PJT - Earnings call transcript Q4 2021

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Operator

Good day and welcome to the PJT Partners, Fourth Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Sharon Pearson, Head of Investor Relations. Please go ahead, ma'am.

Sharon Pearson

Thanks very much, Cody. to Conference Partners Call. welcome quarter and and Earnings XXXX morning the full-year PJT fourth Good I'm at PJT Pearson, Partners. Sharon head of Investor Relations Chief today our Meates, And Paul Chief Executive and our me Helen Officer, Officer. joining Financial and is Chairman Taubman,

important cause call website, of believe measures, is are reconciliations, assumes want available duty GAAP press could section to we GAAP data statements. - which the we and the from to our the XXXX on And I to those this make indicated course These materially no I today at on that want during their and for meaningful available contained Partners detailed company's to conference disclosures Factors website performance actual forward-looking forward-looking update differ financial that refer Form we to that non with various that and statements. release remind turn PJTpartners.com. forward-looking call should I'll the uncertainties. outcomes in Risk statements in is non evaluating presentation which - [Indiscernible] call XX-K, morning, factors the these within contained statements PJT to to these our metrics the described to on that you Paul. contains the you believe issued Before over We are Paul, subject in factors which out risks these point are company any financial also GAAP over in and there the that of are turn this the a number I

Paul Taubman

in very for story our in Advisory. restructuring modestly XXXX's were In from the all driven an results you our record-setting however, coupled growth joining performance. of XXXX, Strategic run-up different. today. us Good In revenues down restructuring was XXXX, away Full-year from revenues market-leading extraordinary record $XXX businesses were delivered by with In performance. restructuring million, morning. XXXX Thank

were more treated we other results performance. restructuring headwinds abrupt restructuring that step-down us, are to greater in businesses detail. other XXXX XXXX decline deliver below previously I XXXX, pretty reviews lining The strong offset in in businesses. XXXX this our to long-term all our than from A performance After two the is much Our about sharp activity, is levels our in well behind our more decline in experienced growth results, had strong and Helen This silver performance than with anticipated. businesses our we financial set resume its will speak match. positioned of firm

Helen Meates

Total year-over-year. revenues. $XXX revenues XXXX for down with Beginning million, morning. X% were Good

As year-over-year and Paul growth. mentioned, in while we PJT the Hill, Advisory, had Strategic decline very view, Camber significant than more offset record revenues, revenues restructuring in that PJT Park

fourth fourth the slightly Strategic record of decline the quarter, were quarter significant fourth by XXXX. total and in was year-over-year. than in a decline less the down we the third offset revenues revenues decline $XXX year-over-year For in quarter, of In the million, the revenues. quarter were X% XXXX restructuring experienced Advisory in The magnitude restructuring

quarter. We also fourth activity in placement had corporate the record

we've described quarters, with adjustments, more certain X-K. are which prior in presented with Consistent the fully expenses. to Turning expenses our non-GAAP

XXXX. First compensation adjusted a down ratio with of compensation expense Full-year million down XX.X% X% from almost was compensation expense. $XXX adjusted in XX% year-over-year,

as reflect landscape. As such competitive the factors recruiting we totality the did last looked the activity, final year, of year full-year for well at full-year in we external performance, as determining compensation to expense the the year as

ratio resulting XX.X% fourth the quarter Given nine was the we've first of accrued year, compensation of the through XX.X%. months

quarter results. past, when done communicate our in we've As expense the our accrual we report for XXXX, we'll compensation for first

revenues, year-over-year. million non-compensation million adjusted XX% the quarter. year-over-year, percentage And year for the quarter, full non-compensation fourth and expense adjusted for and the for of was full $XXX fourth XX% to $XX XX% up year for a the XXXX, XX.X% as Turning Total a expense. up

the reflects recruiting started relating travel to well increased senior as technology. and fourth costs, of as the in expense growth investments travel. return step-up experience as the quarter related normal For costs, year-over-year We expense to to higher we advisor in did more increased a business XXXX, and information levels

