Moelis & Company (MC) 28 Apr 222022 Q1 Earnings call transcript

Company Profile

Participants

Chett Mandel	Head-Investor Relations
Joe Simon	Chief Financial Officer
Ken Moelis	Chairman and Chief Executive Officer
Brennan Hawken	UBS
Ken Worthington	J.P. Morgan
Devin Ryan	JMP Securities
James Yaro	Goldman Sachs
Jim Mitchell	Seaport Global
Manan Gosalia	Morgan Stanley
Michael Brown	KBW

Call transcript

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Operator

Good afternoon, and welcome to the Moelis & Company Earnings Conference Call for the First Quarter of 2021. To begin, I'll turn the call over to Mr. Chett Mandel, Head of Investor Relations.

Chett Mandel

Good afternoon. And thank you for joining us for Moelis & Company's first quarter 2022 financial results conference call.

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

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

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

turn questions. to As with this him last Moelis. with if call should be is have and Tsukroff many Joe. will you any know, earnings Mat my I'll contact over my that, replacement you the of call you And

Joe Simon

Good an quarter, activity average largest earned increase results achieved quarter everyone. revenues to transactions. in adjusted completed first growth our XX% attributed of prior go and Thanks, of and and revenues fees revenues further of was over the the higher The I'll Chett. the financial ever. our period M&A first afternoon, on representing We business. year primarily On million then our comment through call today's on Ken will increase $XXX in our in

expenses. to Moving

largely first Our the comp two past ratio ratio years. for XX% consistent with comp was our quarter

XX%. non-comp produce quarter all was first of ratio XX%. a pretax quarterly combined margin to This Our

underlying first the our quarter. rate was to Moving corporate taxes, tax XX.X% for

XX% the was Approximately X.X was connection million of market And of repurchased, open with in million. to shares, withholding. Regarding RSU totaling buyback $XXX year-to-date approximately pursuant we've XX% tax the capital allocation, purchases. buyback other the

the of declared addition, board In regular per quarterly $X.XX share. a dividend

remain sheet a we funded I'll call excess no we our debt. of maintain balance now fortress continue lastly, always, over committed returning to with turn cash. And As Ken. to to XXX% the And

Ken Moelis

Joe. Thanks, good afternoon, And everyone.

we Our new strong, been environment business has The past see momentum volatile the activity franchise. over remained in to and the positive continue quite quarter. macro

the deals As I mentioned last generally of has call, time on elongated. completion our to

no advice largest world. to platform dialogues M&A be been as continues clients in activity. has and to Our disruption innovation seeking There across slowdown the continue driver the of transaction fuel

Our non-M&A with in line remain averages. aggregate historical in revenues

of has capabilities. to is as markets our expanding restructuring there in its begun the some and been distress Our more have franchise team conversations have capital signs market

to vanilla plain more that affects adversely structure participants market volatility As strength. and directly plays start require markets, capital to our

volatility business a allows internal our We integrated through built and products, across will The our grow difficult that external key all And provide model coverage to leaders clients. across our finally, continue we're decisions. fully platform development globe solutions to us make to seeing everywhere the talent have we to hires. require innovative of which

of that very optimistic Volatility business of remain decisions. the I be Moelis clients number in difficult why Company. advising need change, that's increases are and rapid & And the of We through made. decisions about the future to

really you all just and as Chett to Moelis, and Chett job like his well. hope to good to for great your of wish done you've a go everyone we we be adventure next I'd questions, banker thank Before at contributions. a

up. that So, with will open it

Operator

UBS. line of is question Hawken Brennan first The Instructions] [Operator you. the with Thank from

is line Your open.

