FOCS - Earnings call transcript Q2 2021 | Focus Financial Partners Inc

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Operator

Good morning. I would like to welcome everyone to Focus Financial Partners 2021 Second Quarter Earnings Call.

Joining today's call are Rudy Adolf, Founder and CEO; Jim Shanahan, Chief Financial Officer; Rusty McGranahan, General Counsel; and Tina Madon, Head of Investor Relations and Corporate Communications. [Operator Instructions] Please note this conference is being recorded. Mr. ahead. go please McGranahan,

Rusty McGranahan

everyone. morning, Good

fact Focus currently we begin, course assumes number statements. SEC, risks that without differ including, information and statements. of could the that update to duty from uncertainties the undertake to Rudy? materially that, no remind of these by may these has not forward-looking on our lists factors Focus over course, With may, let statements, these limitation, from this made statements. made Adolf. Focus uncertainties call, me Partners the any results attention of forward-looking differ will statements your and does that a to We filings These the you the Focus' we turn results statements. to from of I it during which call Founder differ Focus to Before to that and surrounding may of And based with Financial are cause assumptions the results and pandemic. its available Rudy involve such COVID-XX materially some current CEO, and finally, make cause

Rudy Adolf

and joining thanks morning, today. us Thanks, Good Rusty. everyone, for

over $X.XX million, are of were per and past any revenues strong adjustments performance of second income, existing Our results year. of quarter the quarter measure, excited and We net per second $XXX.X growth portfolio well the tax $X.XX. by of share excluding as financial strength share our we as about generated partner our in adjusted tax adjustments the continued

year-over-year growth XX capital $XXX grew cash an And due last flow available exceptionally robust another end to growth. high the rate Our months revenues exceeded expectations our XX.X% reflecting of our to strong XX.X%. organic quarter of million, for allocation year-over-year of

X and In firms with closed we also story on partner to X our real total an footprint, brings including continues transactions transaction the we second our the closing. those pending X have date, the announced XX expand of another QX, partners, new mergers in transactions. transactions closed Canada the is This M&A acceleration have and was excellent year-to-date of quarter in XX, Connectus the momentum. to into QX Toronto. for of recently to year with of international behalf its our having Gavin signing most and of X X Connectus. However,

group to replicate, relationships. partner and continue extremely Our excellent while leader each firms, industry in capabilities our addition, management client flow. cash sources of complementary and wealth expertise be diversification difficult outstanding geographic reach, and important and revenues add it's to an we deep terms advisers clientele would new with to Each of adding

debt this, Our is on continues pipeline cash unfunded which, with on July firepower. record X, gives our anticipation of closed capital In additional on million term flows and to on combined we build. $X.X when in capacity, billion revolver at the cash levels and of us over $XXX we hand generate

to appreciation to tailwinds the multiples worth growth and industry wealth excess broader drive the growth and net as history. that continues. integrated dislocations advice transparency their changed The and the great irrespective among or come, COVID personalized, strong of the list. organic XX short-term Partner million continue of gains of mergers about fiduciary asset architecture. deploying continue to The the who rate. sophisticated we ultra-high transactions the are Over services which to worth the highly currently who recent into management client succession consumers in new provide momentum creating in partners. -- almost capital deployed demand annually consolidation years, and study, growth remaining approximately to Echelon delivered average with fiscal highest clients capital of as of for greater potential years the with X/X our in both attractive open partner flows industry such level on and years and these This with adviser model in change behalf and the having At same tax prior us, business and in and $XXX $XXX an per we for with haven't accelerate and between last net opportunity fee-based increasingly X anticipate generally pressures of consolidation being deal year, runway acquisition being firms an experiencing can value X/X top the the of many firms infinite is completed of an of million market and profiles. secular shift resonates year, about capital via This The high planning this time, at true will migration are U.S. According especially for a internationally. strong

resonate continually focused of industry. to a proposition firms highest-performing Having in this us many XX,XXX backdrop, as intellectual the of capital become distinction. investment years and competitive advisers aged over clients resources, assets, important in that XX there our will about advisers, my trillion the growing better clients enabling and from to strategic $X next scale wealth an for managing years. long-term solutions. and undervalued One businesses, Against and technology which change robust permanent like holistic is the faster hands statistics attract particularly is services and stronger with advantages favorite core strongly, The services XX older, are that as entrepreneurship, of client enable but consolidation, net access an for demand catalyst the partner in value serve firms value-added study scale another is managers need to grow their expertise our top

