Moelis & Company (MC) 26 Oct 202020 Q3 Earnings call transcript

Company Profile

Participants

Chett Mandel	VP, IR
Ken Moelis	Chairman and CEO
Joe Simon	CFO
Ken Worthington	JPMorgan
Devin Ryan	JMP Securities
Manan Gosalia	Morgan Stanley
Steven Chubak	Wolfe Research
Brennan Hawkins	UBS
Michael Brown	KBW
Jeff Harte	Piper Sandler

Call transcript

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Operator

Good day, and welcome to the Moelis & Company Q3 2020 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] Please note, this event is being recorded. I would like now to turn the conference over to Mr. Investor of Head Mandel, Relations. Chett Please go ahead.

Chett Mandel

and & Company’s afternoon, thank results you Moelis for us joining third call. for conference Good quarter financial XXXX

CEO; Financial phone Joe the today Ken Chairman On are Simon, Officer. and Chief Moelis, and

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

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

Joe Simon

leading from and improved in COVID-XX. second to resulted quarter achieved financial Thanks, in dramatically revenues general Chett. since We The growth M&A Good third $XXX then strong consecutive the quarter and third results our will this I'll contribution sponsors. landscape both On Ken solid our -- today's through a afternoon million of further. a everyone. the for strategic quarter sequential go discuss business call the of onset earning

quarter activity was ours. particular We a experienced contribution. in third last ever restructuring-related record specialty out-of-court exceeding of the restructurings strength Our year's been it's highest,

lengthy Chapter offering to in resolution XX which a excel in timeline, process. the innovative the cases and can to accelerate avoid solutions continue We certain

In significantly make year capital elevated retainers remain continues and the steady to restructuring to a our revenues. over business addition our contribution prior markets

expenses adjusted XX% accrued at the to Moving was third compensation quarter. expense in

third travel non-comp recorded of low expense was and quarter discipline. and continued non-comp in Our million continued due expenses XX% to ratio $XX the we

rate approximately XX%. Our tax normalized remained corporate at

was quarter's rate the effective of This tax to reversal quarter previously than profitability. to cares the accrued normalized rate benefits higher current due some due

capital. Regarding dividend of maintain We've allocation $X.XXXX of share no declared capital halfway a which the from quarter of undrawn million position operated of our to balance now dividend. revolver. call discipline a I'll fortress former we the back and committed Ken. board a of and remain to debt. increase cash from investments to an second per And ended liquidity regular financial our and sheet returning the quarter XX% excess is always with We lastly the And over with turn liquid substantial to an $XXX continue and a XXX%

Ken Moelis

a people joining afternoon thank our calls of people. listening for Good you internal to the lot know all I from at looking our call. and

I’m unusual grateful focus dedication for say the the you just I So how showed wanted during time. to and

of even of come to by energy together awed out the which the up I'm -- working sorry, powerful leadership I’m powerful remotely. worked innovative and crisis. solutions all this firm dropped the the created and has You've for a our during within clients ops company, breadth been everyone depth with positive has though

sheet an busy have problems, growth health seen thought new on never we The with we a pandemic helping to creatively no lastly, or they financial economy rapidly and business commission matters, of face. to capitalization. and in The friction COVID-XX will at was form scale everybody was about believe opportunities. make us we have able And will internal in strategy before, decisions of concerned balance to what to believe their we will quickly were adviser debt why And with large fortress and exactly client great culture the And for allowed to solve without Nobody reshape Also up the firm. of fact the company environment. is And is creative Our pivot structure I with enables able clients. clients been their rebound that so down years put our together marketing feel that, of the that the concentrate resources the is can and focus companies which I continue client teams unique of about which to deal to to come on that sets to about our to I'll their quickly. of force people everyone who so organization best even it. has are need This apart and come. do I heads -- global the position, do. we open the stride questions. and the why ramifications changing our an future many

Operator

Our the with Ken from Please will Worthington question We begin JPMorgan. question-and-answer session. first [Operator go ahead. Instructions] comes

