Alex Bond

Alex Bond asked about the restructuring outlook for 2026, specifically whether revenues are expected to be up, flat, or down compared to 2025, and sought color on the broader restructuring backdrop. He also inquired about the recruiting backdrop for the coming year, expected activity levels, and high-level thoughts on the overall recruiting environment.

Answer

CEO Andrew Bednar expressed strong confidence in the restructuring environment for 2026, across sectors, noting no slowdown, particularly in liability management engagements. He highlighted proactive finance managers seeking to enhance balance sheets and mentioned disruption in software creating activity. Regarding recruiting, Andrew Bednar stated it's a continuous exercise and core strategy, with ample open space for high-quality bankers. He expects a more 'normal' year for recruiting activity compared to the above-average 2025, but noted a strong pipeline.

Alex Bond inquired about the restructuring outlook for 2026, asking if revenues are expected to be up, flat, or down compared to 2025, and sought color on the broader restructuring market backdrop. He also asked for insights into the recruiting environment for the coming year, including expected activity levels and high-level thoughts on the overall talent market.

Answer

CEO Andrew Bednar expressed strong confidence in the restructuring business environment for 2026, noting no slowdown, particularly in liability management engagements, which are driven by proactive finance managers addressing maturities and covenants. He mentioned that disruptions in sectors like software could lead to more activity. Regarding recruiting, Bednar stated it's a continuous core strategy, with ample open space for high-quality bankers. He expects a 'more normal' year for hiring activity compared to the above-average 2025, but the pipeline remains strong.

Alex Bond of KBW asked for an update on the restructuring backdrop, client engagement levels, and whether Perella Weinberg has observed any recent slowdown in new activity, similar to some peers. He also inquired about any shifts in the mix between traditional restructurings and liability management (LME) activity. Additionally, he sought clarification on the expected timeline and potential revenue contribution of the newly acquired Devon Park private capital business.

Answer

CEO Andrew Bednar reported a steady pace of activity in the broad liability management business, not seeing systemic issues despite some high-profile bankruptcies. He expects the restructuring business to contribute more revenue in 2025 than in 2024. Regarding Devon Park, Bednar stated it would be treated as a significant contributor, similar to other groups, and expects it to meaningfully contribute to the overall franchise, noting zero revenue in this area last year and the new product capability across 75 partners.

Alex Bond of KBW asked for an update on the restructuring backdrop, including overall client engagement levels, any recent slowdowns in new activity, and shifts in the mix between traditional restructurings and liability management (LME) activities. He also inquired about the expected revenue contribution from the newly acquired Devon Park business and its potential size relative to M&A and restructuring once fully integrated.

Answer

CEO Andrew Bednar reported a steady pace of activity in the broad liability management business, noting that while some high-profile bankruptcies exist, they appear isolated rather than systemic. He stated that the liability management business continues to grow, will be a higher contributor this year than last, and the team is generating increasing revenue, setting up well for 2026. Regarding Devon Park, Mr. Bednar indicated that it would be treated as a significant contributor, much like other groups, and is expected to contribute similarly to the firm's overall franchise, leveraging the private equity relationships of all 75 partners.

Alex Bond of Keefe, Bruyette & Woods asked for an update on the large-cap deal outlook and whether activity has returned to pre-April levels. He also inquired about the restructuring outlook and how activity levels in that space have evolved since the previous quarter.

Answer

CEO Andrew Bednar stated that the outlook for large-scale transactions has improved, with recent market announcements acting as a 'green light' for other companies, as transactions tend to beget more transactions. Regarding restructuring, which is part of the broader Financing and Capital Solutions business, Bednar reported that the combined business is trending toward a record year and was uninterrupted by the slowdown in April and May. He believes the base of this business is now higher with less volatility than in historical cycles.

Alex Bond inquired about Evercore's expectations for Equity Capital Markets (ECM) in 2026, including the backlog and IPO outlook, and the revenue potential for the equities business if heightened market volatility persists.

Answer

CEO John Weinberg indicated that ECM backlogs are healthy and building, with strong activity expected in the IPO business. He noted Evercore's diversified sector involvement beyond healthcare, supported by ISI research, and anticipates the equities business to strengthen from its Q4 2025 performance.

Alex Bond inquired about Evercore's expectations for Equity Capital Markets (ECM) in 2026, including an update on the backlog and outlook, and the revenue potential for the Equities business if heightened volatility persists.

