Q4 2023 Perella Weinberg Partners Earnings Call
Operator: Please stand by; your program is about to begin. Good morning, and welcome to the Perella Weinberg full year and fourth quarter 2023 earnings conference call. During today's discussion, all callers will be placed in a listen-only mode, and following management's prepared remarks, the conference call will be open to questions from the research community. This conference call is being recorded. At this time, I'd like to turn the conference over to Taylor Reinhart, Head of Communications and Marketing. Please go ahead.
Please standby your program is about to begin.
Good morning, and welcome to the Perella Weinberg full year and fourth quarter 2023 earnings conference call. During today's discussion I'll colors will be placed in a listen only mode and following management's prepared remarks the con.
Prince call will be open for questions from the research community.
Call is being recorded.
At this time I'd like to turn the conference over to Taylor Reinhart head of communications and marketing.
Please go ahead.
Taylor Reinhart: Thank you, operator, and welcome all. Joining me today are Andrew Bednar, Chief Executive Officer, and Alex Gottschalk, Chief Financial Officer. Before we begin, I'd like to note that this call may contain forward-looking statements, including PWP's expectations of future financial and business performance and conditions and industry outlook. Such statements are inherently subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those discussed in the forward-looking statements and are not guaranteed by future events or performance.
Thank you operator and welcome all joining me today are Andrew Burton, our Chief Executive Officer, and Alex Gottschalk, Chief Financial Officer before we begin I'd like to note that this call may contain forward looking statements, including P. W. P is expectations of future financial and business performance and conditions and industry outlook forward looking statements.
Currently subject to risks uncertainties and assumptions that could cause actual results to differ materially from those discussed in the forward looking statements and are not guarantees of future events or performance.
Taylor Reinhart: Please refer to PWP's most recent SEC filings for a discussion of certain of these risks and uncertainties. The forward-looking statements are based on our current beliefs and expectations, and the firm undertakes no obligation to update any forward-looking statements. During the call, there will also be a discussion of some metrics, which are non-GAAP financial measures, which management believes are relevant in assessing the financial performance of the business.
So far the PW piece, most recent SEC filings for a discussion of certain of these risks and uncertainties. The forward looking statements are based on our current beliefs and expectations and the firm undertakes no obligation to update any forward looking statements. During the call. There will also be a discussion of some metrics, which are non-GAAP financial measures.
We're trying to check believes are relevant in assessing the financial performance of the business. He WP has reconciled these items to the most comparable GAAP measures in the press release filed with today's form 8-K, which can be found on the company's website.
Taylor Reinhart: PWP has reconciled these items to the most comparable gap measures in the press release files using today's Form 8K, which can be found on the company's website. I will now turn the call over to Andrew Bednard to discuss our results. Thank you, Taylor.
I'll now turn the call over to Andrew Badinage to discuss our results.
Thank you Taylor and good morning.
Andrew Bednar: And good morning. Today, we reported 2023 full-year revenues of $649 million, up 3% from a year ago, with fourth quarter revenues of $213 million, up 16% from a year ago, and a large contributor to our strong full-year performance. We're pleased with how we navigated 2023's challenging market environment, growing our revenue while the M&A market globally saw closings down 30 percent. Three factors drove our outperformance compared to the broader market, our relative scale, our weighting towards corporate clients, and our broader service offering. Our business model demonstrated not only resilience, but an ability to outperform as clients continue to seek and value our advice through psych. Our financial performance was supported across our industries, with nearly all of our sectors experiencing growth year over year, and by a number of large deals with higher fees, especially within our M&A business.
Today, we reported 2023 full year revenues of $649 million up 3% from a year ago with fourth quarter revenues of $213 million up 16% from a year ago and a large contributor to our strong full year performance.
We're pleased with how we navigated 2020, three's challenging market environment growing our revenue well the M&A market globally saw closings down 30%.
Three factors drove our outperformance compared to the broader market on a relative scale, our weighting towards corporate clients and our broader service offering our business model demonstrated not only resilience, but an ability to outperform that as clients continued to seek and value our advice through cycles.
Our financial performance was supported across our industries with nearly all of our sectors experiencing growth year over year.
And by a number of large deals with higher fees, especially within our M&A business.