Ken Worthington

Hi good the afternoon. Thank morning, for I’m question. you good sorry taking

restructuring or how the the You terms off path quarter? quarter this accelerated given restructuring was that started a kind you path to environment? the see of the ramp of levels continue had has mentioned driver did big in restructuring solutions level outlook, accelerated success throughout to in to activity to in you a restructuring And by that

Ken Moelis

said our a elevated. are was that No basis it just current on in remain retainers

really of XX% is like that. and of troubles something really it's a having it at headlong looking So XX% M&A restructuring economy is it continues, bifurcated

and find sort we than lot a of we've we always pointing Ken, We've is and out There always I've prefer of we've elevate it continuation. Yeah out that we’re concerned continue through been Chapter do fact it. It's of doing after forget the specialty we And a I done nothing after restructurings. of it done court. so very are out people It's about courts. it. prefer our ours. exact just was a out unusual And especially really other in. and to done like the think done it few without found we're percentage they've stay And far so it's innovative percentage, XX. to and of but a going it's most it. restructuring significant as companies of

Ken Worthington

you or potential move in you okay the maybe Okay, certain wait this but policy March a to your year dividend choose that little really the then Maybe horse, And cart dividend bit would a the until about enough. to the fair tax it's following should a special consider rate to pulling direction? given thoughts under the of election year. changes a scenarios XXXX into if special is dividend forward of before

Ken Moelis

this put Let's way. it

in know a feels different the want If would you’ll up know dividend the we because we're with And dividend case pretty we’ve some there it. read bringing don't that I with, wise substantial would take like think have we we sheet done fortress. if floating would to in I mean an indication amount I say think a we're would are we done in look I things in capabilities sheet business have we that relevance election we our people you substantial, involves And definitely the balance a a foresee our was thinking a yeah benefit. back quickly of that conservative a there board about dramatically. tax benefit, liquidity if that that pretty of to the it be be respond think no that and was Again still picking we're there nimble. the on this real have it being future just are our something it. balance substantial as brought could but around leverage a and We anymore virus forward and change on a

Operator

Our Devin from ahead. JMP Next question from comes Securities. go Please Ryan

Devin Ryan

obviously Restructuring the which about M&A maybe pace? a which, business XXXX, the there. is are a a to how like but to you would pretty you're at getting be flavor little restructuring for getting it business to the levels at for healthy. which piece higher today really seem if you come flavor it and to that to is tone And more for what -- we kind guys talk around at. feels a Could would is compares seem levels level is seeing level really So come for M&A the strong the to similar pre relative just would you of relative and when pandemic a M&A I'm that a here environment little at higher to frame put outlook together maybe may get were what was together back bit trying for bit how call quite pre-pandemic

Ken Moelis

been. pace M&A feels -- our as think high as ever it's I

-- totally strong as ever is it's backlog been. Our as

started quarter sponsor And community think it’s we is our a -- of deal we felt we a -- -- little in lot that middle with it it. -- a really possibly in -- we responded was late July, the of I do bit it was may and we here earnings quicker. growth they second be what said

market. the a to those in types your rate And tax by make a to affected you're high growth happens difference are growing tend doesn't a transactions maybe of the if -- and think XX% year, think XX% larger globally. kind big I of you're and a what and I more policy by election little that -- election the clients if is

to mean it’s two bank like X:XX their ask -- Germany I all then now then So -- way extraordinary feel two-thirds we airport. to the from I to had getting from the West they’re I they AM happening, the your their about and so I call. in our travel were we work and get I to week? in back time they're in to exceptionally or right used their this the starting and night. about June-July of busy to talked things getting you it's came had busy banker, our efficiency said talking was way back are -- to felt I've And X:XX quarter we and think literally resume is and to one their of bankers we're time I an -- And came XX% literally talked at Coast use second and on well bankers

so hour getting going a like getting let’s we interesting per that -- have production because expenses, is are I it’s on short the we're we ever pretty where actually what’s people be and so might are right less that because M&A -- strongest think of it felt, the of answer way. more I strongest now, feel dramatically put

