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Chairman and CEO Michael O'Grady stated that the board takes its fiduciary duties seriously and believes the 'One Northern Trust' strategy is the best path for long-term value creation after a period of necessary investment. He explained that the new ROE target is a step, and they will re-evaluate after consistently performing within that range, emphasizing that the strategy balances both growth and returns, not just maximizing ROE.

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CEO Mike O'Grady affirmed the commitment, explaining that organizational changes like centralizing operations and targeted technology investments are designed to drive long-term efficiency. Then-CFO Jason Tyler clarified that the quarterly loan decline was not strategic but reflected normal volatility, with future growth expected to track the overall client franchise.

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Executive Matthew Audette confirmed the Q4 D&A increase was an anomaly driven by the large-scale Prudential technology build and the launch of two new data centers. He affirmed that investors should expect a return to a more normalized growth trajectory of a few million dollars sequentially per quarter going forward.

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President Jim Zelter described the wealth business as a long-term journey built on product, distribution, technology, and performance, with 11 products now available. He stated that ambitions for 2025 remain high, with a focus on global expansion into Europe and Asia. He also highlighted future product innovation around insurance-wrapped products and DC solutions, noting that ADS had a record month in January.

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Co-President James Zelter clarified that the $62 billion in quarterly originations is predominantly debt and that the firm is very satisfied with its 16 diverse platforms, focusing on centralized oversight rather than rationalization. CEO Marc Rowan added that measuring equity origination is a key part of their strategy to grow the hybrid equity business and that the platforms are self-sustaining entities with strong ROEs.

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Chief Financial Officer Alan Kirshenbaum confirmed the Q4 fee rate was reflective of Prima and that IPI had nearly $11 billion in fee-paying AUM at closing, running at about 115 bps. He also reaffirmed prior guidance for 2025, expecting FRE revenue growth in the upper 20s, FRE growth in the mid-to-upper 20s, and FRE per share growth of about 20%.

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Chief Financial Officer Alan Kirshenbaum confirmed that a 100 basis point move in SOFR would impact Part 1 fees by '$50-plus million' in 2025 due to the platform's growth. He reiterated that the payout ratio will flex with interest rates and affirmed the company's commitment to paying out the 'bulk' of its earnings in dividends, a policy that has not changed.

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CFO Joe Simon first clarified that the perceived share count growth was an accounting distortion. CEO Ken Moelis then stated the dividend increase reflects confidence in excess cash generation and that all excess capital will be returned to shareholders via the most effective means, including potential buybacks. On productivity, Moelis expressed optimism, noting that major investments in tech, industrials, and energy are still ramping up, making past peaks potentially attainable.

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CEO Ken Moelis indicated that the business feels like it is gradually improving each quarter, which, combined with some year-end deal closures, suggests positive momentum, though he refrained from giving specific guidance. He confirmed that the 75% comp ratio is a conservative run-rate assumption and that if the market and revenues improve in Q4, the compensation ratio would also improve accordingly.

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CFO Jarrod Phillips reiterated the Investor Day target of 0-150 basis points of FRE margin expansion. He identified the pace of deployment as the primary driver, with faster deployment leading to quicker margin expansion. Other factors include positive REIT fundraising and the full-year revenue impact from prior wealth channel growth.

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CEO Michael Arougheti clarified that distribution costs are uniform across the industry and represent a long-term tailwind, as the upfront costs for permanent capital are quickly absorbed by management fees. CFO Jarrod Phillips explained the Q4 guidance of $90-$95 million is based on a consistent European waterfall outlook, supplemented by the addition of American-style waterfall realizations and other incentive fees not classified as FRPR.

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CFO Jen Dardis clarified that the expense guidance assumes average market conditions from Q4 2024 and standard return assumptions for 2025. She quantified the impact of the new Baltimore headquarters at $20 million to $30 million in 2025, which includes some onetime double rent costs and a step-up for the new space, but noted the firm will seek offsetting savings from its broader real estate portfolio over time.

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CEO Rob Sharps acknowledged the quarter's results were soft but cautioned against over-interpreting a single quarter. He attributed some underperformance to positioning during a 'risk-on' rally. While acknowledging aggregate stats are not where they want them, he expressed confidence in the research platform and noted continued improvement in key franchises like U.S. large-cap growth. He believes no drastic measures are needed and expects aggregate metrics to improve as the poor performance period of late 2021 and 2022 begins to roll off the 3- and 5-year records.

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CEO John Weinberg and CFO Timothy LaLonde addressed this. LaLonde affirmed that the commitment to recruiting remains 'very robust.' Weinberg added that while hiring impacts the comp line, the focus is on long-term value creation. He noted that Evercore has added approximately 60 new senior bankers (through external hires and internal promotions) over the last three years and expects to continue performing at a similar level.

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Chairman and CEO Paul Taubman stated that restructuring growth in 2025 is 'absolutely feasible,' citing a multiyear wave of liability management activity fueled by a large debt stack and persistent economic uncertainty. He noted 2024 was 'comfortably another record' for the business. Regarding IPOs, Mr. Taubman explained that market volatility makes fund continuation vehicles and outright M&A sales more attractive monetization paths for sponsors, especially for large, leveraged portfolio companies.