Andrew Bednar: Early signs of improvement in market conditions and sentiment, which we saw begin in the second quarter of 2023, have given way to a broader market inflection, which has driven activity and dialogue levels, and today, our announced impending backlog stands at a record high. However, we expect the speed at which we recognize this backlog into revenue, especially for some of the larger deals, to still be slower than our historical norms.
Early signs of improvement in market conditions, and sentiment, which we saw begin in the second quarter of 2023 have given way to a broader market inflection, which has driven activity and dialogue levels and today, our announced and pending backlog stands at a record high.
We expect the speed at which we recognize this backlog into revenue, especially for some of the larger deals to still be slower than our historical norms. Nevertheless, a resumption of growth in the traditional M&A markets has begun.
Andrew Bednar: Nevertheless, a resumption of growth in the traditional M&A markets has begun. Our financing and capital solutions business, which includes restructuring, made terrific progress during 2023, and client activity remains at elevated levels. The need for restructuring and liability management advice is high and growing.
Our financing and capital solutions business, which includes restructuring made terrific progress during 2023 and client activity remains at elevated levels.
Need for restructuring and liability management advice is high and growing.
Andrew Bednar: This is a response, in part, to the higher interest rate environment and increasing complexity in financing markets, and also a result of structural challenges in certain industries, such as telecom and technology. In addition to several large mandates, including our lead role in the largest crypto exchange bankruptcy, there has been a considerable uptick in recent activity, which is fueling our 2024 pipeline. Our integrated and collaborative model has proven valuable, with many recent restructuring mandates requiring deep industry subject matter expertise, generating better client outcomes, and often leading to future M&A activity. In our capital markets business, the level of dialogue around financing and private credit, in particular, has increased substantially as our financing and debt advisory team has now integrated fully and seamlessly into our platform. Talent development and acquisition remain essential ingredients to our success and growth.
A response in part to the higher interest rate environment, and increasing complexity in financing markets.
And also a result of structural challenges in certain industries, such as in telecom and technology.
In addition to several large mandates, including our lead role in the largest crypto exchange bankruptcy there hasn't been a considerable uptick in recent activity, which is fueling our 'twenty 'twenty four pipeline.
Our integrated and collaborative model has proven valuable with many recent restructuring mandates requiring deep industry subject matter expertise generating better client outcomes, and often leading to future M&A activity.
And our capital markets business the level of dialogue around financing and private credit in particular has increased substantially as our financing and debt advisory team has now integrated fully and seamlessly into our platform.
Talent development and acquisition remains essential ingredients to our success and growth.
Andrew Bednar: We are adding industry subject matter services and capabilities that matter to our clients. In 2023, we added seven new advisory partners and seven new managing directors, increasing our industry knowledge and coverage in technology, business services, and shareholder analytics and activism. In 2024, we intend to remain active in recruiting senior bankers in strategically attractive segments while remaining disciplined in our admissions criteria.
We are adding industry subject matter of services and capabilities that matter to our clients and.
In 2023, we added seven new advisory partners, and seven new managing directors, increasing our industry knowledge and coverage and technology business services and in shareholder analytics and activism.
In 'twenty 'twenty four we intend to remain active in recruiting senior bankers in strategically attractive segments, while remaining disciplined in our admissions criteria already in 'twenty 'twenty four we have welcomed the managing director to our team in Europe and have a U S based partner expected to join the firm during the second quarter.
Our journey to a billion in revenue and achieving scale continues with our progress measured by topline results and much more.
Andrew Bednar: Already in 2024, we have welcomed a managing director to our team in Europe and have a U.S.-based partner expected to join the firm during the second quarter. Our journey to a billion in revenue and achieving scale continues, with our progress measured by top line results and much more. Our current team is stronger and more diversified than a year ago, with the in-place capacity to increase the firm's revenue and per-partner productivity. Our client relationships have deepened and expanded, as evidenced by recent high-profile transactions in which we were the exclusive or lead advisor, including two of the five largest announced transactions in January, one in financials and one in industrials.
Our current team is stronger and more diversified than a year ago with the in place capacity to increase the firm's revenue and per partner productivity.