Devin Ryan

Yeah.

pull the for think and at the hopefully third tailwinds you Okay, do some ties down see Joe to the just we you was travel starts areas. that trending guess just where And Kenneth. to XX% Where to limited costs of this Just expenses, year? I least non-comp into of Travel maybe out so just next around made, you're with how that at some in get back up. point costs some are then clearly talking continues in here the expansion contemplating your you I spending business the headcount at maybe terrific. may starts into also about. guess and some but about point back to not back as non-compensation contemplating recovery quarter there quite time hopefully some balancing kind recover same it pick and But travel. and should year-over-year also

Ken Moelis

Yeah.

predict levels. Again XXXX it idea or the thinking I to $XX So current thinking where but think non-comp, the believe if sure I assuming I'm travel I'm how know to next quarter that don't to I don't in thereabouts. stays I about think will were just going still we it's that it's million travel -- fairly back not level be. at you probably that's have in that no resort I about

we probably of on terms point that's $X decrement travel. the of that per see quarter in at order think the I this million in something

on New run and then also should top the fully expense into million that is rate. So, York in know that taken $XX new lease of you that account

to be travel. So, going the factor swing is real

Devin Ryan

back get Okay. million just the sure the $X make want to that's is I -- where … or Got to we it. --

Ken Moelis

No no …

Devin Ryan

benefit. …ongoing

Ken Moelis

boundary, you If a we're think currently modest spending used quarter about travel. to be a couple quarter. million probably to on A a $XX want dollars amounts million

now. a I'm have going on be that don't a delta quite million to than how $X right return. the bit to is -- an there's less $X how million much that full I know judge basis. assuming it's to of quarterly going So gap

Devin Ryan

Yeah.

leave I'll guys. Terrific. Okay. it you Thank there.

Ken Moelis

you. Thank

Operator

Morgan Our comes next from question Gosalia Stanley. ahead. go Please from Manan

Manan Gosalia

year, the a Hi. are saw three we're year Good year like on broad trying what to just you know pretty -- afternoon. to but -- we start on follow-up overall, a that think of M&A maybe months. And to down do three This -- typically you had just three call cycles I'm another time bullish know the get comments cycle to of two you questions line year earlier your basically months is two was when recession. the at on two we it in

think more here? So this seeing from room you how now do lot and we're this that inflection robust does a rebound have go right to is

Ken Moelis

have there. a a Well of cycle -- things we're a long-term air is part all there's the or look volatile is to would XX% by restructuring lot I'm you the the one And affected there's negatively virus. what to to of in think three it a an that's and But so XX% -- me seeing whatever a years lot going -- election -- years just -- is this the week there's reasons have have right I in virus -- XX% out next up economy of you you -- lead of two there believe through M&A easy.

I they'll happens So and there. and don't maybe restructure what They consolidate. know might --

and million think, size importantly the and maybe pandemic a to at and showed be is think and at our really And that is at good of scope in our every in say the downturn; two. we’re maybe I lastly economy business own $X a business to I make million, they $X end is -- this productivity did think going mattered The of or look decisions. we maybe that's but said looking travel think kind size up. it’ll most And make changed. your really, it economy, zoom business I’d has why large went I the I maybe number

you restructuring, economy company for but to you’re change make or a you're of your you're in do change If you was a might in decision And and weren't not digital grow. kind ready quick your a marginally and to center if market. have to something winner you’re that this marginally booming and you environment and strategy to continue stock, the off your maybe go you're

we the whether I believe change a -- it's of COVID we but what think everything said it decisions to the corporations The make businesses whether and to will is will and important. a that's those end do will We businesses lot a today, I for at to change it very go extent have market make them. living. around implement decisions help what big and capitalization, really