Brennan Hawken

another We're starting M&A-focused taking you a last exactly firm feeling about similar heard risks there playing could lack how we how uncertainty from through call. are that Ken, really, far the that What's think of bit This is the the move extending. little the seeing that? on up the in impacting hear on – in as quarter increased afternoon. you geopolitical is out on could comments really as and my of clarity good advisor that just some of morning questions. is to end some here Good made this to the they business. velocity are you for we view Thanks timelines the good to that MA& your year? do is environment. end concerned. And so up There And

Ken Moelis

an what definitely even I it elongating I in process with the quarter. agree didn't probably, it seeing fourth I that, And Well, and understand on Brennan. probably started said the of Yes. as as elongation call, we're last well

of volatility middle started that the December. of as some started So, elongation in

And two week or on happens a coming what delay either possibly people extra so, or or weeks market, it takes is to to come conclusion an to transactions. few

are seeing in it's business run. business, in chains, happening bull values get it's the It major think tend we're don't institutions technology. of want The daily. you see what's advising also we're and the create on do of business. if course making speed. I are industry when at that. their normal that is underplay decisions. is is the greater a in, interest there about in when And to and But volatility the elongation in to to happening energy, that, market, happening we are increasing it's outside a Transactions done so, short alternative we in happening And decisions supply in in does rates, that

it's as funnel, the the I ever so, is And top as think, large been. of

transactions reasons to to And will But because positively and very help the make so going term a I'm those guide short never have forward. the life inclined our of the company ability people one these decisions of and as of own. be that their we to made it's number again, have

Brennan Hawken

Thanks Okay. for that.

success market that's part important really your a you've the in bit franchise This of lot Just a is little focusing the and market. sponsor on to there. of a had

you commenting seeing you behavior to any bigger you activity? change apply comment what among seeing I opposed that where sponsors maybe assume are checks you seeing you parts whether right as getting do in impacting tighter? dealing on of that financing, well? now? not as some active cohort would like that you trends financing general is market are maybe the are would on there to sponsors equity But are with the And or or where are seeing you're how could sponsors more see So, that What and conditions are

Ken Moelis

withdrawal say I'd sponsors pretty anything. of are don't see a I aggressive.

amount going into as a Look capital rapid sponsors ever. are too. sponsors as is increasing rate at the is the think I aggressive the different very pockets, interesting in part of

Some strategies. new of lines of them, they business, new are going into

to I think it the banks the see and think last dis And we I intermediate that the few in we're next sponsors fact literally transactional started going private equity months. saw years. credit I in in talking about few the

financed As manager the buyouts largest is asset several of hundred through percent. were alternative almost a

or that to we're was seeing what sit an going So, week want the with as come prices won't they will year sitting you lower asset, a be so That's are a asset volatility But we asset to that of to to I put and negative, set happens you realize what on maybe and today monetize look asset April that mean And the quality is and at strategic sale That's if volatile they one elongation. week off going opportunity for here. two. launching or asset might the It is, see to to it a Brennan it by by XX, are work. today, a might could end a two. the price that whatever put probably capital like market. of sit secondly, to think not

active their in diminution see in not I put front foot I being pipeline sponsors negative. the sorry, continue So the sponsors. little and By on shouldn't – it the very again, to from way, very

it year Our ago and above XX months was pipeline we a pretty good following had where that. is

So, we're lot of activity. seeing a

Brennan Hawken

year specifically, Sorry, it was above firm for pipeline, and that wide? about is that's it's where Ken, that last ago comment a your or sponsors

Ken Moelis

the on have in No, do my… sorry answer I total. not

Brennan Hawken

total? In

Ken Moelis

total. In

Brennan Hawken

Got it.

to So not slice up or it trying anything.

Okay. very you much. Thank

Joe Simon

Thank you.

Operator

The J.P. from you. is with Ken Morgan. Worthington of question Thank the next line

open. is line Your

Ken Worthington

like in If are pipeline to and Hi the that supposed the at jive about look good with look exactly data, seem deals to afternoon. we deals extended. you're questions. seems of how pipeline think Thank it you the is to close the the for close, although to we doesn't really public slowing. maybe pipeline, that pipeline describing the But is the taking it's,

the data two how converge. points sort maybe So that's of

over to because either all, is kind the a reasonable was ago of largely explanation the sector, a it's is ever, as deals pipeline or is of by participant the of number or of but time. it's it pipeline a being at pipeline that And type, here? strong or longer period is the it maybe as same this So, at extended, nature closing then geography, flesh time? as year changing The out