Answer

CEO John Weinberg reported that ECM backlogs are good and building, with a healthy increase through Q4 2025. He expects Evercore to be involved in a healthy IPO business, noting diversification beyond healthcare into many different sectors, supported by strong research. Weinberg anticipates the ECM business will continue to strengthen from its Q4 levels.

Alex Bond from Keefe, Bruyette & Woods (KBW) asked for an outlook on the Private Capital Advisory (PCA) business, specifically regarding industry secondary volumes for the second half of the year and the evolving competitive landscape.

Answer

Chairman and CEO John Weinberg acknowledged that competition in the PCA space is expected to increase, but expressed confidence in Evercore's strong positioning due to its experienced team and track record. He noted that activity levels remain very strong across both GP and LP-led secondaries and, while the growth rate may not match the first half's pace, he does not foresee a slowdown.

Alex Bond inquired about the increasing institutional base within the Evergreen suite, specifically asking about the dispersion in redemption requests between institutional and retail clients and how institutional clients utilize the liquidity feature.

Answer

Erik Hirsch, Co-Chief Executive Officer, clarified that institutional investors are primarily drawn to the Evergreen Platform for its ease of use and tactical portfolio management capabilities, rather than its liquidity provisions. He noted that small institutional investors are increasingly using Evergreen to re-enter private markets and that Hamilton Lane is not observing higher redemption rates from institutional clients.

Alex Bond followed up on the Evergreen Platform, specifically asking about the increasing institutional client base, the dispersion of redemption requests between institutional and retail clients, and how institutional clients are utilizing the platform's liquidity features.

Answer

Erik Hirsch, Co-Chief Executive Officer, clarified that institutional investors are primarily attracted to Evergreen products for ease of use and tactical portfolio management, rather than liquidity. He noted that institutional clients are not exhibiting higher redemption rates and are using the platform as a portfolio construction tool, with small institutional investors also re-entering private markets through Evergreen.

Alex Bond asked about the main drivers of the higher nominal non-compensation expense expected in 2026, given the guidance for a similar year-over-year growth rate as 2025.

Answer

Helen Meates, CFO, explained that tailwinds for non-compensation expense include less occupancy growth due to significant investments already made in New York and London, and leverage from fixed costs like IT infrastructure. Headwinds are primarily driven by increased headcount, leading to higher travel, market data, and IT/compensation support, despite disciplined expense management.

Alex Bond asked Helen Meates about the main drivers of the higher nominal non-compensation expense expected in 2026, given the guidance for a similar year-over-year increase to 2025.

Answer

Helen Meates, CFO of PJT Partners, explained that tailwinds for non-compensation expense include less occupancy growth (following significant investments in New York and London) and leverage from fixed costs like IT infrastructure and professional fees. Headwinds are primarily driven by increased headcount, leading to higher travel, market data, and IT/communications support. She emphasized disciplined expense management despite these activity-related increases.

Alex Bond of KBW inquired about the overall credit backdrop, including insights from client dialogues, the role of private credit, and the implications of recent high-profile bankruptcies and credit pricing. He also asked about the impact of strong restructuring activity on the compensation ratio and whether a slowdown in restructuring might lead to less comp leverage given the smaller headcount in that business.

Answer

Chairman and CEO Paul Taubman observed that credit might not have been appropriately priced given tightened spreads and noted that malfeasance occurs regardless of market conditions. He emphasized that technological dislocation and innovation will inevitably create "losers alongside winners," suggesting a longer-term trend of increasing companies needing balance sheet adjustments. Regarding the comp ratio, Mr. Taubman explained that while strong restructuring activity benefits the ratio, any significant revenue dislocations (positive or negative) or disconnects between headcount growth and revenue could accelerate or retard the firm's baseline direction to lower the comp ratio.

Alex Bond asked for insights into the overall credit backdrop, considering PJT Partners' strong presence in the Restructuring market, headlines about private credit, and recent high-profile bankruptcies. He also inquired about the impact of stronger Restructuring activity on the compensation ratio and whether a slowdown in Restructuring would lead to less compensation leverage.

Answer

Paul Taubman, Chairman and Chief Executive Officer, observed that credit might be underpriced given tightened spreads and anticipated a return to more normalized pricing. He highlighted that technological dislocation and innovation inevitably create 'losers alongside winners,' suggesting a longer-term trend of more companies needing balance sheet restructuring. Regarding the compensation ratio, Mr. Taubman explained that significant revenue dislocations affect the overall ratio, but with steady growth and matched headcount, the ratio should decline. He noted that a disconnect, like a market downturn with headcount additions, would pressure the compensation line.