I while. for think it will go on a

Manan Gosalia

I XX That's helpful. And of this on then, and raising much last win business? quarter I think in how you spoke the I the did you have about you've side. on deals it raising do how did but quarter caught that capital done if much deal mention side know don't it, a capital you

Ken Moelis

people quarter take liquidity it needed seasoned our us two really the like immediate raise over -- remember that We quarter We business. so were second there out it. summer. hired veterans to I the joined we because if was pointed third the I you and

second business that It was -- wasn't is third quarter the quite an outlier. quarter good. continued The the

don’t quarter the of have the The was I -- the it big it out. second, -- number. pointed out third strong But was it Joe one and enough was we point to in because might reasons

play. to Now, opportunities markets see that will new and continue places stepped up in to for up really lots And business of that game. opening us our we We grow. think we

you that. don't I if for know So Joe have numbers

Joe Simon

of to it couple if probably X% the points X% In revenue of like look a Yeah. last at past I of year revenues. percent -- was

probably quarter around to XX%. This it’s X% think I

Manan Gosalia

you. Got it. Thank That's helpful.

Ken Moelis

was don't trade, know it Devin. so you advisory, that’s markets capital any all We have And advisory.

Operator

Wolfe go from question Please Research. next Steven comes ahead. Our from Chubak

Steven Chubak

So question wanted just off start on with MD a productivity. to I

to average can given pipeline, performance looking Just level? next guys you the just productivity about outlook for $X the plus you $X you per year in looking current -- know is million $X the we that the what in productivity at get do And you the just to believe just how you're MD. per quickly release, productivity thinking million MD million the be how out just above seeing And optimistic should year. above historical peaked given in that XXXX, five

Ken Moelis

that's you're Remember to fresh. always analysis. growing at going taking a guidance, have. that give on so people good you're had growing think when not too a always fast we new looking people I'm we new but Whenever been were I fast the, new many they don't

was end significant very So growth the one period. XXXX of it -- did a the was things of

we a this we then followed is catch said but way think statistics half being of shortfall for they trend problem. really revenue there product. don't catch I our comp and do a in of March. We then don’t while have the really think product. and that before I've up in I about lot So you that I -- do had revenue that it hit of think a COVID people talking a XXXX, first know us

know So, to backlog pretty we halt. was to we XXXX, significant coming which thought show into it didn't came is get you what a a

calling -- get and to was some you're I I we backlog I if market to of on. friendly we're I with to what path the that that’s it think not more guidance. giving of give productivity is revenue that’s -- and we don't We're don't -- know would hope that I because saying But -- involved now timeframe. And you think would a long I hope want fact a by way the coming can guidance don't is I Zoom want I it's -- seeing give to but don't begin the were that year.

Steven Chubak

I that certainly appreciate for that could all thanks color. No. But Ken.

wanted compensation, comp the as is the year flat going to nine since firm topic just that any months since factors to. why date. revenues first you grows comp brought that production the specific to grow I higher that through on of insight tracking up base piece tracking with flat understand year last the fixed follow the variable Just of could a are some in but to and the is up revenue speak you terms get is maybe

Ken Moelis

back months month really we're -- nine third you the a was the normal. quarter and because We're the the Well, XX% think look it's in full if I was first quarter not the produced, at firm that's of for we still revenue beginning. just to

stride. we're getting Now, to full back

back thing to us XX% that to be I out I aim that margin. right said think we're I I've always too; think now don't get one we to want really that’s you can where and we on point want beat see We yet. pre-tax comp. stride for full right

And when you're happened. at looking months started. nothing getting you're no so look, There there there's nine you at the March, in was a restructuring quarter was where looking May just see the April, M&A,

you people I look again start look can telling on three do what So black but a hole, a run rate you at this month keep to can doing. there stats we're not what was I see and we're doing at complete year think

Steven Chubak

And ratchet quick a was you for provide Can contributor meaningful and to whether cleanup the fees contribution head me. that quarter MD the one in speak the just Right. from count? also just