Ken Moelis

So, think your pipelines are looking the backlog. know different in stages one, again, you the fees I gross are completion. point numbers right of Those first I at. don't the is have in that you're And

So, Ken, I don't see the public numbers.

him consistent with that to we settle push have to a planned ask that to leaving how happens to three-week last would have to they two assignment awarded might if decided, him elongation. the off week going see you out But of come fact, to process be week have could the can the interpret two an happen. or and call to markets to could sell market company what that call just that markets volatility. That’s now or X, company another hey, from us; and what wait a and and in we’re Chett were outside. In is go that elongation I see that’s down, And the been

confident, coming to market. We’re that pretty all of is

meaning feel of last we pipeline it’s as restructuring. time definitely because of this on So pipeline And M&A, it’s the in there could probability the in year, could have be the be a five consider good it it up very in you sell in to five better bidders. about opposed a you makeup but in M&A it, asset, backlog would terms of better to sites, down side we it’s side, sell have going when sell closure is you’re there buy bidders, a which

transact sure whereas if you you’re going the – going sure usually you’re not you’re pretty to seller, you’re you’re to transact. So

you Now be. want that’s where usually to

on get as point it I the that’s pushing the go and the where volatility So if it – being backlog like if off. commented decides people good to and I keep market everybody to pipeline, to feel doesn’t

– going the that’s are the events those combination So of that’s on.

Ken Worthington

got in of Okay. the rising If a rates, got got extension that number be these CEOs factors factors is factor we’ve any bigger we’ve like of about the on for these clients, factor with with conversations I each others, we’ve to may time that just be I be factors there geography So there of differently being seems dialogue making to got supply we together? over contributing than in are the to should deals all inflation, contributing what market? of come or to your think different to paying this Is may time, or maybe a to and we one we’ve in combined terms of and And assume more clients. Russia. sector resolutions depending those one the get as the the sort of attention they shrinking decision be chain, kind

Ken Moelis

those all together, the when the is resulting volatility. fundamental – I in it price all put think driver you activities

Capital’s driving Interest any we be see historically are could seem still low to and rates, transactions you available transactions. yet. not enough see don’t fund that Now rates interest non-closure. to but to do rates

of is asset, think look I is about all the but some what’s you discovery into back asset volatility. the comparable a discover and prices value also comparable you changed and the of or having environment that issues ago, very launched where where into no seller a you’re somebody is could have it. you’ve at. talked desire to If the do days significant in longer finality to you when five quality situation that from find you’re Price enough they months transaction And is aggregate transaction couple coming down for five and they And to have changes ago, have. asset. volatility price outcome a an companies people’s a months the it’s closes on the you quality So that of for you of to get price the indications happening agree of price where go willing your that want have a to buyer pay market the

pretty long invaded a way Ukraine they’ve talking have it’s look, those quickly. happened It’s activities Russia rapidly. saying. of So significantly, pretty changed pretty interest about – rates you’re

I and would implications And so attribute had to volatility really of these and most to we’re price sharp what about value. things talking prices of the

Ken Worthington

Okay, perfect.

hoping XX% the year comp comp operated revenue downtime to should best at last best – question, for the the ratio? quarter, How planning level what start at worst, planning what ratio the you that maybe about for level protection move or higher. ratio this at comp we Just at this would that think to for

Ken Moelis

At on we’re confident wide this we’re around comp and pretty expecting, point, seeing, – in range that planning of get that what I’m pretty a for. under ratio’s outcomes

say I’m it's just barring I covers the going fine. I a it XX% So that of range be outcomes some to think confident lot XX% catastrophe, of in expectations,

Ken Worthington

great. Thank Okay, much. so you

Operator

Devin Thank line the The next you. Ryan. of question is from

open. now Your line is

Devin Ryan

healthy your of evolve higher what all here a in kind what you’re hit with but for the may maybe because you’re market the Hey company, how Joe. that points other just the great, for good the mean the having from hundred pockets conversation where of you And the could that’s afternoon, a that some to think did Can maybe those. go a less angle rates restructuring maybe of opportunity Ken the M&A, we starting least to a of and little back that, normalizing come for about mention the based couple of then to on is? confluence see but and along expectation healthy kind about rates impacting it factors isn’t on is much at economy. for kind you company dynamics talk restructuring broader implications Want or stress just as of basis