$XX annual partnership markets differentiating of in an revenues closed about in oversee They the our excellent COVID-related example annual XXXX X% recent million underlying leading Collectively, the CAGR $XX XXXX supplement, our identified diversified billion despite competitive portfolio on earnings. is important complement or to and Page advantage, planning for have we firms U.S. as wealth for assets, highly earnings and XX them large, especially important firms this. a of Pre-Focus, presence announced, partner of of another are million acquired Joining also we the several our add The firms of they succession. an firms to average revenue these generated partner in most while base strengthening over market and XXXX $XX.X headwinds. in expect

provide highlight me to of Let them X context. with you further

client independent based The is Badgley approximately Seattle, Phelps, in manager first in billion an $X.X with assets. wealth

client has XX differentiated the its by and RIAs its Over highly years, Badgley Phelps is of the of caliber Badgley Northwest, known team. the the longstanding history, the last services business long and multigenerational for Pacific one premier become well in and its is of well-established its Phelps continuity relationships. deep management

Southeast, is wealth only enviable a in net record financial and positions firms an based for our another footprint the third growth forward that service clients, venue rapidly management via the partnership investment our client net as $XXX in proposition billion of strengthens in firms Rollins growing which built record. in the The them ARS fiduciary St. wealth family process right important to service management business are of presence adding important our an million at also with high opportunity. characteristic and client It market. not globally. XX high ARS and assets. its Rollins $X worth M&A of to is client approximately to has based is planning, track core of further substantial and us, with element leader the firms our our into Rollins an it growth footprint, time and an expand X, validates a And we market. but Florida, Atlanta, track long worth join the tax expanding Wealth wealth partnership stood model. these assets. which with Petersburg, capitalize value-add office approximately Florida, a differentiating expands a August our planning primarily second our provides wealth structured market across integrated that as on client it services clients, and Financial, attractiveness investors partnership, sophisticated A manager Every Wealth in and like our ensuring its attractive firm Advisors, will is has of

IRR meet that levered key There We of approach are we our elements exceed are XX%. our also are consistently success. X extremely our disciplined minimum so to to of hurdle that

is first relationships. of network extensive our The

have We that built to have X,XXX that U.S. our time. often said over partners. firms that that relationships period those of another and and the the there have are alone potential X,XXX It repeating firms all a we about mergers them become in for know virtually long bears partner could

stability within process. used at by interest That acquisition diligence have The partnership well-honed and a is of core. and second structure we first due is structure entrepreneur our diligence a the process. acquisition, consistency creates normal Since consistent well-honed its always has the that our the complemented the due

We the process learnings more today. to and transactions from we have than contributed follow have completed XXX the all those

The third them array to our is value-added and offer their ability such a through our services to of firms partner to clients. broad

the and gives access leverage The all scale very expertise, difficult that offer. of our to would second none what for combined of it power Our partnership replicate can purchasing firms. we benefit our and be to insights we is us of partner unique

our the will We that also in most. our to grow have value-add the partners evolve services firms continually profitability areas help the

sponsors the discuss in large their summary, million secondary the the will the June. this investors we Jim, to of of KKR, growth our to In X.X approximately float that call become well Well, second share, offering Before X shares enable per at was our briefly PE $XX.XX improves many of of to one The the beyond in Focus. of to in holdings monetized PE at trajectory continues position the expectations accelerate in quarters. institutional additional as shareholders. their year. remainder a stock the liquidity our turning incremental beginning and our over I wanted secondary completed offering sale exiting

the are M&A excess traded well leadership what independent execution, wealth nimbleness. that discipline services We delivering is the management most position growth are widening publicly executing the record and by around sector supported Perhaps typical our takeaway within we consistently volumes outstanding firm, is world. in here for of financial and important on a

are you story. will We Day instrumental year. tell of helping turn A we event they in have substantial evolution on details that, in December us and as this our Investor look us to made second partner X with more With let sharing our Jim. progress our over the that firms growth our call at business, of number of me this to and forward Jim? of for join the