Ken Moelis

don't probably, usually a end really the sure you it Joe a top The role would, but hit yeah I had And of was flavor. a, I'm played it. Correct specific change of a something But when I MDs the two have major one I'm and I mean or the ratchet we've think of have of you there thought I It's a kind a minor. or and don't I deal knowledgeable ratchet XXX. reasons have was number quarter. in exactly. third is are XXX

Joe Simon

being of struck page. agree. top was popped head. But that as I my that the that don't that not know off something the us off it's I something that something number

Ken Moelis

look were it. Because know a so would you it's meaningful, it of That's Right. know we I why under. them meaningful deals not was mean there meaningful was lot know would we it

Operator

comes ahead. Hawkins UBS. Our next Brennan go question with Please from

Brennan Hawkins

regular the has to this for special, dividend. your but roller even all. appreciate you -- I for comments quite start -- out coaster on for maybe the a in it wanted considering been the Just a

a or experience about going forward? you powerful to be I'm your the how this in the how way a So, you is what the the dividend help raising may around might be -- just regular as approach forward? is state regular instilling -- regular how inform might think by business us dividend your dividend regular could that, very you be as about think to go really philosophy Clearly to going and your year curious lot overall which dividend better is but going how you're maybe manage feeling far dividend about you -- XX% about a Gabriele's --

Ken Moelis

didn't me we and our I would my it. And think and we back take even goal franchises to in by that the we liked up let can't one the -- if -- I I next run to -- time where say the me of -- -- great look with the the March is were company own out we're said I paid if will it that positive lock the time an who and excess specials. thing the We would world and it to is regular over it's -- capital if of do go you future People call could and it building. back way on were call -- internal Pick clients a over you're a will there fine. that's that Don't -- was about company clients fine. moment. worth see during think -- us stability the that company years rebound for rapid we're it have. much and are The if we remember we the the was April I up it's And up -- same in more I the protect we on the it focus or when least by -- its go I tell anybody will everybody at run were phone own way fortune to as down few We we'll whole what we and our X bank concerned able the the I in did the because worry people. if ended every and look dividend as philosophy you're person who banked to I -- and our the next at now. as fine, years picked entire on rebounding great emergency actions end about shut scared we not you say I the and hard and in remember share. five themselves to this own one you're that I in

was I'll So, down if that time do XX tell again. same the I the thing through clear. do it the yeah won't the it the way might again until coast shut the And a by dividend. was I'd exact way and to we I'll regular But same global thing back if roller March entire interim the go again, in knew was that's assume the time me we next you coaster. the and that But economy I go

Brennan Hawkins

to… not appreciate was I'm totally April a trying I Yeah that period different very and

Ken Moelis

Yeah.

Brennan Hawkins

I wasn't kind whether any it not a one. imply or trying to decision about the was good of question

a have business the a cyclically sometimes change return It business. as the is capital it's was your or can trajectory evidenced great driven Whether cash in Just of you're is of policy. pretty what But the dramatically. by you. more takes revenue that ton off

at all. dividend my measured pace was that around might grow? and raising And so That's the you a as just you whether I’m more more or -- based approach not question

Ken Moelis

we'll try as it bring No soon. back to think I

I'd was bring and speaking go I'm to me the would and we would look virus probably tomorrow we'd back to know to Again the because pretty it told be cured to you've but where have board, quick that. turn want I If back it of out pretty. I'd talk

a we market usually the have do flow help they We have reason. and business, in and balance all to our very balanced second nimble the is that side quarter like great all business. to we they, a they team also capital move the great team do move of for restructuring they countercyclical. And have And a it's cash

it and had thinkers, way before. if our of know So But went I do debt. on regular all know what because in cash a we I concerns happen you've we I that I got them got have way things like have the we do me and never of great with faith lot restructuring just team sat can a I've idea great you've home and and when do a what in no that. would by to no done couches