Ken Moelis

without but So yet, expected the we’re say rates. XXX, paper particular their you have would movements, of just operational X% of are right to or team XXX basis even as not rate a a lot now see there. on There’s I issues, points that a yes, restructuring X% right. of layer lot is boom seeing we’re going And individually of own There’s it. restructuring issues out issuers. are And working. companies look

next but liability as, not of to a I look, speaking shifting in think management, context XX chapter be I how aggregate. need near liability a them paper. More kind around market address of could the of are management more more or I’m them. that obligations corner. do the think of in through the just there’s go doesn’t of in lot on those the get around to

get effective. large mean because at rate, need only had all Wall of the X% You if default of X% the or we X% the of throughout to would teams I restructuring paper out a Street be there. amount capacity a number XXX%

to as I called just it’s full going and what the think up it. So they’re expect happen. to business I going confluence But things said, of warming get I bullpen think a I matter in restructuring is – be And a – we’ll triggers of in. to going it’s the it’s

based supply an cash on attempt to much, too transactions do five spreadsheets Excel of and they too when if out out predictable X% have would pretty influences X% didn’t years chains, change technological you predict be think rapidly, it you wrong. I turn there’s or their be interest people and lay rates, energy much or had unusual flows, moving to costs, those of well, this models

Devin Ryan

Got it.

see it? that just So starting backdrop, that a way the fine stress blow. mean is that to final you think the to it weren’t this just M&A still spot but start point like healthy edges I and to in with in a just that have for a Is relatively the a can you’re on scenario, around about to great companies put maybe

Ken Moelis

transact. for flows for is the There firms continue I the think private of in will equity but happened XXXX have firms I will new transacting busy they operating result private XXXX, dry same M&A guess of both that may by transact. will those is you both that tell both the new and at to see so I and want of strategics time. last to into the business kind market it’s that the Yes. distressed both normal this could back a a my hyper call for – while, – market, you capital opposite you that but have a did a M&A And a not but market substantially the can the have was will The markets will fact to market in come we be that and market, healthy, up to transact you, do market. – that not market the distress will while. look restructuring it’s hard markets – the I there’s in – that some impacted I’ll don’t are the markets healthy, Look think for in activity stress COVID in

Devin Ryan

Yes.

business, year footprint great. of follow-up appreciate, markets also capital been focus just there, business a XXXX. that this phenomenal coming has we’re for the on here Okay, quick And the of in off so expanding and

but just is So maybe of was it of you’re just about a four business. question hard off looks because quarters just growing a to right or conditions in think like business answer, normalized like it that for what that row about this were think is XXXX, kind the like expanding to what great to footprint trying

to of and more a it kind can markets of and understand broader capital little value. bit in just that about are bar in that the raising you a I that. that to maybe of dislocated of near-term think I’m the of markets high that, or also for piece just guys kind you just growth then it’s connected So trying is, not capital active be last you how off resume

question more investors. little a from color there we get to it’s trying get just a I’m So because

Ken Moelis

think is year. much this grow could – the bullish very a to I’m expecting capital it growth growth a is substantial. The And I think with be I’m the smaller having It on is headwind by way, that there – Yes. They of pools structured. capital real markets. than hand of and like the capital. the SPAC market large structured are world the way just is holding Yes, activity. I those trading much or more require structured floors ability; was finance, so

I’m I become, grow grow. expected would I’ll it think business. to just this I we and could year leave, – to on bullish would hope very continue I we – but that

Let’s just that leave it way.

markets. growth large have for plans capital We

Devin Ryan

else or it. Got to size any Is it’s out revenues whether us? anything kind that there way to of or help percentage business, just

Ken Moelis

that’s getting quarter, to the I’d of It be, XX% close. it’s be think close first I getting business. say I think the in to was to

I’m I I’m think me wrong. Joe if stop right about that. might

Joe Simon

Yes, that’s right. right. That’s

Devin Ryan

Okay. Great. Well, All taking right. much thanks the so for questions.