related Looking traveling-related continued XXXX, continued at in this increased XXXX, non-comp investment business year-over-year, stage increase although of and grow IT, low-teens outside it's in expense how percentage expense the in on activity. our do expect in travel expense, We ahead talent, to to expect we with other aggregate unclear much. by and to investment

million -COVID $X per As a month. reference, our travel pre was expense approximately point of

we Turning down pre the quarter XX% for full-year year-over-year, income for and down XX% XXXX, pre reported of million -tax adjusted fourth year-over-year. the income, -tax to adjusted $XXX million $XX

of corporate adjusted the all for taxes, taxed was our provision with our converted that to full-year fourth XX.X% XX.X% in The -tax all shares, margin units been at as if was partnership tax Our quarter. as the and we've the quarters, income and pre results prior rate. had for presented

nine and XX%. rate expect value view the at of benefit we end the will tax Earnings effective for rate per to to realized for the This the the depending slightly quarter. related tax we approximately the our share will be ultimate move Our XX% the refine full share. effective the was of XX.X% of on applied year. tax year months first rate XXXX, In first deliveries, down estimated from rate we would our

XXXX. and in for if earnings, quarter. per for count fourth full-year $X.XX Share were ending adjusted, the year converted Our $X.XX the the share

Our shares year-over-year. X% weighted average up XX.Xmillion was share count

of units. for currently During the a million receipt XXX,XXX equivalents, X.X we shares we're partnership year, repurchased notices record additional an in share exchange and in

from for excess impact investments. business, to dividend an XXXX, share. per record A Consistent increase priorities, these in The March cash use to XXrd, to the investing done shareholders the units of our our March and capital $X.XX continue diluted in quarterly Class we of will to exchange Xth. past, we on board with these we as $X.XX dividend cash. common reduce has will have will focus on the per of share paid in approved be As The

that continue by to notwithstanding year We grew mindful of since a this float X/X level grown float repurchases modestly record our has past be spin. of and and the

balance the equivalents cash, back the net working ended sheet, and have cash Paul. On funded in debts to million $XXX short-term in capital million no and I'll and turn we year we $XXX investments, now outstanding. with

Paul Taubman

increased said you, increasingly by interest XXXX Helen. more been their have Thank low structures restructuring. and COVID-XX as that markets to have fueled of more we Beginning increased under these companies. pressures severely for supply risk levels business many difficult. as less capital the challenges will more of address financing and become on markets only markets, environment Recent in inflationary activity. with and financing The disrupted ultimately rate often Higher leverage, significantly need is restructuring chain companies mounting will that debt attack, drive locations and disruptions have favorable

well-positioned advisory working clients we ensure to advise are to practices are opportunities Our together as present themselves. that closely and restructuring our

outlook for current Our relative levels restructuring XXXX XXXX. is activity similar in to for

However, it before we a in matter is time activity. uptick see meaningful a of only

PJT to Turning Hill. Park

be from the secular alternative taking performance previously to pace Hill PJT at year-over-year asset record larger for is Accordingly, asset Our benefiting are a back active coming managers. trends in sizes. than record strong which XXXX earlier deployed, alternative XXXX Park Park space. light year capital And Hill business the delivered growth very market strong of PJT In with we fund anticipated. growth. the place in with been to fundraising sponsors has expect

and and financial business continues Park strong increasingly is pipeline from firm-wide PJT and collaboration Hill's benefiting Strategic the are Our PJT Park grow to initiatives sponsor closer to coordination Hill a expected have between Advisory. XXXX.

when Advisory. depth number footprint, Advisory of does Strategic considerable and business, These indicators, leading with to a spoke and This results client in in it recognition, was momentum level momentum of our In indicators the about is time we where all breadth a Even positive Turning contribution manner. business financial QX, be a we Advisory. back-end significant much track. in in quarter Advisory leading began mandates. takes helped us previously deliver most Strategic our brand very XXXX results, Strategic and of Strategic case idiosyncratic the phase this all build-out Even Advisory active story. in engagement, does, to our frequently Strategic it success remains date, XXXX that an Strategic year-over-year in step being growth to growth strong fourth-quarter early and often reflected we Advisory include it the so in margin. for our by had such still this with with weighted, function We record and of of

of and payoff our of success investments to the pace continues than is to M&A be to and the the linked closely been overall has more it far many market. health Our

practice the in investments advisory we partners to markets front, to since three continue significant investment group, the December. On our adding capital make

to We for are at In from years our and In Advisory three six this it these foreseeable headcount the all increasingly European talent now the times XX% generate XXXX, was and growth it's added size the than seeing expect we more Strategic significant Europe, investments future. more levels. payoff increased have than consistently business ago.

