Earnings call transcript Q4 2022

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Operator

Please standby. Good day. And welcome to the PJT Partners Full Year and Fourth Quarter 2022 Earnings 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. ahead. go Please

Sharon Pearson

joining welcome Meates, fourth And Sharon PJT full Executive Partners Partners Head our Paul Good and Chief Chairman XXXX to Financial earnings and Chief and PJT at quarter Investor and am today conference year is of Taubman, Helen morning. Officer; Relations the me our call. Pearson, I Officer.

number over course of outcomes those indicated to from point may during the in of Before statements conference to want make statements. are I are cause materially out various uncertainties, forward-looking I factors a turn These statements. forward-looking risks actual these to Paul, that could differ the and we this call important call, subject to that there and

the Partners’ our to in update section We believe statements. assumes Risk I pjtpartners.com. the that Factors company XXXX available duty on XX-K, no these PJT which website is at you that want And to in contained remind factors forward-looking Form described any are

make this today non-GAAP metrics financial the you detailed on release contained these on presentation within meaningful financial measures, disclosures the website. company’s their available issued performance. the The GAAP evaluating to are believe also we should and reconciliations, in we morning data we also The which non-GAAP refer our press contains

And with over call that, I will to Paul. turn the

Paul Taubman

adjusted year and and of million $X.XXX of you, This pre-tax of you full of all reported share. thank $XXX XXXX revenues Thank morning billion, Sharon, for $X.XX joining we us. income per adjusted EPS

we year levels. with revenues from total pleased ago with environment, how up We XXXX navigated market challenging are X%

global and activity relative down and our declines the our performance, well significantly As meaningfully less would Strategic grew on delivered than PJT performed Park record again markets M&A revenues Hill Advisory capital suggest. basis, business a Restructuring in

closer levels, existing but to Our of not return help build and relationships, ones. face-to-face client which strengthen new only pre-COVID XXXX engagement cadence meetings

expense higher. this spending drove our significant non-comp events on in and aggregate XX% While ramp travel

digits. low-single categories expenditures, non-comp grew Our these excluding

up these year, to was dilution and to up for was focused the talented headcount professionals firm. resulting Partner on share our X% remain continue pleased myriad we highly fully diluted from are we X% as ago We with in headcount total share attract navigated managing with we levels. year count challenges. year in how the All all, XXXX’s ending investments below of a talent,

takes Helen review detail. I After greater and business Helen? in through our you financial will results, outlook our performance

Helen Meates

Thank with Paul. revenues. Beginning Good morning. you,

increases For year the total offsetting in and full up revenues Park more $X.XXX declines PJT with X% were revenues. Advisory XXXX, Strategic billion, Hill than year-over-year, Restructuring in

XX% total Advisory. $XXX Strategic Significant by quarter, revenue down fourth Park PJT Restructuring more was growth were declines revenues year-over-year. million, year-over-year and and the Hill offset For revenue in than

criteria the decline that lower the With approximately quarter be in the in the raises the the Total quarter, corporate to fourth capital placement principal met $XX quarter. the $X forward million revenues last pulled less year. were of with than in compared revenues same period during driver million, in

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

compensation adjusted expense. First,

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

We compensation will our report when for communicate quarter results. first our expense for accrual XXXX we

and non-compensation year for Total for full Turning adjusted to $XX quarter. the expense expense. $XXX fourth adjusted was non-compensation XXXX the million million

XXXX non-comp was fourth and expense the a XX.X% adjusted XX.X% percentage our for quarter. for revenues, of year As the full

increase increased of was related the expense majority due travel year-over-year non-comp the in and XXXX, expense. For to

expense, in XXXX. travel and grew Our non-comp related X% excluding

consistent full fourth in for to XXXX, travel related and with higher our XXXX. XXXX, rate rate year costs. quarter reflecting travel the levels ahead, and more expense we more expect increase increased travel, normalized our of Looking in headcount With run run

single mid-to-high in our grow we and expansion fees related in travel primarily space. modest digits office higher year-over-year, by expect the of driven our non-comp to from expense in expense and the Away professional aggregate a

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

pre-tax full in XX.X% the year margin and quarter. fourth was XX.X% adjusted Our for the

we The and our taxes, with our for results converted been taxed units was corporate full income provision as tax a partnership prior the to have rate. years, presented have shares as that at