Jim Shanahan

and and everyone, we with thank significant the are our pleased us We to our morning, very of Good you delivering growth generated results, value today. strong business. QX joining momentum shareholders, for and

As Rudy this through will year half continue to record levels, into anticipate highlighted, our we of which at second M&A activity XXXX. and build is the

firms in benefit meaningfully as industry as regarded access highest We well services. value-add are the the who our attracting scale advantages and many permanent of to from our will capital growth

growth. Our performing portfolio existing delivered organic of and partner is well firms excellent

Now provide our highlights of let the QX me P&L.

up million, estimated $XXX.X our across growth were million top XX.X% the year-over-year estimate the as revenues range XX%. to to of was exceeding ahead and our revenue Our million of high $XXX partnership XX% of XX.X%, end of slightly organic $XXX end of the

EBITDA Our was $XXX.X XX.X% QX up adjusted million, year-over-year.

with XX.X% guidance. line Our in adjusted EBITDA margin was our

We that over leverage will continue expand scale-driven our we the our increase, to some variable further return believe be to expenses expect business. and in as in in-person uptick due office will operating business the there our activities employees margins time to but

tax XX.X% up $X.XX, our Our the was adjustments was net comparable share excluding adjusted higher year-over-year, for per period. $X.XX, and income, tax XX.X% adjustments per share

these Australian have adjusted momentum of Rollins QX, and additional to Management QX. during the has pending revenue $X that in contributed QX. million We and build our $X.X Financial partner on the annual adjusted in EBITDA mid-quarter million X we QX, firms In continued closed, estimate to on they these will estimate completed last will in on contribute transactions, for in basis. a we partner QX and And date, total revenues and merger Prairie market X an the a estimated adjusted and X we total firms, million $XX.X Australia in April million that and for closed transaction in approximately entered X on and year. $X.X contribute increased new EBITDA we Our $X firms, late of closings X. Connectus fourth for Capital of M&A quarter. which in have in EBITDA Based signed in revenue closed $XX since X estimated Connectus, million million we it

half X are firm total of We X this the also of mergers X, announced This the U.S. X mergers mergers LaFleur additional our to a X completed & pending QX, and closing. and in brings for mergers through us SCS that in partner have year. completed first August Godfrey. Financial closed we In

our QX million a relationships to cash the Now have percentage revenues, Management flow. higher due XX.X% turning and $XXX.X slightly firms. QX economic to partner with of our fees were or expenses we relative to

contingent these consideration, Stronger estimate the reflected organic the of reflected Our as earn-outs of conditions, increase noncash an Monte this drove revenues. noncash in our June Carlo in the equity our a of with $XX.X line revenues, of approximately expense estimated will X.X% compensation pursuant estimated be in effect fair fair market value value estimate expense of of of in fair simulations. QX XX. also including guidance the revenue and of the changes was QX increase value growth, we X.X% increase liabilities million to estimated in

available $XXX as flow the cash the In of we new period. mergers our year-over-year, well higher LTM X XX.X% XX receivable payments. reflecting tax as allocation during agreement XX capital addition approximately of as this $XXX,XXX partner million, firms June QX, and partnership was of for growth of Our paid

paid $XX of $XX $XX on of a structured of the approximately We million to we primarily guidance closed QX million, million also and acquisitions to earnouts aggregate firm half higher based cash of earn-outs for that QX in the timing cash the acquisition. than for in partner earn-out to date. second anticipate We pay $XX.X XXXX will our obligations million, due

period shield cash of billion our enhanced June will flow a as by $X.X XX. tax As reminder, gross future unamortized our in be

expect the continue also tax-efficient enhanced of our acquisition We structure to given highly and corporate tax increase any be tax this will shield grow will value by in rates.