European gain steadily the have and win and continue region. to We with greater clients rates our market traction in increased share

say-on-pay, to Our expertise wins. investment in Strategic to leading has strategic broaden IR, enabled Camber our shareholder us more View ESG, governance, and in PJT Advisory activism,

two grown doubling Strategic nearly overall during count, has that Our mandate substantially years, past these Advisory time.

our much of up levels until results to this XXXX later financial the not While reflected meaningfully we momentum year. do with be activity in began we expect in across-the-board,

talk continue be XXXX me cool, growth to confident though We an M&A expect to prospects. in market XXXXs to we Strategic story. capital Advisory Even remain idiosyncratic we priorities. our Allow our about growth

remain priorities unchanged. capital Our

to In to our up investment highly increased with firm-wide all further Strategic Advisory our with committed XX% number the same in in Strategic attract Our directed is We share talented to that to overall head-count of lion's headcount priority investment XX% period. remain one Advisory. businesses, XXXX, the professionals firm.

priority equity is offset sustained the Our from to capital investment. second human and highest substantial capital our dilution

enabling increase enabling repurchased with began. to two $X steadfast We share. Helen number of these dividend $X dividend XXXX, us with we our As share we this a record when shareholder than announced in equivalents and we our special increasing us focus fewer are in quarterly end to a per the $X.XX position, we from are we dividends. outstanding to October, financial on morning per strong share in paid very that Even year our priorities, shares mentioned, a

demonstrably will, ahead, firm is in we XXXX capitalize our the on we business that business themselves. experienced powerful The that ago. begin a with than enormous inevitably and have and more opportunities XXXX time, year present subsided will restructuring Looking over headwinds in stronger a the

through shining engine, ever-increasing View, progresses. Camber PJT the firm-wide all the significant growth an Strategic growth biggest with Strategic Advisory, as part In well-positioned Hill on are strength path, businesses becoming results. of XXXX and Park our Advisory, of these Our continues increasingly year its PJT entering

years. special. Before a with director. I of critical work believer importance Dennis to conclude, our board our and playing our was Dennis I on He of reflect role in firm like board environment great member, our and served our that Hershey. so in the formative XXXX He in helped passing lead makes would a the joined distinction, shape unique the culture, big was

We and be guidance his will the and proud Dennis continue you. for Thank of, would that we're to the years. build support firm over forever grateful

Sharon Pearson

Operator, we up for questions. it will open

Operator

Thank take our Devin go JMP question ahead you. [Operator from Securities. We will Instructions] Ryan first Please with

Devin Ryan

everyone. morning, Good Thanks.

Paul Taubman

Devin. morning, Good

Devin Ryan

the from know any and of early whether Just revenues overall been unpack and Advisory on And I'm deals there. the that complete. you there to XXXX. push-out taking the half in the some have out-look is I in some bit I business. more hear on SPACs restructuring comments to chunky curious on outlook also Strategic have longer back want a the the XXXX Advisory

with side, partners to the Advisory significant partner been just a for parse relative in the so And and then outlook the the scaling productivity how that relevant have want platform there little specifically, Strategic on step-up quarter. is? into on two the the back-half or years, expectations less than XXXX, it's get if through those of on possible I to fourth just the more And perspective to

Paul Taubman

Sure.

tends and significantly have the that grow, will not make and I investment, then to and active, back undersized all be come where crack And that a to that on look one haven't we we're when Let that made bite to and continues all at step grow relatively it years. on we've very we pace, this back investment. sure [Indiscernible] pursuing, points. over your of two get a your the grow have to of and result, way a focused hit substantial in that has progress, continued footprint me it payoff the at number very much we when some, and mandates very and continues are you as past take still question if I a to We at but I'm