In refine full for the from first up Our our that the effective line of applied year in first the slightly would tax quarter. end rate nine our at the to estimated be expect effective view we with the and of tax we for year. rate the will XX%, XXXX, XX.X% we months rate was XXXX

the was compared with adjusted quarter, in earnings $X.XX $X.XX Our $X.XX fourth with compared XXXX converted full $X.XX XXXX. for the per in in year, and share

the count down million year-over-year, for we X.X equivalent share count ended our XX.X XXXX, market The of share was X% weighted primarily repurchases. through year the average open shares the approximately during repurchased and shares, million year,

the ended investments in million cash, net short-term no with cash $XXX in year and equivalents On we million capital working and debt and the sheet, outstanding. $XXX we have balance funded

$X.XX dividend A a And of record shareholders common will dividend has to paid of as XXXX, on Board finally, Xth. the per The share. XX, be March Class of approved March

to I will now turn back Paul.

Paul Taubman

Thank Hill. Helen. with Beginning PJT you, Park

Sharply frenetic turn for which valuations a made environment fundraising on of their capital became in quantum As which available was the difficult coupled denominator new market investments called many reduced progressed, alternative pace significantly XXXX overextended the public at left in challenging. with for for commitments. capital effect, the environment. lower year the investors This allocations, alternatives fundraising more

delivered another Even with year. modestly year-over-year revenues this grew Park backdrop, PJT as Hill record

investment the best-in-class managers represent allocators capital with to demand with distribution strategies. capabilities relationships close in quality highest enabled us our and Our

in Turning and greater In slowing the equity geopolitical markets, growth adversely and to activity. of uncertainty, XXXX, impacted economic sharp Advisory. Strategic a downturn global strategic all pace

tightening rate significantly largest across the than annual in rolling consecutive seven sharpest XXX and financial markets. The points impacting more hikes, XX in rate basis and Fed increases represented years. valuations

and half as year, of the and political the weighed further the continued XX% roughly down year volumes M&A the nearly for the of for impact hikes were first and these on of second uncertainties markets. half global XX% economic rate Announced

these on immune full market industry-wide we down dynamics, year basis, a not to While we Advisory modestly, volumes. Strategic in revenues decline well performed dramatic only relative with the notwithstanding were

Our markets shareholder topics. client offset strength to revenues, in our resulted in continued engagement momentum advisory, these This activism strong the as considerable on increased in IR drop-off practice particularly shareholder fourth dislocated shareholder engagement corporate placement evidence strategic and quarter. the

product including year. Paris year-over-year. XX% partner Strategic We Strategic capabilities and talent invest, across count continue grew this headcount grew a opening industries, Advisory past geographies, office XX% the to of and adding Advisory

highly tailwinds management activity. sharply fundamentals A capital and dampened liability M&A more companies. combination increasing became operating number higher challenging for Restructuring financing costs, In Restructuring, of in an XXXX, the dislocated headwinds that and leveraged of pressured activity markets

We management as Overall, increased our work we Restructuring and experienced ranked XXXX runway. and mandates, revenues debts liability in an restructure create and one companies -- U.S. rate in to in additional Restructurings. announced number run uptick liquidity Global

to As smaller with shaping is for challenging another firm many these we our fundraising to to fundraises look to year, be highly in XXXX remain as selective remains to investors environment PJT we navigate alternatives positioned longer up while close. ahead, remain expect uncertain well choppy Park and In the take be size expected Hill, times.

around revenues closings. the $XX $XX expected Hill’s be down even are million, of million XXXX Park results, record given be revenues well forecast to timing though XXXX to PJT XXXX’s could QX

environment is favorable the not making. particularly In improving M&A, while deal still for

of announcements reopening M&A While valuations M&A shoots in first the a global IPO level for activity, XXXX. promising recent in green the snapback the are recent may low equity continue of market, and the months well part of significant in for some harbingers

In contrast, Restructuring we levels activity our time. the to of extended remain elevated expect for period

For quarter. in headwinds than face XXXX in XXXX, offset will be Strategic tailwinds Restructuring. Advisory we in our in Restructuring revenues the expect significant second by in we growth Any beginning more