Alex Bond of Keefe, Bruyette & Woods (KBW) asked about the PJT Park Hill business, inquiring if the recent improvement in the macro backdrop has positively impacted the challenging fundraising environment. He also sought clarity on whether the expected second-half improvement would be weighted more towards private capital solutions versus primary fundraising.

Answer

Paul Taubman, Founder, Chairman & CEO, explained that the expected second-half strength in Park Hill is due to the timing and lumpiness of closings for fundraisers already in flight, affecting both primary and private capital solutions. He noted that while the primary fundraising market remains challenging due to a supply-demand imbalance, this environment drives a flight to quality that benefits PJT. He also affirmed that the secondary (private capital solutions) business is structurally in a better place with a better match of supply and demand.

Alex Bond asked about the potential for AI-related compensation leverage, including the timing and magnitude of its impact on the compensation ratio. He also requested a non-compensation expense guide for 2026 or an appropriate growth rate for the full year.

Answer

CEO and Chairman Peter Orszag explained AI could drive comp leverage by increasing MD productivity and potentially leading to smaller teams per MD, fostering upward mobility. CFO Mary Ann Betsch guided for a mid- to high-single-digit increase in non-compensation expenses for 2026, aiming to return to the target range as revenues grow.

Alex Bond asked about the specific relationship between AI and compensation leverage, including the timing and potential magnitude of its impact on the comp ratio. He also inquired about the non-compensation expense guide for 2026 or the expected growth rate for the full year.

Answer

CEO and Chairman Peter Orszag explained that AI could drive comp leverage by increasing productivity per Managing Director (lowering the non-MD comp ratio) and potentially allowing smaller teams per MD, fostering upward mobility. CFO Mary Ann Betsch advised expecting a mid- to high-single-digit increase in non-compensation expenses for 2026, depending on FX rates, with the goal of returning to their target range as revenues grow.

Alex Bond inquired about Lazard's recent success in driving net inflows within Asset Management, the role of new client wins and geographic distribution, and confidence in achieving net neutral flows for the year.

Answer

Peter Orszag, Lazard's CEO and Chairman, clarified that significant gross inflows are concentrated in quantitative, systematic, emerging market equities, customized solutions, and sustainable products, with increasing geographic diversification outside the U.S. He noted that year-to-date results are positive, and while net zero flows for the year were a stretch goal, the company is approaching it, driven by a strategic transformation towards promising business areas.

Alex Bond inquired about the recent success in driving net inflows within the Asset Management unit, the role of new client wins and geographic distribution, and confidence in achieving net neutral flows for the year.

Answer

Peter Orszag, Lazard's CEO and Chairman, clarified that significant gross inflows are concentrated in quantitative, systematic, emerging market equities, customized solutions, and sustainable strategies, with increasing geographic diversification outside the U.S. He noted that year-to-date results are very positive towards the 'stretch goal' of flat or net zero flows, indicating a significant business transformation towards promising, sustainable areas.

Alex Bond from Keefe, Bruyette & Woods (KBW) asked for color on the M&A sentiment in Europe compared to the U.S. and inquired about the outlook for the senior banker hiring pipeline for the remainder of the year.

Answer

Peter Orszag, CEO & Chairman, noted that Europe was a disproportionate driver of activity in the first half of the year, but he anticipates a pickup in U.S. activity in the second half. He highlighted significant hiring and expansion in Europe. On the hiring pipeline, Orszag expressed strong satisfaction with lateral recruiting efforts, attributing the success to Lazard's brand, culture, clear strategy, and global footprint, which attract high-quality talent.

Alex Bond questioned the impact of recent geopolitical events and heightened uncertainty on Houlihan Lokey's Corporate Finance activity levels, asking if clients are looking through the noise. He also sought more details on the Capital Solutions group's team build-out and an assessment of what 'inning' the group is in regarding its broader strategic development.

Answer

Scott Adelson, CEO, confirmed that clients are increasingly willing to look through geopolitical noise and proceed with business, leading to stronger activity levels. He stated that Capital Solutions is still in very early innings (e.g., third or fourth inning) of its build-out, experiencing significant demand across traditional, secondaries, directs, and primary businesses.

Alex Bond asked about the Corporate Finance business, specifically if recent geopolitical events or heightened uncertainty have impacted activity levels, or if clients are looking through these issues. He also inquired about the Capital Solutions group's build-out, asking what 'inning' the firm is in and where demand is coming from.