So was if if I because mind there quarter, such quarter of matter. sheet. a have a we balance don't there's fortress don't a Quarters downturn

comfortable the pretty we those at, why that's one were kind cash generate flow having at of free I'm of that cash with we do it. two the all So We one beginning years for specials year shedding is were because to were one cash we the mid-year buildup so quick.

think told had recommend very, to cured was I'd what would you me very prior. to similar the I know So I'd And the Brenna I virus it you it if be I board. that be think what

Brennan Hawkins

very very, is clear. That

Ken Moelis

know Yeah, recommend. to for I approve speak what have I it. I would can't say the board them I but would

Brennan Hawkins

on the MD And headcount you. you Thank follow then to for up question. wanted Great. just Thank that.

promoted a So up hired you year-to-date. that's XX. or either But think of one XXX have I total

-- needed had us that was through can So gone square adjustments some count the the the that regular maybe time, was the you you that had was just way there can help idea on happening the spurt and side. a was that to realized on MD make of XXXX too you unusual anything fast all that previously happen just you growth end of that at or you maybe, departures

Ken Moelis

talking happens -- And give you them we lot we February, around is usually those to still manage on end every And time manage a our our Well, then drop but formerly. know is payroll a of They're and and the the they year we happens off the go. they’re give sometime we what count now in lot of XX. January December we and then head like year. them heads and people times to of -- what we actively start

do people We which what as extraordinary don't all charges people our ratio management So all core investment no, we do. comp we don't or look we and spend hiring view of the includes competency of management. reasons is our our the

think -- we segment don't do year out, how beginning didn't this -- of look of at just do it tendency in some this I because any there it’s year, I lot don't in don't don't head like tried at to merits know we year look to was -- people we the really a count. we the the crisis, to it So not really during want a year. anything and this every And

if to it we -- end XXXX, was way to find there out. was at the was people So their it time give of talked

Brennan Hawkins

Great. Okay. answering my question. for Thanks

Ken Moelis

Thanks.

Operator

Our with next Please go Michael Brown from KBW. question comes ahead.

Michael Brown

Great. Thank operator. you,

kind just we're just could up the mid I end obviously was of Ken know here? to -- the cost year, of variable be I’m down that you that year, get October so the closer certainly -- but I knowing XX% about structure comp end we a corner understand uncertainty the any ended curious kind earlier, are of in range sense -- year you the lot year revenues end in flat the is that follow in for compensation end of could and think earlier we now greater XX% October just a year. fixed as mentioned we how kind full of this get of comp now there that the comp before of you to something Now to towards discussion are are up a year perhaps that on know could -- ratio? So, that year wildcard to embedded ballpark to and I cost the election a date that to last towards I -- around trying there's -- where as ratio an but the which of the kind if a at full sense wanted

Ken Moelis

not -- and is Look we great the but to clean. the if quarter. said -- had back -- give I'm at backlog up think to going third we very not it's not you have a we We strong look and run for quarter think it's XXXX, our fourth is pretty it's a quarter clean, of third guidance our -- rate I

don't even we going So say don't when on second quarter -- hard have or of a think the Look shutdown quarter especially you quarter and the of a stoppage that -- the complete we first any business. how have to see I about reflected comp virus second think business environment. -- can very a we natural XXXX

again together the if what into completely -- was year whole was first blocks second to trying three the for different. blend distinct So Lego coming the -- you're

at fourth what you it see a the but on way think the The and third can basis. third you think I if be the natural about is will look we queen the is, business

Michael Brown

lot we cross a weak, full here border been strength back at a but seen have least so weaker and strategic has quite of And large yet. had haven't and not of have And you that certain and of mentioned the seen backlog in because drivers pandemic we've the cap been stronger pockets been there been M&A areas that bounce different. had this turnaround this have areas

seeing at I the time. So how of just backlog also are, key activity you're the Thanks. that what then there key the of themes spiking impact in supporting of to some has Europe? in about strengths your what over obviously over, if would Europe the you there? deal And and have characterize sort wanted are some What been hear this there cases curious