Ken Moelis

Thank you.

Operator

Ryan. Mr. you, Sachs. is The next Goldman with Yaro question from James Thank

Your is line open.

James Yaro

Ken, taking afternoon, for thanks questions. and Good my

So your M&A. data. than quarter this expect this continued the I revenue higher of was reflects and website growth outside traditional Dealogic would significantly

these obviously have perhaps You the plug run When you bit would M&A non-M&A cited sticky more XX% more durability a about for or perhaps revenue they great in rate forward? have just your think something as revenue when going versus view say can markets. countercyclical. more we capital you we businesses, your – greater Are

Ken Moelis

be said, of really I measuring never on bridge to to advise I like Other try say, way in of transaction you’re than result on that I I answer. a – Again, going as markets, measured that. making the don’t not a there’s boards to a great lot the might can that lot the decision have and in public so we

be the I we’re extremely missing. contact they’re I brought things you’re the world future I I M&A a think quarter. generally not it in in to go and say, M&A, numbers our on corporate recognized. Joe things traditional positioning of than don’t do doing could of than themselves. this to being again, to advice but it you But, were you the why, didn’t show would company what think looking more ask might under be the afterwards of strong answer. that the That broad more and involve how will through, activity strategic know complexities I consider at. I was Other that think may But we’re inside is and more

result In x an purchasing selling asset in a listed. asset when definitive maybe terms x, of say just not I broad, that’s transaction – doesn’t and it or

James Yaro

in restructuring Okay. see decline well, And you That that’s little makes in world do a in we sense. a advisory enter revenue? we if did more business, think could bit capital business recession. do of M&A then economic a sort the perform on something Maybe just if deeper your economic you troubled extent, just To that think a we to dig what a could which offset turning did backdrop.

Ken Moelis

the business do because of think is size So gigantic. I the market that, I restructuring think could the

it just corporate There’s up up don’t from I Now, fingertips, but a And the the divide That’s the paper been my break team. we’ve do way not remember, the of on lot why don’t a general there. it out issuance. have there’s lot finance company, of restructuring we out. we team set

was market in back a on restructuring the that restructuring when much XXXX, again, of the expertise. – bankers smaller out lot getting leverage So we working were of a – team, had XX% with had the

could a if would of So parts think a think blockage but was advice. I’m could that operate fence of And did $XXX one something has we it’s we the we because have needed back or XXXX. double I exceptional. team any revenue not restructuring our I move model make I believe there – or it do. recession million prediction do as XXXX, like a – XX% that we everybody think of I we – business. deep that’s the We of Nobody talent over around our and company, trying and always is their Yeah, we like more, possible. a Could could think that? to here, in I do have

get very and to vanilla better it are the COVID, by to plain financing large I came setup it could active, very an And at a – believe in that But way capital are than quickly. went be do the was of and capital markets, as very large a think highly beginning environment structured. that three it vanilla they it most number I was the month continue yeah, number to So was timeframe active. markets it plain in to

are We we’re would I structured. downturn, structured. go I setting are deep And a up one highly thing in doing is harder wants The I and there team know got that. put was financings a vanilla, do and do downturn, regularly know – to to a things everybody – to structure a much in if plain think integrated some fully deep around large distributed, in we’ve great

that think that I environment well. as well in would So do

James Yaro

really seen – And then dialogue different Okay. so But That’s interest you’ve think you that M&A do just a you back helpful. just to one of I the lot that’s not at Or affected you would the that affect the way start rates said you level other the and world when really M&A historically, think know quick do rates the and to right look or what not so it? about is you’ve backdrop? different think interest of have completion one, far. M&A cycles far

Ken Moelis

answer of the XXX. because I on basis great so moved little by anticipatory. and it – like feels points, yet the way. when A the XX mean, both, have they’ve don’t I a moved is market only feds

