effect, Is sort overall it forward, what of How do you if new slowing you it the driving because I think worried this think of environment, we environment are what about is think lot going guess where and people of and seeing about. new sort a the of So, network are promotes. I the in slower kind the have we of is that? context hires just maturation of momentum

Navid Mahmoodzadegan

a Jim. our dialogues that yes calls and I have all. with talking question, been it’s the of for Look think lot we on these you in thanks about things I Sure, our think

the people that’ll to the base think not now plan the terms closely, firm, you involved the growth the do it’s we’re lot of single have when always quarter, do runway still see as as Can’t investment even any have timing good market two still of left, quality in or and States, we as a but in and tended in to growing continues because to still firm into even and we continues important and compounding we in M&A quarter maturing continue fair over we a more said still many mature, different has brand continue your market in that it global of luck a types growing have transactions. we and tend other the don’t the work that you through effect of well-known so and environments. United the have things quarters look more and good years high brand growing one the continuing, things to a to is of We so people we platform predict have not to that platform. people a I transactions have. a and other culture still our as there’s been that or on firm, new tend to think are a growth name there those growing think other relatively parts as and that and I grow. and two, in just there early who when we who talent do So the see growth And pointed of And ability the we’re have right get major out now lots a their more every that transactions, deal too also on to for share as world maturation to But been the as in people development been we also say closings. are you bankers positive -- relatively have are systems new happens in that and the and -- we’re in in bunch taking on deal tends still happen to you is have better and paying off to Europe in

the think do together, and everybody hiring the you all of is think kind been good we’re of performance continuing so, people And are to I culture to those seeing. bind I leading things have

Jim Mitchell

helpful? anything, about just for non-M&A spaces advisory one of about feel the been a among haven’t would really sort some has you of we the you maybe markets opportunity thing that space, been products be guys. growth capital Right. still And like I talked then engine developing, today in think How that set do has very is good

Navid Mahmoodzadegan

Sure.

to is has team that adding major and a environment fund been it’s and what group made good equity business mandates hired as have on our so that and and -- we both again equity get base getting helps contributes and incremental markets, really back capital capabilities expertise an have in and and investment basis, and and fund continues markets be just M&A private we knowledge clients and that suite look, they're business that does building nicely of global mandates firm. continued we’ve So on nicely team been a we Capital they raising, debt enormously it mandates for business and ramp. progressing full that bringing business of hoped lamp important to to a execute good not way get kind on successfully the best like to it’s restructuring our in would but that to us and is that the they of in, of raising growing it more to for and ramping the and been terms and feel a transactions,

with good transactions continues what complex so advisory risk that's really institutions be business important advisory on And for that risk to us a to business financial be of the for us and is. working business continues an the part

We continues the and there a unique be company. that capability contributor have unique to have a very team positive a to

to important you So all out of growth. those our point things are continued as

Jim Mitchell

Okay, Thanks. great.

Operator

turn conclude will any to I the conference that back our would for question-and-answer closing to remarks. now Navid over like session. And

Navid Mahmoodzadegan

you joining in future. you speaking all time Appreciate distant not your you all for Great. much. and and so with Thank to afternoon. the look forward too Thanks meeting

Operator

may now now today's presentation. The Thank you lines. has for you your And concluded. conference disconnect attending

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