Ken Moelis

Middle with some unbelievable exposure The Europe much lot is But that the lead does. of I leading, venture people. involved I headcount. as good the franchise what Europe. of been think long We've things. US advisor there well. No Europe. as in it's We recovers higher. have US time do even, IPO about the They're the East never Does is Aramco around doing a go feel we some to is in tell US? get can't is have a doesn't is better profitability great has from brought these it around that I almost how the is that activity Asia the strong I We and about. part maneuvering we're US that strong, on I the think were is the and significant interesting velocity our in nobody you I we deals it is The world been everywhere which done our doing it even our of strong will since fairly talks Saudi booming Australia. have The joint

economy. testament of a to seems really, our go think the mean really can't good. be really real have elevated fine I a markets don’t well a are that, pretty think think doing market. well, doing as all had it's said I mark. everybody I think I that And bad doing of GAAP think even is I I if we businesses to can't doing really well. I and to is M&A fairly maybe continues I well. very Restructuring

Michael Brown

yeah Okay Think again. appreciate color. the

Operator

ahead. comes Our Jeff Please from Sandler. Harte next question go Piper from

Jeff Harte

When Hey asked, drop behind look from ups. have worst of the couple COVID business is but follow been is guys. M&A reasonable to us good we think of afternoon it kind that a Most the announcement at the off? now just

Ken Moelis

Yes.

Jeff Harte

Okay.

Ken Moelis

are. think equity in we're things but met still do leaning amount is and that the answer really of I a it middle, the But right. especially they home know and is run from strange things I are and and answer private and my viewpoint people Because want there's people people not I've To seems also companies into sounds are institutions of It yes only we're believe the that like lot is to uncertainty. I who significant. still --

Jeff Harte

megadeals But shows market? deals Are a the and can awfully outside lagging see Okay into being spillover of deal starting data middle from kind deals kind industry the more of of the from mega the some we bit. counts we really see of look strong. as and big you to kind

Ken Moelis

call back. I that other the seeing middle else. different that the it come around. the thought when guys got see of all was saw said and having way [indiscernible] M&A than feedback something I've everybody I the July market in I was said I market Kind I you

coming the deal market, to be So the that what big the saw. I community I saw just and went being -- felt thing -- me, that's mover -- I but back first quickly I saw then sponsor but that may

Jeff Harte

Interesting. Yeah. It’s

Ken Moelis

think I important. institutional the want to that that it's and I financing big to enough clear is that's market be -- access do

from the -- be the and in fully we the flow M&A pay now general of trouble what a in deal market is think have to market so which -- the do sponsor deals here -- you bank I started I think banks and -- it do then subscale -- to does $XX are economy kind but the -- middle $X to little call billion think is markets go bit be -- could be -- markets the see and be that’s back there to billion the having money which Banks just banks. financing that a there’s some fully institutional in access to can and anywhere they credit little might smaller like careful. was the real backed have that aren't I think than banking not because coming lag think to some there's think going in price credits I there's I -- the that might you I a different from system. -- troubles

Jeff Harte

-- Then you. thank Okay.

was I and restructuring that you historically business XXXX? heard the mentioned top to range it's been that restructuring. It of markets close right You you that something kind contribution earlier earlier say about capital I -- to thought in of revenue of -- the XX% did hear I from of the did kind XQ in relative say

Ken Moelis

I that's Yes. right. think

that's -- right. QX For

Jeff Harte

Okay. Thank you.

Operator

question-and-answer like concludes over for remarks. closing turn to any back This Moelis the I'd our conference session. to Ken

Ken Moelis

on. Thank all for getting you

be and an XXXX, would to hope I us, believe we're from we office time will somewhere election Next home. from not behind and hard talk, be though talking it

we'll So Thank and stay good XXXX. you safe you. in see luck,

Operator

conference The today's attending presentation. concluded. you now has Thank for

disconnect. You may now

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