I hikes. already So the six rate – maybe anticipated markets don’t

they is an actual anticipation a will there are the that much think, that that transacting transact. as I firms and of is hike. in fundamental – there it’s But change do as business. in the again, the business enormous amount out the And of So there’s

significant they rates would the XX% that repurchases, got no put of now make and market. do their and shareholders difference a would M&A, XX want lows, turn significantly would decide, the they part to them part their significantly, I way, a say money points if a the amount valuations is that basis went XX, actually their ramp own of don’t care largest a would downturn, of enough that ago, stock or down there the again was if the market XXX there market, went I think This stocks on they’ve on do chill of by our at XXX in years take strategics maybe up M&A. time and a just business. up – all to to is And the business. have engines of So would the

So yes, a I different it’s business. think

think I what have of I don’t It’s it actually will business of you different a when little it’s great said. a and a moment. answer create both of that

James Yaro

my answering questions. for Thanks Okay.

Operator

Thank of Jim the you, Yaro. is The line Seaport Mitchell Global. question Mr. next at from

Your is open. line

Ken Moelis

Jim?

Operator

is line currently open. your Jim,

Jim Mitchell

Hey, just their was sorry. one if to does sounds we if it Ken, matter activity. it the did Good a that start we wasn’t on me were pullback ago as too flows. to recession. models back sponsors, Thanks. Why But just XXXX, I what. long It – activity’s we to question But a in story and goes about pricing The on recession, feel financial the significant really that flows now back. different no maybe was that worry afternoon. a sponsor about going fed financial recession is a mute. more happen pretty it the sponsors financial far? to you that there the have worries in there understand look valuation activity pulled are and there

Ken Moelis

to of material time. Jim, the me test, ahead this given study you wish Well, for

to I to now try So remember. got

Jim Mitchell

I Sorry. apologize.

Ken Moelis

a if fed – at think I of move really I the XXXX, remember, the end right. made

category if remember going at there remember. was was move quick really they through in of it alternative might I to I of I they the pretty the later a was they it But fed raise. give by happened, thought aggressiveness then a the the There and I have real if By recovered going think of they I’ll down I the COVID, XXXX. a the volatility had crushed at I lot there the three came equity. back markets have in an you economy volatility. end the asset the shut and amount I they coming I made way, think XXXX. didn’t I believe markets hard it changed it’s mean, again, changed. – even were of pretty though, from – a also lot indicating that some they – private. downturn, were – think think way, would I quick by end – was reported XXXX the private that but pretty in was indication and the because and no momentum years to

XXXX, different don’t I think of equity – go the just XXXX. would again, at capital bet didn’t these today. were at other. the back in you today, XXXX they do private leading for and and of resemble size allocation are the I have, doing I’ll look they homework look give firms the of And those some next – look accelerated bet look at or scope it the markets markets I’ll fundraising each the to extremely I and call, But early don’t

Jim Mitchell

Right. that’s, pivoting like to I lot think the buyback, you more and Maybe though, you… think appreciate It a the color. they’re sounds I resilient

Ken Moelis

say Yes. other Can thing, Jim? I one

Jim Mitchell

Yes, please.

Ken Moelis

go whole besides be that feel? that they has what companies, they’re bet growth The mission. a being the private on entities thought And Hence, valued and public valuation what these – think to fulfill back the changed. just, I significantly they’re companies. of going There’s going lot environment companies process entity going do They’re of is these as to Hence, to Go to growth growth. transact. how try changes they are, those they how to I’ll that’s companies. different. they’re deliver can

Jim Mitchell

year-to-date, How Appreciate you your at buybacks, affect of X.X sort Right. more of think year. you less than be maybe thought versus Are just what’s process? million last April, you’re I to signaling Does think that’s or specials about the Right. think on shares, that. more all? going specials I include And the buyback, buybacks. doing that you if

Ken Moelis

said. I look, Well, as we’re committed,

it. as – We’re it’s the there. we do we the And the quickly sometime was we committed way aggressively capital This market again, think excess the look, what the felt year. time the I out into best we to the in of just went we between, as to like, pretty figure returning felt reason beginning is can valuation called our

little We’re over trading X PE. it times a

multiple. I higher think as trade steel there companies are a that

you take as is in as cyclical, cycles That’s that these so a our we’re valued again. was, feeling year XX And we went we was this out see we growth in secular like so industry ago – aggressively. don’t being as will if it the feel

of that the the a excess board going aggressively can series and as capital make as on do is capital, XXX%. what will we’re with soon to depending and quickly return you but to our a decision we factors, We

Jim Mitchell

thanks. Okay. Great,

Operator

you, the with next Manan question Morgan Thank Gosalia line Mitchell. Stanley. from of The is Mr.