Advisory the investments Looking our business long-term remain our in confident we from client beyond market expand and for which XXXX, we we our the outlook intermediate and as made, increase significant have benefit share. reach highly Strategic

remain confident growth prospects. in As our before, we

take will And with questions. we your that, now

Operator

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

Devin Ryan

taking for Good morning, questions. the everyone. Thanks

Paul Taubman

Devin. Good Absolutely. morning,

Devin Ryan

to just off where on outlook. I you Paul on guess I start want left the

an Is are growth order of you the of yet, it piecing out magnitude like to maybe around parse expectation era together, now pandemic sounds some building to So have XXXX. way bit there’s acceleration? back seeing are revenue still any we in level little right maybe of all Restructuring there stress in a it direction. been and like It what that doesn’t but feel in for

there? context more what to around seeing are you wanted get a just So little

Paul Taubman

Sure. Well, relates it to in we reality the have abnormal living times been distress. as is that,

not XXXX we the seeing aberrationally of level So extreme levels. anything was and distress are remotely like XXXX in

rates manage normal, interest normal highly to their think equally think which I were given stack. is the more near The where way, aberrational and even And zero and we appetite, financing the debt flip XXXX leveraged at, that a risk other abilities are two side frame I on I most look XXXX there things is are secure that. to and to companies headed for and

strip of the X.X% the if what out average peaks rate, meaningfully Even likes. extreme global first rates X%, years below which you is. and the default The the rate were COVID crisis is last two and financial is the in default long-term

So momentum normal creates simply business. getting significant a Restructuring more the in back to environment

than shape potentially to are five were they or debt the years important some And is here’s quantum maturities, today liabilities second a the moving more point, in decade. that job then of in The than for the sitting very outstanding that are that had greater and way, managed their most have form is runway have with ago. the meaningfully in less while they out we companies companies good here most done today be reality a

And mature number debt if likely look XXXX, I haven’t at so that just levels is XXXX. is that to at next by the how we mean, much you in seen few years, since that,

opportunity more for So a to in management activity. just operating Restructuring liability think more and an there be there’s I for significantly environment normal

debt for much And opportunity then, issued to how covenants, companies. liabilities given managing in finally, the creative relatively with was be just light

there freedom of there now were than historically. I are degrees think more

a So, gloom. of as time doom of a be and having runway result, without lot we see for period a to long

Devin Ryan

in Thanks, Terrific. than year maybe this like conviction And heading outlook environment. just a I the to have follow-up Paul. just more normal into just in it’s love visibility of current to Advisory, Strategic Okay. outlook. you harder the just that the like terms maybe you have feels that on in It feel discuss

of have sustainable, it’s say in especially it sounds conditions but But at uncertainty. year. this months, last framing I or appreciate trying have that’s relatively about And so of to quarter into kind here, the so to first think all two been improved early same with maybe feed light a recent macro just to too the bit the it’s like the time, and over way few months announcements the going

to through as I’d think maybe better comments could make and maybe where maybe and So well? just kind turn Strategic love get what year of things it Advisory out the south this could

Paul Taubman

to how as probably will there need you and been return that And a to of a view the less present certain This getting the year five necessary themselves things and in is year we is Yeah. visibility heals, the historically are I sufficient transpired as where what shake higher has conditions has think of of level part the making. I on case. a but first marketplace not out is, deal certainly weeks there. for

it’s matter news and gives when starting start that them into we fall place the see us check that is those are a to And good that of you a therefore, if, to conditions just but seeing that. year during reasonable not and are confidence of degree off simply we the

just try crystal just from now, it much and from months transactions week now, month lift of out is of from a to Advisory three when close then ultimately time when cloudy given how XXXX, relates you hits in ball Strategic it it’s off, get this figure But the year. as and to periods extended a you that and do now, for a

client revenue But that the bit, opportunities, bring just step opportunity clearly together. if see firm we have, can little the the entire back just I engagement I the to a given much more

organization advanced that the all years more than right We or three were years time, two are far at ago, through. and we today a work will

serve is we trade, Where we net that be I get lean to have in near-term, can I the then bit as near-term. the further I which If beneficiaries this do a headwinds, Advisory where I because about have elevate clarity next. and I it on as those think clarity Restructuring may confident the pair greater Strategic quite business little out, a uncertainty, in of am take will in