Answer

CEO Scott Adelson stated that clients are increasingly willing to 'look through the noise' of geopolitical events and proceed with business, leading to strong activity levels. He described the Capital Solutions group as being in 'very early innings' (third or fourth inning), experiencing significant demand from traditional business, secondaries, directs, and primary sources.

Alex Bond asked about the acquisition pipeline, specifically if the competitive hiring environment for senior talent is impacting ask prices or creating obstacles on the acquisition front. He also requested an update on the capital solutions business results, its contribution to corporate finance, and comparison to last quarter's levels.

Answer

Lindsey Alley, CFO, stated that the acquisition pipeline remains strong and unchanged from their perspective, with no fundamental shifts in pricing. Scott Adelson, CEO, noted that the capital solutions business has continued to grow very well, faster than the M&A business in this cycle, and now represents at or above 20% of the total corporate finance business, but preferred not to give more specific details.

Alex Bond inquired about the acquisition pipeline, whether the competitive hiring environment for senior talent is impacting ask prices, and if pricing is an obstacle. He also asked for an update on the capital solutions business results and its contribution to corporate finance revenues.

Answer

Lindsey Alley, CFO, stated that the acquisition environment is unchanged, with a strong pipeline and no fundamental shifts in pricing. Scott Adelson, CEO, noted that the capital solutions business has grown faster than M&A in the current cycle and now represents 20% or more of the total corporate finance business, but declined to provide specific quarter-over-quarter comparisons.

Alex Bond of Keefe, Bruyette & Woods (KBW) inquired about the financial sponsor market, asking if sponsor-led activity is expected to increase post-Labor Day. He also requested more detail on the differing M&A recovery trends between the U.S. and EMEA.

Answer

CEO Scott Adelson confirmed that sponsor activity has been muted but is expected to pick up, consistent with the broader market trend. He explained the lag in EMEA's recovery as a normal cyclical difference, noting EMEA was slower to turn down and is now slower to recover. CFO J. Lindsey Alley added that sponsors often use Labor Day as a natural inflection point to go to market.

Alex Bond from KBW asked about the Investment Managers (IMS) business, specifically if the Q3 margin level is sustainable going forward, considering market appreciation and deployment timing, and how ongoing investments might sequentially impact margins. Alex also inquired about the sales mix between U.S. and international for the quarter and year-to-date, and what metrics investors should track to monitor progress on the international front, given the business revamp.

Answer

Sean Denham, CFO and COO, SEI, indicated that while Q3 IMS margins were higher than anticipated due to market appreciation, SEI expects strong margins but also anticipates continued investments in the platform and talent, which might lead to relatively flat or a slight downtick in margins, especially moving into 2026. Ryan Hicke, CEO, emphasized maximizing the IMS opportunity, even if it means adjusting unit-specific margins for overall SEI margin growth. Sanjay Sharma, EVP, CEO, and Global Head of Private Banking and Wealth Management, SEI, and Sean Denham, CFO and COO, SEI, stated that it's still early days for the international strategy, focusing on maximizing presence in existing jurisdictions and leveraging U.S. client relationships. They noted that more detailed breakdowns of international versus domestic growth would come with future segment realignments.

Alex Bond inquired about the Investment Manager Services (IMS) business, asking if the Q3 margin level was sustainable given market appreciation and deployment timing, and how ongoing investments might sequentially impact future margins. He also asked about the sales mix between U.S. and international for the quarter and year-to-date, and what indicators to track for international progress.

Answer

Sean Denham (CFO and COO) noted that Q3 IMS margin improvement was partly unexpected due to market appreciation and that while strong margins are expected, future investments in talent and technology might lead to relatively flat or slightly lower margins into 2026. Ryan Hicke (CEO) emphasized maximizing IMS opportunities even if it means unit margin adjustments, prioritizing overall SEI margins. Sanjay Sharma (EVP, CEO, and Global Head of Private Banking and Wealth Management) and Sean Denham (CFO and COO) stated it's too early to provide detailed international/domestic revenue mix, but the focus is on existing jurisdictions and clients, with more clarity expected upon segment realignment.

Alex Bond asked about other areas of hiring focus for the firm beyond the private capital advisory (PCA) team. He also requested the revenue breakout between M&A and non-M&A activities for the quarter.

Answer

Co-President Navid Mahmoodzadegan stated that while not being specific, the firm has active dialogues with potential candidates in other sectors, focusing on large opportunities and areas where they can build out franchises. CEO Kenneth Moelis confirmed that the revenue split was 'pretty dead on' with the previous quarter's two-thirds M&A and one-third non-M&A mix.