Your open. line is

Manan Gosalia

you smaller good be color bit small, what afternoon. I faster deals, given i.e., to on different can know seeing nimble that that little of there. in could and if decline deals was I tend large. buyers Hi, sellers medium more the wondering give and sub-segments some a you're

during across that you're now something that been saw the we pretty is that has consistent or it right board? COVID, seeing So

Ken Moelis

availability at I'm capital in not assumption. sure I an agree deals of with problem. of an was availability. COVID the, know beginning is smaller COVID kind Literally assumption will suffer I there. that out that of the

an becomes issue and availability first The now. totally as for capital right up, companies dries smaller available it's

DOJ the so three getting ago. see large don't under because focused attempted just I actually probably do there same transaction that hung years by that's transaction if capital, attempted market. being large under administration of the or out So there I are, think pressure that if of just not transaction I fears two having today. transactions Not That's of because would've think not trouble, price, situation. that in the is the and the because the any are is of been

I you don't say see or smaller I the reports that and read know that your think pressure. that I I've yet. I see, some – the mid-size of can't are in that under So

going they're in along think I manner. the same about

Manan Gosalia

did helpful. ramps missed we up but sorry talk from Joe, expect you Got this, I as up? that Should here expenses? it. travel about ramps non-comp That's And if

Joe Simon

kind looking forward, pretty only for say I is of would we of a but from XX whole landing reasonable not I'm I that, that areas think kind quarter growth mean, feel that looking comfortable of so lot I pie, a a here. million

Manan Gosalia

much. so Thanks it. Got

Operator

with for Thank you. question Gosalia. The Mr. next is Michael my Brown KBW.

is line Your open.

Michael Brown

evening. Great. Thank you, operator. Hi, Ken, good

Ken Moelis

Hi.

Michael Brown

business? growth contribution I the the markets the in the environment. that that traditionally to of but to normalized non-traditional hard down in right what's anymore, question And in So it's business. that capital and a growth is flag is, about you've given you to of that my businesses? now know the seen think normal nail way experienced still Just really restructuring XX% was XX% M&A you the revenue

the So to business? to about still just wanted right way I see the if think that's

Ken Moelis

quarter be probably below It's In not will think long-term. first the that. it I over the it's it's mid-teens.

quarter last I the think fourth amount of that new call the on said a large I did not have business.

much capital I lower the The denominator a is a rise to I think anything there that in will it percentage a a end By money creating and put be system, But the year government of markets up year of had last do I the of abnormal that very I for it over could where as there's a think has XX% that back so is XX%. market abnormal business. larger business cause changed to zero into into become interest, money only interest restructuring think fundamental unusual. flushing just the was yes, it very don't for thing was get just rates. long it restructurings. the was part larger very We The think to XXXX. haul, into and was the the year it, it to the –

Michael Brown

a the the the that flagged there see and the headcount at build And today. activity see opportunity potential MD you restructuring to the down, what pyramid or talent you Do terms perhaps you add level out the to or given down just need of set more? of that that in for a dedicated come lot restructuring And MD is to pike.

Ken Moelis

M&A which an you'd the a I in little said some amazed how again, We as know were department there gets move I at the models but put No, technical, teams it's on gets restructuring revenue. a restructure M&A be revenue, because we together and and restructuring.

move the single and entire a move pool we have we will We so bonus – can team. media

out. Now I'm and a the work would just, over heartbeat in team saying that just I'm and fill I'm just move alongside it restructuring making team

expandable But that but XX Directors wrong, have So I'm XXX it thinking Managing I'm is we five – probably me it's the Joe to in six it. and we significant. to expand pretty folds that correct very would team to you teams, but By there April whatever Xst quickly shut organized through on doing it did. we down. we March that I XXX that the XXth hit went or this. COVID work and maximizing with were and event. would always just Look managing would on say if experts call directors restructuring, XXth

us a we the without think radical expansion outside. see I of would go having to So manpower