Devin Ryan

Got it. Perfect.

the Just hop and clarify I to Paul, queue. there, will back then in

we momentum again, before of way announcement. well? engagement even the we of are kind seeing some of and momentum the we see kind don’t of last you a the about Like kind lot and the the time to that’s scenes Thank how talk quantification the that qualification or couple with that just of scenes you new client any when clients behind of get progressed around deal either So maybe that type because you. wins but kind of the announcements, don’t that’s see over and see as behind years, mandates

Paul Taubman

will I Sure. a I few just you give -- highlights. will

One of our which industry our we out to continue build and continue build presence is, geographic out presence. to we

across what all a an where we success office very Paris enough in we been a and in that point Europe. I we So had have opened have that we are successes have critical of now considerable think and and follows at France mass

as to we who help It have a brand and more that fact on that and the and the leverage wasn’t establish available business presence, differentiated few continues its culture, ago. a we continues industry more for a European and out. taking years colleagues its cross-border as really we more have to are way we transatlantic Our build doing can

defense which as where opportunities that we the we is, is Advisory in well into activist we opportunities the are from shareholder how our and and wrapped way as in The strategic Camberview the integrated capabilities second and that commercial engagement, in, like, the and and the boardrooms the are present for firm. have Strategic IR,

to ability Restructuring traditional as be holistic for markets ripe relates with that with the we but much the present continued greatly build to then capital the to capabilities. are more third to And initiatives, more deal Restructuring lending is, it working direct business, closely our benefit be advisory as from not out just yet have companies to

into The shifts more an their cadence handful examples thing macro is reengagement of gear far cannot which becomes are sort are then that I very the elevated quickly some where only what’s and client story, of environment these clients, and into translate quickly does of mandates a their just revenues. micro touching the potentials. control these of it is are think those more we a by how client, much and then of how I clients revenue just

we highly for present continually But it’s businesses, we are this comfortable point and group we diverse have of all and being very fact at we are where but this with built the integrated that opportunities us. which love more

where we guess And coverage integrating have into one and last another and these relationships. that the more better better present thing address sponsor gotten increasingly commercialize Park at of is, I I’d are relationships able opportunity some Hill sponsor our we broader becomes to

Devin Ryan

leave there. will Thank much. I very Great. you it

Operator

Goldman our will from Please next go Sachs. James We Yaro with take question ahead.

James Yaro

morning, Good and Helen. Paul

Paul Taubman

morning. Good

James Yaro

and expectations expectations should The XXXX? to wanted the your with strategics, on just XXXX start what differences how with are sponsors for between dialogues in M&A a of bit backdrop. how little and and your I M&A more evolve mix changed the the or have

Paul Taubman

was grow just all the financial dialogues. the -- times we don’t and be M&A the I sky last years. that always was at sure where over just sponsors have look, Well, not that am would few been and extrapolation to right all taught the notion things I trees from I that

at and traditional I they of broad well no buyouts as the the that to continue investments, they reach to ecosystem. become strategies, increasingly they think accumulate broader as part assets, look are important going there’s sponsors of into minority as and doubt move as they continue as an to venture financial like,

historic where lot alternatives and a incredibly comfortable and very sponsors rates all mean up. becomes But that capital the there’s spike we that LPs plentiful, about doubt into risk-on time where lows I dollars was in are meaningful were where think pushing it world more that saw no a doesn’t at all that a all you

that in of now from seeing where becomes the are opportunity more advantage that’s I a the deployment, think what reasons, take deployment trend. a capital mean fact capital as which the more of a sponsors sponsors for the little few we is coming more regression just environment slowed one bit for a and is, to of slowed difficult, to it are corporates this is appropriately conservative macro that’s fundraising has an

to more micro but is when harder makes to And committed it’s be everywhere level, financing more just then the available, far financing difficult at costly, dialogues. strategic it or committed secure the where it in

It’s tilted pickup more increasing suspect think I the sponsor-led. And boardrooms than leveled. that in at activity you to the least in or high least that their there’s to corporate level will a way and not may recognition be I it’s see in have tilted with while at the in corporate-led a that bit field playing near-term strategics,

all to be this into the back incredibly and has going of ultimately, am sure but will dominant not gets the important it’s sponsors part equilibrium the I an be of part But, and ecosystem, been ecosystem.