of will estimate the that Now million. We range turning rate to QX be our We XX% revenue expectations. revenues growth organic to our $XXX QX XX%. QX estimate of $XXX million in to

also partner Our the We effect about additions. reflect our that firm new be QX XX%. our EBITDA QX will expectations adjusted of anticipate margin

our levels, current conditions XX% Day estimate our X. stay our about market update that will constant margin adjusted margin Assuming EBITDA long-term full be adjusted of at to December year XXXX at on we target We'll continue Investor EBITDA XX%.

on billion leverage X.X with balance of parameters. X.XXx leverage Now net $X.X ended sheet. outstanding a for comments low ratio few of of We to our approximately debt at QX ratio net end our the and X.X

QX close anticipate debt M&A allocation we capital X.X X.Xx, with rapidly range to we stay we of nature constant given the of continues business. the believe expect will for remain current as to the net is ratio available leverage We be capital at and appropriate ratio leverage our markets Assuming of X.X our in acquisitive reduce to the to acquisitions QX, increase flow levels X.XXx to highly net in that our most our needed in to activity. amount range range the committed fund cash of which our

X, million This with with XX.XX. subject in which The drawn at draw has a accelerated basis our maturity of points, add $X.X July on to X-month and This our mentioned, million expense tranche point and on in floor. XX an loan is M&A, million with incremental of a interest based basis closed LIBOR rate we consisted plus X-year $XXX will a OID approximately QX. LIBOR million estimated interest XXX delay on a closing Rudy on future. tranche As new term $XXX closed $XXX

summary, debt strong. we We trajectory to business and expect the quarters. next executed growth very deploy QX remains of over the few capital this additional in our In well

that forefront to at part each Our over Becoming network remains unique and and excellent teams an to entrepreneurial as led the are by Focus industry next at their service wealth other who difficult our or offer continues firms our long-term of able source for anywhere has helps create leaders, is offers scale exceptionally and which as firms highly be proposition, offer growth. acquisition advantages remains or permanent industry. partner of scale. current benefits partnership of shareholders. of organic attributes capital. a are No public capital looking without Together, value international clients their our superior private, to They array accelerate intellectual to who of and supported who the in investment prospective space, client managers company these are resources management them this The we this are XX grow would near result, resources to value attractive pipeline Focus' by can joining steps. in our the

Corporate Tina, out introduce questions turning Equity Research our let Charlie call with working Charlie for the joined any recently Q&A, feel Arestia, team at that, turn closely to Specialty IR to Before I addition team, over With you to reach in Tina me Operator? JPMorgan. Q&A. us wanted Charlie to Please and to the Madon. Finance the joined the to call have Communications Focus. from if about operator free who

Operator

Instructions] [Operator first from Oppenheimer is with question Our Lau Owen & Company.

Owen Lau

an acquisitions, multiple do pace your past players? So reactions over how you the other the was of few of you range paying you give given months? please update competitive were the competitive What could the dynamic? the on us from see And

Rudy Adolf

is yes, many of of frankly, in power we than We multiple the remain that name. so paid. just we Focus' clearly, M&A are a quite discipline of more aggressive Owen, industry, this proposition. join of the deals us much deals -- really want And in firms competitive And very certainly throughout our the The for are history about doing we being their of announcements kind we to transactions. they when disciplined. the more almost the the of speak look and first most Owen, diversity course, multiples but and have of providing from And this successful is recent on and the scale. are value doing, selling to quality the number and any kind our have Owen, upfront recent you than pressure of because, of we at And else just anybody Focus And advice. be deals years to wouldn't -- space. more from in seen protect track middle foremost, of just so But deal is absolutely. clients of our of to certainly terms both this that's history. one And continuity

fundamentally, culture. successful, the them in want transaction bit at again, want they back that these independent as again. the is important, the just block who made the equity they will stay sold But don't protect very They their private on protect just to to then little their because businesses to be on may want and are Second staff get pay a to entities. somebody And end, more. block they else. ultimately them

of of a So the of and Focus' this attracting keep is really kind U.S., some just power best in to role and industry but you as allows firms, increasingly on ultimately here global us our it's the that value scale. economics know, the in not protect this proposition on