Michael Brown

helpful. questions. Okay. for my Very Thanks taking

Ken Moelis

you. Thank

Operator

you. Brown. Thank The UBS. Brennan next from with is question you, Hawken Mr. Thank

is Your open line

Brennan Hawken

my this Thanks taking follow in one, up. Ken. Double-dip for

before capital commented should decision allocation attractive driving multiple you you. shares we in for remain buyback on If that more So Moelis the a bit – activity assume we that will we remains special, choice? attractive capital should If less levels attractive these the stock therefore at a this rest about of allocated the for that of and how maybe to – year? think a

Ken Moelis

of that math some is brand. Well,

million dollars because bought XXX do have less a We with we bunch to of a stock. special

the made very But decision make No. a based you where the believe So only but way decision a where is a going once we your a us use the a real-time out on think that conditions, look of decision good going it. make market to market fundamentally? do all mathematically that me is you're figure that this capital that things capital, on is? it it's decision to along it changed is, led if We we we'll quality can to of with basis. We're market to based I'll both board, was on if asking, use – you those happy for and do make decision to we're

Brennan Hawken

Yes.

Okay.

to it. what I continue to you could tempted joke by… that, add assess you got make was So a about on

Ken Moelis

want context, In way. the the way, by to I know. yet, by just Not

blackout of the problems is you One enter these periods.

XXX% just put so a on there. or Thursday? to I do didn't So people Tuesday want in why this that you You flexibility, don't have

to and which it. in have around to we're these decisions in make open the do periods We

Brennan Hawken

Sure. so Thanks curious – this, the on for don't the of just to just kind watch finer you put public caveat. know point a Also I data.

let would in clear I'll is public next data see likely call, call a the do to that made suggest that that you quarter either I suggests that? is basically It paraphrasing but you that data a the adjust two. air both the in and Or watching Moelis the, you not or pocket just way? not the last sounds Am does like revenue case. You've know, – that this you're fair

Ken Moelis

is a a a have We that backlog. than pipeline, larger not had we backlog

we XX I to a it's any sense If in trying there's replicate larger volatile. I by that all months post pipeline, than that's had this – then at had XXX% pipeline a I have of do when it. point the quarter We accurate We is last about months be if XX worry would of year. could time the

So it revenue would revenue... a a – I sense what don't – I back don't call you

Brennan Hawken

pocket? Air

Ken Moelis

of sitting to. markets what the busy very off Air don't these get want one Brennan, – sensed three the pocket. to for No, and in we but executing large with not pipeline to people extremely predicting months. a weeks decide organization put people I'm the not down going has that's why its and, been it's transactions better whether And or two of go-to-market happens I on think to to reasons next ability strategy franchise we is with we larger been, aggressively and than bought and we a brand markets. the than restructuring to we're our with stock. think we our terms That ever We capital us. in to If doesn't generate really is backlog us. had, suboptimal matter right for think

to problem – that's I think, quality year. the last again, execute year the and word we biggest but, continue to available bigger I'm bringing look bigger on our allowed the the I because is reason it in if market. think executing? by I not is look And And a really at, So almost last have to hiring than talent don't way pipeline the I a what and the backlog is be still are – backlog than we sorry, at I that's use look company pipeline, we we at want we

don't again matter I I data, now at, I'm it and go and look doesn't just So is. manage It telling public that your to plan airplane at me. data the be think not like the don't would look Matt else is Joe, you over that's how based I saying with them. high with to what company it on, to somebody an trying fly

Brennan Hawken

Understood. Thanks, Sure. Ken.

Operator

no Mr. for any I'll turn now additional this [Operator time. conference to are Hawken. management questions you, waiting Thank the remarks. over concluding Instructions] There at

Ken Moelis

Chett next everybody. Appreciate in you look work the thank just hard call. it. again, to we No, Thank you to all talking for your to want and forward

Operator

That Company for concludes Conference you Thank your XXXX Call. Earnings & the Moelis QX participation.

may You lines. disconnect not our

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