James Yaro

Paul. I just you very investing on obviously other one in on focused one, That’s incredibly new helpful, which want talent. are touch is to

evolved you you maybe backdrop could and of just the bring are the touch talent, sort XXXX to ratio top versus at earlier aspirations for So in trajectory whether whether year? and opportunities just impact coming the could all on has are better how then your in for what the if year, that comp hiring hiring seeing

Paul Taubman

Yeah.

trying investment on platform and not crisis find a reasons. and everyone is were the have In it XXXX global issues that highest have an XXXX hard and been are is next XXXX, for years to we like, and necessarily health bigger years virtual the a list. recruit to but got difficult locked banker to consistent the very world it’s there is the So as recruiting down different you be when

of us to return been a are we is and there. seen a said our very clip to to cadence like, you way that that’s ramped have there. engagement continue and incredibly helpful And to recruit for at from more hiring the the normal aggressive has that have face-to-face consistently I And best

The and everyone a the to in down with XXXX their such activity result, bit. for clients was said at a second issue and hard we shift, so busy large it make calm world world, we with as and a to was that individuals needed to little in strategic lead also

face-to-face. we XXXX can where velocity number lower are I opportunities less attractive a XXXX, where for talent banks and a in larger environment, engage and best their of think in are creating a where we

talent and seeing are That’s the attract are in of our before of us the perfect we quality rates that it the candidates incomings higher. to recipe number for are in seeing we and and us appearing are that conversion

think this better is environment to of I we So of recruiting that. us much take are all a for advantage going and

Now in you through actual ratio into that what’s get profile the of until year, revenue as as firm the the it’s far the to the as XXXX. pace for hard like, as comp understand the onboarding, see how flows very and further what’s well

James Yaro

Okay. Thank the… for you

Paul Taubman

The you. for this like headline The is is -- environment. headline a I love us. perfect This thank is, environment recruiting

James Yaro

Okay. you Great. so Thank much.

Paul Taubman

Thank you.

Operator

We Please Research. from Steven our Wolfe will Chubak go question with next take ahead.

Brendan O'Brien

filling to want is just follow Good up… Brendan This in morning. I for Steven. O'Brien

Paul Taubman

morning. Good

Brendan O'Brien

morning. Good

to wanted in on for I grow your follow revenues encouraging. expectations your up environment, the Just Based comments XXXX the current is comp on ratio. on to

year we ratio comp your despite your line on next already is However, to X%. to the confidence your seen ability pressures hold you in growth given the speak revenue could this up hoping headcount year? on and was have I some comp

Paul Taubman

are of the long-term, and going a we resist Look, meaningful build-out that investments, bit but turbulence. will be leverage, the for to right we into we that to further as making short-term demonstrate that the not get if able further thing have are which little we compensation there’s thought always

years, birth know give of the you of year of two wider if to kind three So travel. me I direction a

have it in you I If given and from stay it up flat? so information deterred that. does Does me need to [Audio bit? be down? do Does come to ask There’s it much not little Gap] just bump year, want any a we

on some we to that to little an just And will additions. talent, we the add be don’t said see a always going therefore, lean have years, have we target, other in in in abundance recruiting of years, we bit light we hit We a opportunity, don’t more. are if and

I land. in that’s exactly early going think all too it’s year where to this to know

I And and out. should than play think differentiated be said, have navigate just us will a we to as it we most, turbulent an that I better that of these and us, platform sort times advantage therefore, enables for

and show of incredible we back I and one the think creates appreciates believe longer one noise to progress to most if aberrational it forth. But the everyone going today, in reason are here for will have thing a are all be regard value, we we be term. going to But creating always able owners do have even the bit over the big that and thing or creates other, way to is continue shareholder firm I sitting value we XXXX on no to hopefully, dimensions. this

Brendan O'Brien

color. prospects had That’s peers remarks, for my far. winning to mandates Restructuring have that. you your that so our than Thanks great success your And noted and guess then follow-up, it these in of like for seems I some improve greater have you in continued

as an are feel due Just level environment more far do get [ph] so a you driving side better that outstanding? and are coming where or on to relative to you past to versus like covenant positioned for mandates higher what shrink loans of the year peers this debtor you is feel the in wanted sense