Now if came look one basis. grown the with years, you of that's see, quarter-to-quarter, the a don't, really because on of our when And which bigger, footprint at grew Strategic as nature lumpy and and XXXX were less which things at business, is they it's one-year, our no business variance numbers. to. bigger We business three-year two the hit Advisory that why how out we've the very we two-year, and much last such we it look sort just in when sync a is business, at you'll is probably than a of why you this significant dramatically the currently see market gets close over pace

way grow on elements an way individual it the from our to year business not in And as It's or closing, see a a the pack. just announcement to continuing top compelling which it did basis, to over themselves just relative is. was did considerable announcement a of as into XXXX, the at the but hit prior far clip the the it's two a years, mandate in to I it transactions as moving of as but We lumpy. XXXX look but business an present continued it those

Devin Ryan

it. Got

is about in a and the It there. guys to at And will you little the risk outlook bit the What the moving appreciate also downside, and are be is there than essentially model. thinking Okay. then, any to macro catalyst it? flattish. there? activity that here activity levels, the to but a an How on least expectation I restructuring And rates higher just about this think could or it you move indication upside that signs the are more we more if as backdrop significantly evolving? drive a your seeing of be pickup

Paul Taubman

Sure.

the So, a lumpiness in restructuring when bit Advisory. is different talked I about

there was different dynamic those What we the think that at And early an in saw were might situations, environment were has I longer year XXXX. a time. position, compressed of we the leadership result, number in COVID, situations resolved traditional as there a restructuring of beginning to extraordinarily record less business, of we have restructurings an it. fact that period in a and a were started extended themselves of and into longer. resolve XXXX, some of situations this And restructuring given take many on, imperative went and resolve our those as benign these the there to to of and

now in pretty We're difficulty increasing but that nervous business I'm too companies immediate more late system, So, are I certainly business and building and for me same, we own seeing say, in are and optimistic things perhaps to restructuring longer. and prospects, stress the that their cautious be will see a having. having the more But had with refinancing. to much companies our seeing was happen about is we dialogues fact an most to we a of the see then a and I seeing the with certainly I in going soon. to hindsight in I XXXX the in certainly us, result And will that in prepared to as the essential say into it be get acceleration for not change going had just meaningful taking we're But element change I'm headwinds when think yet happen change pressing restructuring we XXXX. it's the the cadence that we situations are tailwinds, restructuring. it I about a behind

Devin Ryan

can growing it's business, that? with it given appreciate late way if it's or how size scale frame been that and relative that the PJT I in the there. squeeze business today just to or overall integrated the Okay. any Terrific us contribution hard XXXX to contributing quick see shareholder out on kind kind of since was of but to acquired in and View, has then last context one Camber there, for I advisory Paul here and

Paul Taubman

relationships the we else more are at business more Strategic terms in look it doubled that its of broader and integrates then anything Well, it's with into increasingly look than Advisory -- introductions and but its committed increase business firm on results, see is, resources originated what than our where and to how since shareholder the is to to market-leading Strategic tell from that our presence. from what an Advisory need all you you makes us those go the and investors. if some of environment, Advisory, integrated of should initial at enormous It Because one's as increase engagement, footprint day, of circle. crisply the continue will have that it with what is to in provide the footprint. and end relationship for have the activism, the back shareholder side, what powerfully in They going a opportunity better, really given they we momentum broader is shareholder and or our businesses opportunity in squares in or at be story our

of that you just together, relevance audience. scale a broader the as it much get becomes our us and ESG helps all and greater message our All out threads, put of of offering to

it's to just increasingly, offering. one integrated going So be

Devin Ryan

there, Okay, I'll appreciate leave it I great. but it.