Owen Lau

is, Got maybe going about you industry lots are up it. pay and now? conversation discussion Could of compensation for industry? What Do your hires? there competitors you That's new compensation of this are helpful. about this talk please the the seeing right My in compensation, trend pressure. are you anticipate follow-up very in expense to

Rudy Adolf

Yes.

uptick. ongoing we quite pertains as margin robust. so quite there be disclosed the formulaic. these is economics pressure different provided in reason of haven't model Yes, understand probably want Meaning I the Quite purely these the a a about industry keep is and broad compensation that frankly, negotiate new what we is more overall, our guidance this by that But broader it's basis. are and staff "compensation" expenses. will economics basically is in Jim right the mind it's is really frankly, fees to our But goes business number an really -- a management one phenomenon dynamics in absolutely that And beyond fully. transactions, Focus our when we number formulaic most it some on negotiated think is frankly, to and industry now. I

sustained be identical that to economic You our is structures. many, see will with fundamentally this model many QX -- for years guidance ultimately, come

Operator

Our with KBW. next Voigt is Kyle question from

Kyle Voigt

going can to get much be of deal ahead maybe around a deal Maybe -- thoughts or activity and a you a forward driven of trying slower should this to I'm to we an levels activity acceleration updated into little us we on is just is elevated being as pull sense a by look bit year? XXXX, get give there just trying that's sellers, so changes? expecting some out of of activity you next how potential tax of think

Rudy Adolf

Kyle. Thanks, Yes.

We potential incremental the -- have And will meaningful may XXXX significant there the and are all of bit little may a are countries. tax impact U.S. dynamics there yes, we course, be slowdown tax not some that there activity that in in concern beyond. changes these of X -- they a a Kyle, be way on different drive activity. are in But of cranking cylinders And beyond

So to continuing come. see for M&A we years the momentum

Now because reason the is of it's course, structural.

founding RIA trillion, of First managed operating joining are driven other very what. of the which we by, trillion market. you is Then household and no industry. U.S., be are going leaders change about we $X matter -- X $X dynamics this operating look in industry the frankly, when now, And in older the each the in, approaching foremost, $X we wealth. aging the generation Kyle, of they markets M&A of from is year will X trillion is are U.S. the And all next this year and the to generation then, are much just XX% quite to

opportunity unlimited highly basically of power to and proposition even we we the continue with we as to market $XXX comes believe in our of $XX in back we scale. And billion getting trillion ahead in trillion, -- aggregate, value assets opportunity, stronger it over little have sustainable are will a So client operating be in assets us. $XX a that an

short-term So tax no, I just have is no momentum driven. M&A worries that

Kyle Voigt

for the just my EBITDA XQ. then And margin guidance Great. a maybe is clarification on follow-up

for now quarter, guided and XX.X% to XX% for you last XQ guiding XQ. I think

clarify is the lot to it a from T&E to prepared this remarks, sounds just related of or back-to-office like expenses. So

acquisition if more that? a margins or normal any been a of simply working material wondering to of note else anything impact a impacting of Just from kind Or is result activity percentages ownership acquiring Has there that you're environment. really there's back this different getting to those businesses? to

Rudy Adolf

it same this I'll the a in large, our range percent to to other you remember, comment these? want change by factor. always Jim most overshadows source within of always important is over at acquired of second. But hand Yes, the on when and remains can percent as acquired margins, look the before. do of the of kind But you Jim, be a driver any that some changes. And

Jim Shanahan

first mean thing think I think I Yes. year-over-year. about is you the

at we're 'XX, half XX.X%. versus first So XX.X%

So QX on we that's transactions in reflective mid-XXs basis. percentage guidance closed new imply of nice margin the The a in are it's growth also They activity. partners, as terms year-over-year in QX, X the points M&A And the XX% EBITDA a mentioned, in numbers you of the for that and the partners on new a supplement. included margin.