Paul Taubman

cadence a mandates that firms, a a Look, environment mandates we elsewhere. very there’s question. that competitive highly That’s of and great always and you and go it’s formidable compete win against

into is a up So right. not always everything the straight line

footprint verticals, advisory present that, if further our opportunities up out. if have year that to away down in means we have and others and If competing heads boils less we two. than sales the each melt that constraints competitive colleagues or Restructuring was industry front-end the a it said is those had fewer built to to Having it really force we in are it against able impediments smaller

competitive more leverage domain and out that geographies, presence, So able relationships, us industry have to have that more and we more are aligned with expertise, in more have better we the every gets corporate therefore, that. set, we year are build

second are continue we is management as up and sponsors for the picking as liability out then sponsor capabilities, opportunities our And well. we to more more build

just it’s becomes of bigger, more And the and franchise. of as Advisory all Strategic the more methodical greater formidable, of the So it additive a to firm. present, gets the part build-out the parcel business Restructuring

I think travel always trend as seeing, And elsewhere, the far that’s you the any too as to in in quarter, are us mandates macro I get not caught up given what try to but or there’s short-term. noise that, very because

You have term, have over to our the longer pleased an look a performance but relative there’s with both doubt absolute been basis. we got no on and

Brendan O'Brien

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

Paul Taubman

Absolutely. Thank you.

Operator

our Seaport Mitchell will We ahead. go take Jim from question Please next Global. with

Jim Mitchell

on pre-announcement sort thoughts. and have get us talked level Paul, Strategic of in the a what are in engagements Strategic aspect engagement levels just a Advisory of sort the you your Strategic talked trigger, and seeing is have haven’t of about just still -- given thing not Can Advisory the past of being remaining peers not able seeing advisory pulled seeing of give about that that really talked sense you backlog, of you financing side to high type you Advisory, pull about up? are markets. number side, of triggers the same engagement One kind you the

Paul Taubman

Yeah. great way just because It’s question. the has this complicated a unfolded. It’s world

So I would say following. the

levels confidence and in side, was not for and hot it of record not the the investor And the as was engagement strategic we levels in boardrooms most red on was engagement respects, some saw interest waver. started cooled -- and engagement last the you did at our levels year. corporate year, crisis market of If

some just of got them, because it’s I still they the were pursuing while they they viewed And not near-term. some be these interest had year, of actionable. think the to actionable end were things, the suspended transactions be not every think in working to on to of deemed of these I clients, in sort

it count, receded a active mandate the you were sort that bit. of if So will,

hold of now five first weeks were on the recognition year, in there’s is coming I that think, happened the are back. maybe the things clear What’s put a that pile

so are to sharply positive. that, started because to volatile negative we from just the lot to moved seeing the so So Thanksgiving the and it year sentiment fluid a it’s of the of inflect end and been and

XXXX about downturn six of want weeks in talked haven’t or to the five because of don’t it in I last make of the too the much much, first XXXX. as I the pickup really either weeks

I think muddied. it’s still

is, you step all the can back, really activity, and as equity single analysis, and needs have today as biggest you about drives if correlation when reality correlations, run the But can valuations. M&A all way you is transformation corporate been for they what great think transition are ever you do the the the

more going come that And or pile. hot the is given see we the sign suspect start if pile hold of you back I to lot some very active levels start can to the red healthy are that a year to the a and maintain of these into for bit, a

Jim Mitchell

million, in had comment pull And few heard make that like helpful. you for correct? sure closed I large That’s to maybe correctly, a is your $X I was it early Okay. but seemed think guys forward January, Helen, just transactions

Helen Meates

Yeah. That correct. is That’s correct.

Jim Mitchell

commented Restructuring Paul, of a Okay. you have the second quarter -- event. do And you on any sort business

how You talked better. Advisory being Hill the Strategic about is how getting and and off we visibility Park the year the beginning any case… starting into on the week But of think do about

Paul Taubman

further. to talk sort I started last quarter-to-quarter really honestly, inflected It’s other going to trying confidence, it’s last than it’s how but -- year about the be tell. mean have which then I down, hard state respectively one hard to the particularly is, just think and year, the -- obvious, where of least down about that’s it’s you if

of probably just I expect across would that, and been. unsettled don’t which be. how is gut good for same than is precision, My I have that mirror that business the our will this world to a is M&A of but because think more it’s sort I as image the soft look building the read to is

turn either But revenue it. you it’s when recovery, to matches pick more in that when see you regular trying challenging. cadence trying bit phase, But or are a activity, turn are to had recovery were of And it you little down how in of the is are a to to sort when recognition up, I stasis, exact seeing a easy all when a say, of we the… see like at to

Jim Mitchell

Got it.