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Chairman and CEO Paul Taubman clarified that comp leverage is driven by the relationship between Strategic Advisory revenue growth and its specific headcount growth, which are roughly in line for 2024. He expects these to diverge positively in 2025. For Park Hill, Taubman disagreed with the 'handoff' premise, stating that fund continuation vehicles are 'here to stay' and will grow, while the primary market is bifurcating, creating a 'flight to quality' that benefits PJT's differentiated platform.

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CEO Ali Dibadj explained that the firm's ETF success, making it the 8th largest active provider, is built on strong underlying investment products, not just the wrapper. He confirmed more equity ETFs are planned for 2025 and highlighted the Tabula acquisition as key for European expansion. CFO Roger Thompson confirmed that positive markets create operating leverage, which would lower the comp ratio and increase margins, but declined to provide a specific sensitivity rule, noting the complexity of the factors involved.

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CFO Matthew Nicholls clarified the savings would be realized for the full fiscal year 2026 and that the efficiency efforts are firm-wide. He then provided detailed guidance for the upcoming quarter, including an effective fee rate in the mid-to-high 37 basis point range, compensation and benefits of $815-$820 million, and G&A around $190 million, driven by advertising and legal costs.

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CEO Jonathan Steinberg addressed both topics. On M&A, he mentioned potential targets could include ETF sponsors, product lines, or technology firms, stating WisdomTree is on its "front foot." Regarding crypto regulation, Steinberg noted the key change is the banking industry's increased willingness to engage with the asset class, which is crucial for enabling on/off ramps for WisdomTree's digital platforms. He compared the current moment to the year 2000 for ETFs, suggesting a major inflection point for growth.

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CFO Bryan Edmiston disclosed that the annual spend on Prime is forecasted in the low to mid-$20 million range for the year, an increase from the high-teens in prior years. CEO Jonathan Steinberg added that detailed user statistics will be provided in the Q4 update, noting the rollout is now available in approximately 85% of the U.S. but has been slower than anticipated due to the regulatory environment.

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Jonathan Gray, President & COO, acknowledged that overall yields are declining but stressed that the relative return premium of private credit over liquid fixed income remains durable, driving investor interest. Michael Chae, CFO, provided specific guidance, noting that a 50 basis point decline in base rates has an approximate 4% impact on the BCRED platform's run-rate FRPR, a manageable effect that has been offset by NAV growth and inflows.

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President & COO Jonathan Gray acknowledged that absolute returns would moderate but emphasized that the premium over liquid markets will remain durable and attractive. CFO Michael Chae added that the direct impact on FRPR is minimal, quantifying that a 50 basis point decline in yield would only reduce run-rate FRPR by about 3-4%, with offsets from lower liability costs.

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Executive Walter Berman reiterated confidence in the bank's NII position, noting the portfolio is now 87% fixed and that crediting rates are evaluated competitively. Executive Jim Cracchiolo detailed plans to drive loan growth by launching fixed pledge loans, HELOCs, and checking accounts in 2025, while confirming residential mortgages will remain a key component.

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CEO Jim Cracchiolo confirmed a 'nice pickup' in pledge loans and outlined plans for new lending products to drive further growth. On LTC, both he and CFO Walter Berman stated they explicitly considered the 'shareholder reaction' factor but concluded that the financial value destruction of a deal was too significant, citing the block's profitability, the unacceptable counterparty risk, and the value transfer required in the current market.

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CEO Peter Orszag explained that the comp ratio is complex and influenced by the shift towards more productive MDs, which provides operating leverage. He confirmed no plans to increase deferrals and noted the rate was actually brought down. Orszag stated that the pace of buybacks is expected to change over time, with a medium-term objective of offsetting all dilution from stock-based compensation. CFO Mary Ann Betsch added that the 2024 share count increase was due to elevated amortization, a higher share price, and lower buybacks, and she expects buybacks to be higher in the coming year.

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CEO Peter Orszag explained that achieving the 60% comp ratio target is complex and depends heavily on improving MD productivity, which reduces the 'cross-subsidy' of less productive bankers. He affirmed the target is achievable under current expectations for advisory growth but noted aggressive hiring could temporarily raise the ratio. Mr. Orszag explicitly stated that the firm does not anticipate increasing deferrals and, in fact, was able to reduce the deferral rate in 2024.

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CEO Peter Orszag pointed to operating leverage from higher MD productivity as a primary driver. CFO Mary Ann Betsch added that reducing the deferred comp rate is planned but depends on full-year revenue, and that new hires are ramping up faster than historically. Regarding Asset Management, Orszag noted the revenue assumption is for the next year to mirror the last. Evan Russo, CEO of Asset Management, clarified the large outflow was a lower-fee mandate, which mechanically boosts the average fee rate, but he still anticipates some compression as U.S. markets outperform.