Client relationships have deepened and expanded as evidenced by recent high profile transactions in which we were exclusive or lead advisor, including in two of the five largest announced transactions in January one in financials and one in industrials. These factors combined with the inflection in the market are beginning to create a tail.
For our business in 2020 for Alex I'll now turn the call over to you to review our expenses and capital management.
Thank you Andrew our adjusted compensation expense represented 70% of revenues in 2023 exactly as we indicated in December approximately 3% above 2022, and we believe appropriate given the industry response to market conditions and our continued targeted investment in talent through cycles, our adjusted non compensation.
Alex Gottschalk: These factors, combined with the inflection in the market, are beginning to create a tailwind for our business in 2024. Alex, I'll now turn the call over to you to review our expenses and capital management. Thank you, Andrew. Our adjusted compensation expense represented 70% of revenues in 2023, exactly as we indicated in December, approximately 3% above 2022, and we believe it is appropriate given the industry response to market conditions and our continued targeted investment and talent through cycles. Our adjusted non-compensation expense was $144 million for the full year 2023, up 17% from a year ago and within the expected range we provided at the start of 2023.
It was $144 million for the full year 2023 up 17% from a year ago and within the expected range. We provided at the start of 2020 three for.
'twenty 'twenty four we expect the percentage increase in non comp spend to abate and be in the single digit range with the increase driven by elevated depreciation expense and some investment spend related to TNT and I T.
Continue to carefully manage our expenses and as we scale up revenue our operating leverage will be evident as we expect non comp as a percentage of revenue to fall in time as revenue grows we maintain a strong capital position with $338 million in cash and short term investments and no debt. We are committed to returning X.
Less capital to shareholders and managing our share count to mitigate dilution from stock based compensation in 2023, we returned a total of $65 million to investors through repurchases net settlement in lieu of share issuance says dividends and distributions. Additionally, this morning, we declared a quarterly dividend of seven cents per share.
Alex Gottschalk: For 2024, we expect the percentage increase in non-comp spend to abate and be in the single-digit range, with the increase driven by elevated depreciation expense and some investment spend related to T&E and IT. We continue to carefully manage our expenses, and as we scale up revenue, our operating leverage will be evident, as we expect non-comp as a percentage of revenue to fall in time as revenue grows. We maintain a strong capital position with $338 million in cash and short-term investments and no debt.
Operator, please open the line for questions.
At this time, if you'd like to ask a question. Please press the star and one on your telephone keypad.
Keep in mind, you may remove yourself from the question queue at any time by pressing star and two again.
And if you would like to ask a question today. Please press the star and one keys now.
We will take our first question from Devin Ryan with JMP Securities. Please go ahead. Your line is open.
Great. Thanks, so much good morning, Andrew and Alex.
Alex Gottschalk: We are committed to returning excess capital to shareholders and managing our share count to mitigate dilution from stock-based compensation. In 2023, we returned a total of $65 million to investors through repurchases, net settlement in lieu of share issuances, dividends, and distributions. Additionally, this morning, we declared a quarterly dividend of $0.07 per share.
Good morning, how are you.
Doing great.
Just wanted to start with a big picture question, Andrew you've spoken about scale of affirmative being kind of less tethered to the overall M&A market.
Obviously, you know what I think we saw that and 23, where you grew revenues when those were down pretty meaningfully.
You mentioned the backlogs at a record as well so as we look out over the next couple of years.
How would you contextualize Pearl weinberger ability to kind of grow faster than the broader M&A market just trying to think about whether it's you know.
Operator: With that, Operator, please open the line for questions. At this time, if you'd like to ask a question, please press the star and 1 on your telephone keypad. Keep in mind, you can remove yourself from the question queue at any time by pressing star and 2.
You know that.
Kind of think about the growth of the senior banker footprint plus the growth of the broader industry or.
All their network effects because of all the white space just love to get some of your thoughts on kind of that algorithm of growth from here.
Operator: Again, if you would like to ask a question today, please press the star and 1 keys now. We'll take our first question from Devin Ryan with JMP Securities. Please go ahead, your line is open. Great. Thanks so much.
Yeah. Thanks, Kevin.
So we.
We do think that the growth algorithm for the firm.
It's quite different than some of the peers, who have larger scale. So as I mentioned in the opening remarks part of the reason for our outperformance is our scale.