Paul Taubman

say be, to should Las ask It the you bet, is second and Vegas put stronger lot half. first if I’d go half to than a a me

Jim Mitchell

Right. Right.

appreciate Okay. Thanks. help. the I

Paul Taubman

Okay.

Operator

KBW. We Matt with next will our Moon Please go ahead. take question from

Matt Moon

you Thank morning. Good for Hi. my taking questions.

Paul Taubman

Absolutely.

Helen Meates

Hi.

Matt Moon

Very curious fourth So just one suggest the think, for just GP quarter of say record But am was strong level for secondaries there. you the overall performance, environment impacts. clear a on activity. did given would I business, [ph] Park I Hill on a year place on it Park which the Hill. XXXX the

this side with $XX placement to your million $XX placement the XXXX is kind kind mind, on and in I didn’t of the just then curious to $XX comment that come to in down the a hear I this of other on on kind at start we impact revenues on of to of million the So And first specific environment revenues, just as or am quarter? in kind on GPs side secondarily the be million reset? of the on New Year front LPs businesses,

Helen Meates

highlight of placements were first did get just down corporate We QX. to So, back significantly all, in that I’d placement. fact the

Pack attribute can to Hill. decline that So you

secondary both it Hill primary up when say up and in Park in was the business. So year-over-year, was we

So thing. the that be would first

for see coming just of QX, being a see we given last was the timing what in at down Park looking then, year-over-year, we Park year significantly Hill, Hill. QX record it And secondly,

be year-over-year. million would down So $XX to $XX million that

Paul Taubman

year. rest But of quarter, the recovery with first just the for for the

Matt Moon

then And a shareholder as Understood. also one strong year in to level. activism from that it your XXXX Understood. kind XXXX of cited relates of competitors persisted the

So XXXX just respect are we we and environment business curious that Camberview, kind kind what as of for you consider on enter kind you seeing in the what year saw the how of with of as to should well?

Paul Taubman

Yeah.

companies on my a was dislocated to company. shareholder prices a turbulent get to to IR activist how I investors out figure well mentioning play think look position the for and distraction I try taking in. help an to as who right have for may right? investors engagement, better for creating You or strategic with remarks, story They their be position in may with the environments share vulnerable

So of good, probably you with of are creates than engagement. dealing less dislocated the environment equity mind shareholder When times for top when more that a are it’s all productive market.

So I Restructuring business from environment. our challenging as think a just benefits more

read I across our shareholder to initiatives. a think also it has engagement

Matt Moon

And quarter. are last the Great. buybacks in me, for relatively Okay. one light then

early a general near-term? of advisory there, to conservatism this some as relates is outlook I over given just Just of buyback, of that outlook the uncertainty M&A year? think So wanted the kind and the it sense course there’s of parts the guess, about to it the fair think of to that

Paul Taubman

rather increased reduced that to late was we if the shares, year Yeah. of to beginning our are I until we just said at what year, view the we early and wait we the last deliberately the the exactly balance We our -- retire in were it the than probably We rather we would load we buybacks year just year the sheet that clear share were dilution. strength going going and manage that’s our share opposite. do going to the count very front-end in did. for for we were and year

more going first we the our the that. as to intend the year and to And forward-leaning of of XXXX. has committed will simple while bias we as are cadence in than I all what we stock, We it, in don’t if to are second a be been, back buying do do do think in half very else the half have equal it going probably to year,

Matt Moon

you, Thank clear. guys. Very

Paul Taubman

you. Thank Okay.

Operator

final our was question. That

turn Taubman We for the Paul his call to closing remarks. back will now

Paul Taubman

this want the firm I we for much with forward look very thank and report everyone you the morning’s us to results joining call on again, once Well, dialogue speaking in our and in to you. the first spring. interest and quarter when we appreciate we Thank

PJT Partners (PJT) 7 Feb 232022 Q4 Earnings call transcript