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CEO Andrew Bednar declined to give specific revenue guidance but expressed pleasure with the broadening of the business, making it less reliant on single large fee events. He highlighted positive leading indicators like client engagement and the immediate impact expected from the Devon Park acquisition. On recruiting, Bednar noted the firm's best hiring year on record creates embedded future growth. He stated it is too early in the year to adjust the compensation margin, which is currently being accrued at the same level as Q1, with a final decision to be made in Q4 based on full-year performance.

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CEO Andrew Bednar stated that Europe is showing more unity and a more accommodative regulatory backdrop, though it is also experiencing a temporary pause similar to the U.S. He confirmed that the slower M&A announcement cadence creates a better environment for recruiting, aligning with the firm's goal to accelerate hiring in 2025.

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Andrew Bednar, Chief Executive Officer, explained that the primary negative impact of the tough antitrust environment was the 'chilling impact' from longer deal closing timelines, and that a lighter touch would be an 'accelerant' for M&A. Regarding recruiting, he acknowledged being 'a little bit below trend,' attributing the slowdown to a longer vetting and transition process for busy candidates, but noted the firm is picking up the pace for 2025.

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Chairman & CEO Chad Abraham confirmed that sponsor conversations are very active with many transactions launched, expecting a pickup in the second half of the year. Regarding the revenue target, he reiterated confidence in the firm's 'brick by brick' strategy of investing in growth areas like technology and services, and stated he expects to see increased productivity from managing directors to help achieve that goal.

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Chairman and CEO Chad Abraham provided a team-by-team breakdown, noting an expected improvement in the largely domestic healthcare market, a potentially down year for energy after a record 2024, and challenges in consumer soft goods. Regarding the Q2 advisory outlook, he clarified that while a decline is expected due to deal timing, it is not anticipated to be a 'major decline' because of offsetting activity in other areas. He described the situation as a 'short-term bump' with many deals ready to launch once market clarity improves.

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Chairman and CEO Chad Abraham responded that conditions have improved in both sectors. He noted that while healthcare M&A is already showing signs of improvement, depository M&A conversations are getting better with an expected pickup in 2025. Regarding the advisory business, Abraham described a 'slow, steady improvement' across all sectors, stating that while processes are not 'frothy,' deals are consistently getting done, which could lead to a longer, more normal cycle.

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CEO Chad Abraham stated that acquisitions remain a top priority for capital allocation due to a strong track record of returns, and the deal pipeline is active. Regarding sponsors, he noted that activity is improving slowly and gradually, not snapping back, but recent pitching has been strong, suggesting continued improvement into 2025.

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CFO Tim LaLonde addressed expense management broadly, stating the firm is focused on balancing investment in talent with cost discipline. He noted the current compensation ratio reflects their outlook and, while he aims to lower it, he did not commit to a near-term timeline. On non-comp expenses, he explained increases were driven by strategic investments in occupancy for expansion and in technology, but on a per-head basis, costs have risen only modestly over several years.

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CEO John Weinberg responded that he does not see Europe's recovery outpacing the U.S., noting both regions face uncertainty. CFO Tim LaLonde added a nuance, pointing out that intra-European trade is not hindered by the same tariffs affecting U.S.-Europe trade, which is a helpful factor for the region.

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CEO John Weinberg expressed confidence that the new group of SMDs will drive productivity as the market improves, stating that reaching the $20 million productivity level through the cycle is achievable. CFO Timothy LaLonde added that the market is still in the early stages of recovery, which should support continued improvement in productivity ratios.

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CFO Timothy LaLonde responded that any improvement in the compensation ratio will be gradual and occur over the near to medium term. He emphasized that the firm is balancing margin improvement with strategic investments in talent to build the firm for an improving market. LaLonde noted that intense competition for bankers and associated hiring costs are significant factors, suggesting a drop to sub-60% levels is not a near-term expectation.

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CEO Scott Adelson reiterated that the environment is improving and indicated a potential pickup in deal volume after Labor Day. CFO J. Lindsey Alley clarified that the 21% growth is strong, just off a higher base from last year. He also confirmed the full-year non-comp expense growth guidance remains in the high single-digits, with Q1 being higher due to a major conference.

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CEO Scott Adelson stated it was too early to provide a meaningful forecast but confirmed that pitch activity and deal processes are moving at a normal rate, with improvements seen quarter-by-quarter. He emphasized that the impact of tariffs is highly specific to sectors and geographies and cannot be applied broadly, even within the industrials segment.

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CEO Scott Adelson acknowledged that competition exists in all business lines. CFO J. Alley elaborated that they view competition in capital solutions as similar to M&A, where they primarily compete with other mid-cap firms, not bulge-bracket banks targeting larger deals. On restructuring, Adelson stated that while liability management deals can lead to future bankruptcies, the primary driver of activity is the high number of 'sick balance sheets' from sustained high interest rates.

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CEO Scott Adelson stated that the M&A strategy remains active and that deal timing is inherently lumpy, with the pipeline remaining robust. CFO J. Alley confirmed the capital allocation priorities are dividend, then acquisitions, then maintaining share count, noting they prefer balance sheet flexibility for deals over open-market buybacks. Regarding sponsor stress, Adelson explained that it's not a significant headwind, as private equity firms manage large portfolios and don't halt all activity due to issues with a single company.