Paul Taubman

Devin. you, Thank

Operator

our take from Ramsden Goldman We'll with next Sachs. you. Thank question Richard

Richard Ramsden

that see And geographies product cool comment just expect going that then, rates? everyone. either Thanks. think can in the a others? market than you Okay. a that What that, or Is verticals will the your greater are Is bit normalization on this you expand any to bit volatility? are that? Paul, there market interest that within Good morning, XXXX. drive pickup think you are factors in to you that M&A

Paul Taubman

look. We'll Sure.

so volatility, asking to compare how we're by continue does M&A are bit market more challenging. to a current price activity elevated standards. it to remains have many But think if valuation, year volatility, this I parties more makes broadly I going it discovery markets is last M&A, process me, year? more the the to valuation, whole elongated see think financing and becomes you're historic what bit a when that think I to it hospitable does, to creates price to and quite on you But agreement point, the for come it difficult complicated. more

probably that that bit. a suspect I So, things affects

transactions long have very so or very embark think self we've because review, where seen there a companies that of a increase. prepared anti-trust suspect already fear continues, seen quite the of the [Indiscernible] transactions, to not of are which large already lot margin ambitious trend. I in been may I that that trend think risks, we've to I reviews add and at on

I think that the to the and with year factors probably world have that to bit serve some cause just from more probably around like, is activity levels a bit, cool elections lot with a my of sense will little European individual uncertainty you before. a the

think if active, be me, it'll crystal So, ask but had ball be to you be it I less. it'll -- will my quite

Richard Ramsden

this this, can to just just obviously Is revenue lot this back, that what secondly, for for growth longer-term do And revenue below you rate do I'm the currents think not try in just the to expectations growth is it's Okay, different Park going business that's parts the your and average do, to business think frame in what of Strategic you restructuring you but it just obviously be which the a business. talked take year going moving step revert in you about helpful. back think you What growth it's level? a to strength in there's a for market cost to are will then if Advisory, Hill XXXX? going you different the in reasonable or that in is, XX% And around maybe possible the head-count answer anyway, the point at year? totality

Paul Taubman

you of headwind do I to hard very any lift whether direct handsomely is know offset three just of get we this a is know year. answer because but gone, headwind, going I which to don't growing I than in That enormous is sort one all don't or know. had that. that we're not just restructuring That were on give in What businesses more

businesses obviously down important it year So, we water than may was a smaller much it year which may of percentage business this our have tamps is growth. one clearly of our But be today ago. a treading

Camber rates. Advisory grow at business lower continues Strategic and Our they at grow, to very Park the grow but View And significant rates. business Hill

restructuring that certainly So, the when quite I that XXXX comes to at consolidated resume you we're took other XXXX, this without all looking XXXX levels. year together, at it's restructuring comfortable a at those together in in And little the our really that XXXX years, in up, XXXX look manner. growth step retreated look at down because, But from in a at see together, at with bit. if step two our a bit to businesses to of those feel them going and years March can't then and need you look and with the look actually us that two growth you how XXXX you look business our

You other start trajectory to of businesses. sense underlying get a the of our

Richard Ramsden

a lot, That's right. All Thanks helpful. Paul. Okay.

Paul Taubman

Thank you, Richard.

Operator

We'll Research. Steven Okay. with next question the Wolfe Chubak take from

Steven Chubak

Hi, good morning.

Sharon Pearson

morning. Good

Steven Chubak

spend better outlook, I the year the ratio, comp just outlook. we the anticipating. wage given How but than talking just was about The for the did a expense wanted some comp what coming comps, headwinds contemplating little bit from the XQ revenue and general accrual impact at much were accruals competition? inflationary some and intensifying combination of be same the for inflation comp should time, restructuring we easier pressures a to higher time

Paul Taubman

Sure.