point all we're we a gets on certainly all that But our Day And year our in-person XX%, activities later sit at pretty today, uptick reflects at we're this we're this reforecast this of And December, margins. that the the in So year-over-year guidance. longer-term working on. happy of type where with the basis. our to Investor think year results going said we year, cost, full activities about we M&A in baked an into model and travel sort that and and of

Operator

question with Securities. Our is from next Michael Young Truist

Michael Young

up have maybe to around how higher Jim, on just terms of versus shield? tax just of in wanted do domestic, through tax we would parts equation. sensitivity U.S. that trying of the tax any sort the analysis to the cetera. think And portion impact the a rate different see et Do follow in you If global

Jim Shanahan

Yes.

our well, tax-efficient think structure we manner, continue domestically that's or I a all, first of whether internationally. transactions in -- to

So that builds.

on And a future unamortized gross $X.X and it shield tax income a the to we that. billion, $X.X of to June as over provide from I savings, tax And billion. build. think million obviously, see slide XX% almost at of was using taxable can it quarter-to-quarter You subject continues was And XX, $XXX tax the rate.

go in So corporate up, the if then rate shield tax respects becomes more valuable the does there. many

Michael Young

firms. on business curious from Okay. terms the generation partner basis Rudy, actual anecdotally just sort of maybe on of is an you're Any new what M&A partner hearing strong. them? a activity And like maybe anything organic firms Obviously, in impacts the the very But that? economies question of from underlying just reopening from or

Rudy Adolf

Yes, absolutely.

In we meeting had our regional just Boston. partners in the fact, Northeast Michael, in up

doubles even worse that our regional meeting. the end excitement, at fundamental frankly, of Yes. industry other And expense of -- basis. a the In to never, exactly any growth into we that level QX last crisis, the you RIA important, Third And in ongoing are industry, experienced. RIA on was of And wirehouses quarter. quite the in of so space industry. And said where maybe than a showed the positivity, segment second normal happening of it the better what RIA year. traditional it's rates rate -- gets and more course, way assets almost the in second weathers of during partners the But at fiduciary year, of have quarter supplement last reflected year, wealth and I'm after rates the an what's experience. versus here, course, acceleration the of the brokers the rarely the in and the we success our disclosing of in other the visiting that XX% have part goes seen is we the we is, see last management the more say, of that this many partners ultimately, yes, growth -- level I of brings storm organic not of what momentum again, model firms banks. what I but this the growth segments partner this have currently the any then the crisis, level And course, it quarter

X last most in QX continues after years. is what predicted then time year, growth, history first X% is So XX% year now. effect. normalization any if our crisis, are brokers wirehouses, over we right X%. the And historic see in is experiencing they grow typically we in And you multiyear a after or is and other the and guide, It at analysis what -- the where and industry but it pronounced based on this at second exactly of basically averaging more the a

than anybody our about industry crisis So demonstrating in here. that it's But it really still particularly numbers else, and growth crisis, yes, after delivers are and we the you clients just in highly our more see differentiated. for

Michael Young

quick X to maybe And follow-up that.

historical analysis of system. this mean such this liquidity prior cycle. we've could do would than either normal seen sort a But I the or think be the of stronger into time, influx you imply think longer a I more cycles? an

Rudy Adolf

wish I Michael, -- that But is was a normal cycle. correct. you're Well, not I just smart. This this clearly,

experiencing helpful. overstretch pronounced we're to based be accelerate we be going how here. that We weathers more because being just of to ball way occur fundamentals which the speak. don't anything a the a I long it and as are make that how pumped our of all cycle monetary it thereafter again, could could I think kind all else, crisis it's the stimulus, industry this even hyper than economy, But core then And but on in is glass liquidity going pronounced. want that's But in my to better

Operator

question Our is Sachs. from Bailey Goldman Ryan next with

Ryan Bailey

a different Maybe a little in outlook I'll of about way. bit M&A ask a the question

like post-periods of it of a and sort momentum seen itself self-generating year we talked hit also feels of idiosyncratic. ago, level scale acceleration by So volatility activity, that about is in deal about like a but Focus how and hasn't