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Paul Taubman, Founder, Chairman & CEO, described the current regulatory environment as more conducive to M&A than the prior administration, with a greater willingness to negotiate remedies. However, he cautioned that heightened sensitivity remains in consumer-facing sectors and that elongated closing timelines still pose a risk. He characterized the M&A recovery as a 'gradual plus,' expecting a slow, steady improvement as uncertainties lift, with the potential for accelerated activity in certain industries due to competitive responses to bold strategic moves.

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Chairman and CEO Paul Taubman described the regulatory climate as a 'mixed bag' that is likely more favorable than the last administration but still lacks clarity, curtailing some large M&A. On recruiting, he affirmed PJT's demand for talent is 'unwavering' and that lower market activity reduces friction costs for candidates, leading to more interest and potentially higher hiring yields for the firm.

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Chairman and CEO Paul Taubman emphasized that PJT is a 'micro story' that can grow regardless of the macro environment. He believes the M&A market is heading toward normalization and views current headwinds as 'the storm before the calm.' Regarding the backlog, he clarified that while the announced backlog was low entering 2024, the pre-announced pipeline was robust, leading to many deals closing within the year. He added that the current backlog contains more large transactions expected to close.

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Chairman and CEO Paul Taubman expressed confidence in the firm's ability to return to its previous ~64% comp ratio, stating, 'I don't see any reason sitting here today that we can't do that.' On capital allocation, he emphasized that the firm's stock is 'incredibly undervalued' and the focus remains on buybacks, viewing large-scale M&A as rare and risky, with PJT having only done two modest deals in its nine-year history.

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CEO Kenneth Moelis explained that restructuring activity has trended 'flattish to slightly down' and expects it to continue that way. He noted that in a strong market with available capital, marginal companies that might have restructured are instead getting acquired or refinanced, shifting revenue to M&A or capital markets. On the comp ratio, Moelis stated the firm decided to maintain the current 69% accrual, as one strong quarter was not enough evidence to adjust it, and they will re-evaluate in the second half of the year based on top-line performance.

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Chairman and CEO Kenneth Moelis stated that while it's too soon to see a major shift in recruiting, Moelis & Company's strong, unlevered balance sheet remains a key advantage in attracting talent. He confirmed a strong hiring focus on the private capital advisory business. Regarding the comp ratio, Moelis declined to provide a specific formula due to market volatility and variable hiring pace, but reiterated the firm's goal is to lower the ratio over time while investing in growth.

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CEO Ken Moelis estimated sponsor activity is at a '6 out of 10' with a bias toward more aggression. He believes restructuring is driven more by interest rates than a lack of M&A exits. Regarding the comp ratio, Moelis and CFO Joe Simon indicated that the revenue level needed to reach the low-60s is likely higher now, given the firm's continued significant investments in talent and new business lines.

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CEO Ken Moelis explained that the headcount increase is partly due to pre-hiring junior talent for incoming senior bankers and also a direct result of longer deal completion times, which requires servicing a larger-than-usual backlog of transactions. CFO Joe Simon clarified the year-to-date headcount growth was closer to 12%. On acquisitions, Ken Moelis reiterated his preference for organic growth and strategic team lift-outs, like the SVB transaction, over large, culturally complex M&A deals.

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Peter Orszag, CEO & Chairman, clarified that the advisory mix is roughly 60% M&A and 40% non-M&A, with the non-M&A share having ticked up slightly from last year. He highlighted significant growth within non-M&A from liability management and a record first half for the PCA (fundraising) business. Regarding restructuring, he explained that even in a constructive market, opportunities exist, and the business has successfully diversified into liability management and achieved a better balance between debtor and creditor assignments.

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CEO Peter Orszag confirmed the backlog in Europe is expanding faster than in the U.S., highlighting the benefit of Lazard's deep local roots. He noted cross-border activity could involve relocating production to lower-tariff countries, not just into the U.S., and also an increase in Europe-Europe deals. He added that Lazard's Capital Solutions group is very active in helping clients find financing as traditional debt markets face challenges.

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CEO Peter Orszag stated that significant changes in the asset business are not needed to achieve the firm's overall comp ratio targets. CFO Mary Ann Betsch clarified that the biggest driver of the AM comp ratio increase was a decrease in deferral rates, and the underlying ratio is relatively flat. On M&A, Orszag noted that both strategics and sponsors are now quite active, with private equity coming back onto the playing field, creating a constructive environment across the board.

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CEO Peter Orszag stated that significant changes in the Asset Management business are not necessary to achieve the firm's overall compensation ratio goals. CFO Mary Ann Betsch clarified that the recent increase in the Asset Management comp ratio was primarily driven by a firm-wide reduction in deferral rates, a change that was more pronounced in that segment. On M&A, Mr. Orszag noted that both strategic and sponsor clients are now highly active, with private equity re-engaging significantly since late 2024.

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CEO Peter Orszag explained that achieving a sub-60% comp ratio is contingent on two key factors: continued M&A market recovery, particularly with increasing private equity activity, and maintaining the firm's planned hiring rate of 10-15 net managing directors annually. Orszag emphasized that the firm would seize exceptional hiring opportunities even if it meant the comp ratio declined less than anticipated in the short term, viewing it as a long-term benefit for shareholders.

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CEO Harvey Schwartz confirmed that Carlyle repurchased $550 million in shares in 2024, with $850 million remaining on the authorization. He stated the company will remain active with buybacks in 2025, viewing the stock as attractive, while balancing capital return with aggressive investments to drive long-term growth. He also noted the share count has shrunk for the first time in the firm's public history.

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