And our you be points the pretty four of of at I was beginning negative year back, We if the restructuring year, initial accrual that comp at quarter. quarters, the year XX than the we basis made the environment we've for our more So, year. the clear believed to had at throughout and and in of end comp what think beginning out the way step we first accrued the the we year. off accrual the been was played it of

I our a can pretty to that XX a saw much within comp the we've we way one of were points, bit just investing back, think disappointing exercising expectations. forward make step moving to when we're in of given our people, the is important revenues market. So, in always tethered business, And basis always reflect we bit our a quarter. and hold our been cognizant sure accrual we're if and being comp to we're businesses, ratio judgment one not view in that up want relative that what competitive overly And initial I fact of our to always our for

second I'd trade to that The really comp look as in said, need ratio say pair you thing and took is run our the at run XXXX Over restructuring. to and of up XX%. a XX.X% what from the XXXX I of together, time, down period because we

and how environment, over comes to and continue but given continue do much of year, of come that believe is down actually quantum happens, come just going recruiting it down. going see exactly down. function the figure the business it will So, exactitude. with how quarters pace you're do, we in is believe to competitive out out play that years to the to that I comp the our the ratio and be But to we to a that that need But a our time we year what performance

Steven Chubak

Paul. that for It's context, really Thanks helpful.

the actually Strategic noted provide Advisory quite sort related in you a there constructive. growing placements, at for growing things you maybe rate three constructive for but down years. a CAGR on you were the pretty recognizing What Just it's maybe alternatives? some fees, What's some as interesting over talking a face? the of sustainable that you follow-up drivers that the other fundraising backdrop XX% see SPAC revenue for as slow your which for top-line about do well, a And is context Can pipe other that and some more that drivers placement still last of business? alternative remains might fundraising of on growth placement the slowly, backdrop

Paul Taubman

Strategic talked increasingly, there Look on revenues are when total placement I think line. number this the initiatives of and because in about at Advisory revenue show Advisory, you to that a look a Strategic basis way up is the the

So, a when a we do or a or when SPAC we pipe private placement a of do placement. underwriting corporate

Advisory seeing revenues a Hill in Park and are we our in vein up increasingly Strategic similar show So, both business. in lines

continue some to secondaries grow business, in of to Advisory. Park revenues show advisory As the GP and secondary related we the solutions, up Hill

So, X is years it the understand it's nearly distinction firm as best was as I ago, to result, a think that the a on given not our I've rely pure and to you as commentary business advisory total don't you I underlying at Because it allocate and on look at be trends. getting if you'll revenue. the or think the based to try placement, unit to and

Steven Chubak

I issuance contribution contributor Thanks poor backlog your imprecision for M&A since that, seen in SPAC know and some help SPAC size there's the SPAC squeeze [Indiscernible] big of just -related your in been given Paul. related could -related I terms SPAC from results Maybe you in outlook big some the just the drop-off the one XXXX, to and could M&A overall was hoping composition. deals? -related this contribution of performance we on we've forecasts, just in more certainly a a SPAC had if I in outlook. in -related and even see

Paul Taubman

Yes.

Advisory, think outlook was I my for SPAC. it when I gave inclusive of Strategic

pace. near continue do I so anywhere going on year ago. ago last also we're We're the or at that market to to last just staying of seeing I none was think the more market strategic year on we certainly this increasingly lost not to so those. than that out was week a point It we're so a We year of totality the will us, relying frenetic in just but to that announced were that market is high-grade across transaction and that's enjoyed case. of we we may we tolerating get not expand ago all the a year. a may and the be to in of to levels we geographies all only see an the that a year our marginal be focused challenged or transactions, it continues SPAC that And highest continuing products situations. significant was industry, dialogue and said on lot the

to they're So, and in we a we're companies the clients their as markets about And underwriting start we're are to sometimes to because likely one holistic who of see opportunities issue. best be that the day, to. if transactions delivering you're best and commit trend, have to advice. relationships, do, starts end with about extent markets with advice, talking you enormous broader about the we're standards firm to that meet were our have going about need conversations But the own as business, I'm capital each prepared there of clients, the But to loathe capital these to more time with at advisory. a

strategic with issue a to starts it particular related industry. Sometimes

Sometimes it tools beside we clients But it'll is just connect the activist ultimately in the itself and the our to out what ways business. to engagement we with Advisory clients, and Strategic have manifest relates to build linchpin point. as more as serve and was

while by sort and move for and along sense, on option, what's as our there's we're we their and how not technology this solutions and we focused but do to particular client clients. of right plates, SPACS firm we our do transaction all is organized an if it further just integrated using makes we're agnostic capabilities, the and can talk and how that how we but that's So one have relationships a if to opportunity, about unique makes will, market or what type about Our more is advice the a firm individual of around are, it's much specs clients

Steven Chubak

taking Paul. questions. great so my for color, much Thanks That's

Paul Taubman

Thank you. Absolutely, Steven.