I activity versus macro you the Focus' idiosyncratic So wondering to two How then activity you is is do much And think of the secondly, it that expect on things. based deal much deal continue mentioned was pipeline because how had XXXX. into of momentum? Jim of

be that driver will momentum? So what of sustained the

Rudy Adolf

in strong. of just a yes. doing course, combination Yes, said just M&A asked overall very remarks is are when -- be And question, not very value of industry much my of around what forces. just It's of that we it's, ours And it's Owen momentum the course, well, It stronger. is to partially justify happens the and even correct, you're I course, proposition. of it was, as --

want want so have access you not only proven. is want You game block permanent frankly, Quite Focus are on being and entrepreneur, services tangible, the real capital value-added you to again. And tried to to you're that town. in the

contributor claims We -- in to are make that X on a just credibly. starting but States our are them in markets we the growth. also who more can -- these can these credible not the make only meaningful to be international ones And

also is So yes, all travel again. can what's right now we that helpful

M&A so We do successful in many I success most going our prospects. this are our with successful -- our out be years expect that -- most is to history.

We to more millions are of capital. dollars of going of deploy hundreds

chest over war billion course, $X.X will rates. time. that at in have We deploy funded attractive interest we this is very, And of very

our So the is capital lowest of we had. probably cost ever

it partner quite new firm the we of partner to So joins And are to time us, strong introduction position. frankly leads an every firms. next number a extremely in

quality here, Our transactions. at you're existing the you've of for success that well course, of kind seen numbers of group, the looking partner which in future bodes our the and very

Ryan Bailey

Got new is several transitioning importance each yours the the the favorite Or it. about And of in seen last years, we it firms ownership? Have could statistic dynamic of come you to that that of the increase firm? conversations aging idiosyncratic back partner Rudy, kind base. adviser if over with

Rudy Adolf

business Ryan, you deal what's under we which is I we of is actually bespoke consolidating. is industry this course. No. -- that are here. Depending believe It's ultimate interesting, mean, every yes, -- the different, does But in deals close industry the doing maybe to based industry the another should demographics, [X be X], on believe, core deals XXX believe, year. We XXX consulting a this XXX more of this to year. kind group a

You simply year at could you more a look industry. deals this justify industry of an of the momentum when XXX, XXX deal or demographics

a and is more, So basically the capital by can are from starting way that's multiple there disciplined we a which we so why deployment of perspective. backlog what is to reason this opportunity more it up. And means another is see be and building

chest the under mentioned. there simply than of got And I of the more advantage course, was So Jim war else comes why our of of big anybody it. and consolidating. we this billion to to wave the industry better can through, $X.X are is capacity built take we debt whenever I a And kind reason positioned consolidation so

So the have of X/X them, least platforms or active at Many interested are in XX is, net-net beyond. basically, M&A we and U.S. of them in the game.

the future kind And very of the of to are, from into M&A perspective. course, an I continuing look company. optimistic We holding

Operator

question-and-answer Rudy? back closing session. the Rudy to reached remarks. of end now the our for I'll call have over turn We

Rudy Adolf

hear In would Thank with financial you. consistent them, and clients. excitement their outlook our our employees excellence for many year to also business creativity, incredible partners serving the their and and firms of in they In strong travels, we do I continued to rest the thank their expand closing, for to and nothing demonstrate but for of and what for performance partner who like like to thank our and our I clients would beyond. our dedication support intensity worldwide. their continue visiting

drive for strong, years momentum is will excellent sustained and come. Our growth to many

us focused with business the create We we how the incremental have and point excited about that Thank managing shareholders business well at positions will coming incredibly for you on that is discipline and inflection against sustainable meaningful the to years. substantial executing I'm remain and in opportunity ongoing globally. our value our our all.

Operator

conference. you. Thank conclude does This today's

you may time, at thank your for this disconnect participation. lines You your and

Focus Financial Partners (FOCS) 8 Aug 212021 Q2 Earnings call transcript