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President Paul Shoukry confirmed the assumption about deposit betas was reasonable. He stated the beta on sweep balances has averaged around 35%, while the beta on higher-yielding products like ESP is closer to 100%, consistent with expectations. Regarding C&I loans, Shoukry noted that new origination flow has been muted and spreads have been extremely tight. While hopeful for a pickup in 2025, the firm will not chase growth at spreads that don't meet its risk-adjusted return thresholds, preferring to focus on the strong growth in securities-based loans.

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CFO Jim Marischen explained that the Q4 firm-wide compensation ratio was impacted by the seasonal, back-end loaded funding of the administrative bonus pool. CEO Ron Kruszewski noted that Stifel's advisory strength often comes from middle-market and private deals not fully captured by public data. Regarding 'broken IPOs,' Kruszewski acknowledged it's not a positive trend but stated he is not overly concerned given the significant pent-up demand for both M&A and capital raising.

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CFO James Marischen reported that deposit inflows have continued into both Sweep and Smart Rate products despite rate cuts, with the trend continuing into Q4. He believes a normalizing yield curve is a more significant factor than minor rate changes. CEO Ron Kruszewski confirmed that the M&A environment for sponsors is improving, with market conditions becoming more conducive, though some uncertainty remains around the election.

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CEO Scott Adelson stated that the market is following their anticipated steady improvement. CFO J. Alley added that consolidated revenue growth has been consistently around 24% year-over-year for the past three quarters, indicating a continuation of improvement rather than an acceleration. Regarding seasonality, Scott Adelson noted that the historical 46% first-half and 54% second-half revenue split is a reasonable proxy for the current fiscal year.

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CEO Scott Adelson confirmed that Prytania's revenue is recurring and will sit within the FVA's portfolio valuation business, though its initial impact won't be material. Regarding Restructuring, Adelson clarified that the potential for activity to turn into refinancing is a possibility later in the cycle, not a current trend, and affirmed the business remains at elevated levels. CFO J. Alley added that strong new business activity in Restructuring bodes well for future performance.

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CFO Eric Aboaf clarified that over two-thirds of the loan growth is directed at private markets clients, primarily through capital call financing and BDC lending, which is integral to expanding the high-margin servicing business. Regarding deposit betas, Aboaf explained that while the U.S. dollar beta of 60-65% is representative, the smaller euro and sterling deposit pools can exhibit more volatility due to client mix and volume shifts in any given quarter, which can affect the calculated beta.

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CEO Milan Galik attributed rising margin balances to a strong 'risk-on' appetite from clients, which he expects to continue, maintaining or slightly increasing current levels. He clarified that while most financial advisers do not use margin, sophisticated individual traders and hedge funds are expected to continue deploying leverage aggressively, driving the balances.

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President and CEO Milan Galik stated that the Chinese stimulus was too recent to have observable data on account inflows, promising a potential update next quarter. Regarding the legal charge, CFO Paul Brody and Galik explained that it was an increase to the firm's legal reserve based on an evaluation of ongoing regulatory matters, which is a normal part of business for a regulated financial company.

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CFO Denis Coleman noted that Goldman Sachs is underpenetrated in wealth lending and is investing to grow it, having added $5 billion in balances during the year. On expenses, he explained they are simultaneously driving operating leverage while funding new investments through a disciplined efficiency program. This program, with management committee accountability, creates capacity to invest in scaling the firm and improving client experience.

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CEO David Solomon acknowledged that equity activity has picked up but remains below 10-year averages, though he expects sponsor monetization to accelerate. On private credit, Solomon described the firm's platform as broad and integrated, leveraging its leading origination capabilities in both investment banking and asset management to differentiate itself in the market.

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Michael Policarpo, President and CFO, stated that despite positive tailwinds, the company is sticking with its original guidance of low double-digit accretion for the Amundi deal until closer to the Q1 close. David Brown, Chairman and CEO, addressed M&A strategy by explaining they don't target specific asset classes but rather seek acquisitions that make the company better, with a key focus on increasing size and scale to remain competitive long-term.

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CFO John Redett affirmed they have good visibility for a strong Q4 and will land "in and around 40," explaining that fundraising timelines can shift between quarters. He noted the $26 billion raised year-to-date is the second-best in firm history. CEO Harvey Schwartz added that the wording was not a signal of weakness but a reflection that they prioritize client needs over hitting a precise number in a specific quarter, and that overall momentum is great.

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CFO Jack Weingart confirmed that Q4 is a seasonally strong quarter for FRPR. Both he and Executive Chairman Jim Coulter indicated they would not model significant rate sensitivity into that figure based on current base rate levels and the structure of the underlying Twin Brook loans. They expect a net increase to FRE from this line in Q4.

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CEO John Donahue acknowledged that clients were attentive to the competitor's situation but stated it was impossible to directly attribute FHI's inflows to that specific event versus their ongoing business development efforts. He emphasized that the firm is always engaged with clients and prepared for opportunities, making it difficult to isolate the source of any particular flow.

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CEO Laurence Fink avoided commenting on competitors but confirmed that 'money is in motion' and that large institutional mandate shifts are a regular occurrence. He pointed to BlackRock's recent $30 billion pension fund win as an example and noted that Outsourced Chief Investment Officer (OCIO) mandates are happening with increasing regularity and creating significant opportunities.

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