Operator

Michael from you take will Thank final with our KBW. Brown question

Michael Brown

want Paul, Great. some the talked Thank you to on little about been rising commentary mentioned you And growth prepared your franchise your bit Most remarks, questions touched Ukraine you, in a There's of have on the but I then with tensions in Europe. of XXXX, my about there. did on uncertainty elections there. in border. Operator. the dig there's also

Is just hear activity it's or what quieter is about the but wanted little seeing region generally to of year-to-date. kind is year, in been in I still still early bit now? this the So, performing progressing activity know I at how time? there it a you've right

Paul Taubman

which for matter, think the they got things is both you for and an to we market continue we franchise. are global grow are year. can I'm sure because we Europe opportunities to to coexist, continue year's question, us see that opportunities the not story of levels. the appreciate to those idiosyncratic our is of I growth may really and a European both It heart be challenging as which presence. correct, to build see this our I enormous And out last will enormous match

I there and takes. puts some think are

firm where just some grow two year amongst you've activity and much the to -- see our from corporates, continue of think much we're sponsor it, tensions year. well quite you a is. of you up, it we're in still than and I and of with function much but than in in less I our how last that world with said, and we're comfortable time that there. can at continue the probably it mindful are Europe, see seen very building out French and Europe. just to capabilities a tethered elections unease a you'll this and the prospects, suspect different have record-setting going to regardless less the You'll build the that may one pretty of more no as what and rising we're macro, client how literally macro those again years, I U.S. we're the rest bottom I think resources to resources committed, growth the environment The suspect are we European that around we our is long see but

Michael Brown

on one It then, outlook and give if XX, headcount in us you looks better is some it And great. at fair like but it's And talent the the last then, Obviously, Okay, update? your is is than your that commentary ended would assume Partner terms competitive How it me for of what just front. today? Where hiring? just that here year that idiosyncratic, a bit landscape? XXXX always could there. be love Is to XXXX? one

Paul Taubman

and I'll it over Helen. then start me turn to What -- let

So statistics bit. a just some maybe to help

From So, year-in year-out. we Partner mentioned count in XX% Strategic headcount this year. our expect Strategic as grew we Advisory remarks, and Advisory

If X, Strategic you adds partners will, additions, experience, Advisory been if a you look at or about they've year. our net the X net

to added much have were that of of we between to recruiting this how interesting that a four and February. having, the helped and the lot walk X. to we our place we would the and And we've the engage partners special dialogues of It's this appreciate December get been did has just as with with year Strategic that and return as year, difficult our not COVID far office. will add think significant you the not picked up more folks. will for starting It I in halls cannot efforts. when Advisory office, a is been recruiting back note part a how months the number is

indicative is the things. what the from works see a partner will perspective year we more for growth we way XXXX. And of I So, of ended in lots think be much Zoom the recruiting

everybody not firm, If the to quite way there our as their to in people onboardings. to more questions, specifics. other office, give uptick if best-in-class office. you the And make are are is best to we've we recruiting who back you're partner that big surprisingly, can get at successful have individuals Helen commitment But return seen incumbent a in the

Helen Meates

through be advisory. all that's partners, XX report partners of since we partners reflected so And as concern, then, said, our have some Paul hide some in a we've and XX will which numbers. includes partners that headcount Just of promotion gone XX-XX, as we Michael. one, added the and updated process, when correct also

Michael Brown

and Helen Okay. you Great thank Paul.

Paul Taubman

Great.

Operator

with you, Piper Harte, Sandler. have question another Thank you Jeff from

Jeff Harte

outlook A with market sure versus impact awfully that down, headwinds? more capital, an Perspective kind I big mean, but the I'm long-term of a you longer-term Park been get versus secular provide slow investor keeps how couple talk left going higher and maybe morning. for you what's do rising me. about of bit maybe Can Good Thinking Hill. volatile, the all not any on has rates interest near-term near-term for which there? alts the demand potential things competition about for fund-raising I Do has.

Paul Taubman

headwind, The that going you a are LPs and market, tailwind back in asset right? a the to the marketplace, to given to coming over-allocated With PE, performance, a of lot have have is spectacular certainly you're everybody class. crowded

the be to out back coming everybody lot of will One create the environment to got asks challenges of fundraising so you've there's the there supply. a and

other that whether continuation whether does existing fund working more dovetail LP nicely of is LPs a through to need create think of liquidity with Now or or to I lot SPBs liquidity portfolios through it's causes and it's that a where GPs to interest create technologies. or readjust their sales

the you to think attract to fundraisers. much be continuing successful has to as I and this to this nimbler of more evolve class ensure you successful market it's more a So, because is that manage been such to asset have how you all and continuing capital. But need

space. So, to more going to highly I side, secondary going most to there And on it the time, opportunity see order to could so with everyone -- more and to in be additional primary be on competitive need long a And to create LPs. place side. to I the you're the attention everyone to market, suspect the a with that going for everyone, that but attract need continuing creative being be to continue not that get returning to it's we're the of capital

Jeff Harte

meaningful increase to dividend can the I buybacks anything that? an Okay. off dividend do in think into I And anything regular will know your us? increase. is the May on I flows, the could turn fixed confidence As dividend, kind specialty cash on you should of as read it that add of in increase it the that far big signal we dividend increase, sustainability

Paul Taubman

I plus; don't different we there it know a been and different We're firm rock-solid that that size, touched do six $X.XX just what we haven't growth wouldn't a scale, and creating that I our introduced dividend but we note certainly with at in I would dividend. thought today with weren't it etc. firm quarter, signals, It's dramatically we a years a $X.XX dividend. if

do very, we're but the look rock-solid not that is that dividend would context of dividend. a it think years. in I at having So, Otherwise, to very touched you have it that for gone not to level, six-plus comfortable we need

Jeff Harte

you. Thank point. Good

Operator

JMP a We'll you. take from now Devin Securities. follow-up with Thank Ryan

Devin Ryan

Yes. Thanks here. follow-up for the

touch did broadly, you than want more yourself just cash as today, Just about return amount a on the you're and excess just dividend. more capital appreciate you but to But position of fair a still lot creating the capital dividend excess on, dovetail pay bonuses. the that think to and I and

float on you're the and here these to the much in stock you how So, the I'm buy-back and at and about maybe stock curious how you balancing guys are the stock prices. and thinking liquidity price lean versus want

Paul Taubman

appreciate opposed and stock. to of talk I me Well our majority in always directed dividends. appreciate opportunity for you thank vast we to flow have free that. for prospects, cash the yet have believers undervalued giving another we buybacks about our big Look, to our I as been

in we left over, think much you those Is as Is additional don't a we of October back quite it, reflected the when I back that. have there much that's back have just there's tweak invest X number And then capital, if that cheap the balance at the a to dividend, business. comfortable a in going stock to generating and we And money buy we moving about X dollar go Priority that's of priority none is in think think in and to have ourselves we're keep either. even change buy but share, can. we're to change on as a XXXX, the the our to to with to dividend evolve much all to dollar and to introduced share. of basis, a right that priorities, you it not dividend I and not if going-forward dividend how

going back ways continue buy we're stock to to find continue going to dislocations. we're So, and these capitalize on to to

Devin Ryan

it. Got

Thanks, Okay. Paul.

Paul Taubman

Absolutely.

Operator

remarks. question. closing That any was you. like turn to I Thank to conference would additional Mr. Taubman over for final today's the back

Paul Taubman

and again to and when our to good first interest your meeting you Just Thank want report thank forward we a look for support. results. we thank you morning have your joining this day. us for and everyone quarter And

Operator

Thank And do you. conference. participation. does all that We for you thank conclude today's your

disconnect. now may You

PJT Partners (PJT) 1 Feb 222021 Q4 Earnings call transcript