But also the way that we're structured around our.
Devin Ryan: Good morning, Andrew and Alex. Good morning. How are you?
Our client centric model and a more diversified service offerings. So those three factors I think continue to drive.
Andrew Bednar: They are doing great. I just want to start with a big picture question, Andrew. You know, you've spoken about the scale of the firm and being kind of less tethered to the overall M&A market. And obviously, I think we saw that in 2023, where you grew revenues when most were down pretty meaningfully. You mentioned the backlogs at a record high as well. So as we look out over the next couple of years, how would you contextualize Pearl Weinberg's ability to kind of grow faster than the broader M&A market? You know, just trying to think about whether it's, you know, kind of thinking about the growth of the senior banker footprint plus the growth of the broader industry, or, you know, are there network effects because of all the white space? Just want to get some of your thoughts on kind of that algorithm of growth from. Yeah, Devin. So,
Our outperformance relative to the broader market. It's still the case that we are not as tethered.
So the overall announced in closing market when you look at global M&A.
And I think that will be the case for some time. It's also the case that when we are adding partners. We haven't reached the point of conflict or saturation with other parts of the business and we look for non linear growth when we hire partners. So that they don't simply come in.
To add to our mix simply the revenue even clients they bring but rather enhance the whole of the firm where they can leverage our restructuring liability management shareholder activism and analytics, our financing advisory and debt advisory practice as well as our M&A business. So we're just not at a point where.
We're adding partners and Hugh you potentially get some dis synergy from that is you get much larger where sort of nowhere near that in our planning horizon as we look forward with respect to our growth algorithm.
Andrew Bednar: We do think that the growth algorithm for the firm is quite different from some of the peers who have larger scale. So, as I mentioned in the opening remarks, part of the reason for our outperformance is our scale, but also the way that we're structured around our client-centric model and a more diversified service offering. So those three factors, I think, continue to drive our outperformance relative to the broader market. It's still the case that we are not as tethered to the overall announced and closing market when you look at global MA. And I think that will be the case for some time.
Okay terrific, Thanks, Andrew and just a follow up on compensation, obviously, Jeff.
The comp ratio of 70% and 23 was a bit higher.
Then kind of the targeted mid sixty's to the firm. So just love to get some updated thoughts on how youre thinking about the level of revenues, where the environment that you need to be and to get back. There also appreciating there's some nuance as well thank you.
Yeah look comp is something you know we look at it very very carefully and we have to get that right. Because it's a multi variable equation, where not only are our team's affected but also our shareholders and as you know.
Andrew Bednar: It's also the case that when we are adding partners, we haven't reached a point of conflict or saturation with other parts of the business. And we look for non-linear growth when we hire partners so that they don't simply come in and add to our mix simply the revenue and clients they bring but rather enhance the whole of the firm where they can leverage our restructuring, liability management, shareholder activism, and analytics, our financing advisory, the debt advisory practice, as well as our M&A business. So we're just not at a point where we're adding partners, and you potentially get some dis-synergy from that as you get much larger. We're sort of nowhere near that in our planning horizon as we look forward with respect to our growth algorithm. Okay, terrific. Thanks, Andrew.
As partners and employees own about 50% of the firm and so.
We're very incentivized and aligned with our shareholders and making sure that we get the comp ratio just right. We bought this year, given our investing and given the state of the market and what some of the competitive responses were in the marketplace regarding compensation that it was prudent to.
Take up the margin a bit on the 300 basis points, what we exactly what we signaled we would do back in December so that we took out a surprise from our announcements today, but we thought that was the prudent sharing of some of the investments that we've made and some of the other inflationary pressures that we do.
Do see when we go down our comp stack and.
Again, Ive said in the past that some of comp is really capex. When you think about it I know I say it every time I'll never win the argument with the accounting community, but you know these are our assets. These are are productive.
Alex Gottschalk: And just a follow-up on compensation, obviously, you know, the adjusted comp ratio of 70% in 2023 was a bit higher than kind of the targeted mid-60s for the firm. So just want to get some updated thoughts on how you're thinking about the level of revenues, what environment you need to be in to get back there. Also appreciating there's some nuance as well.
Capabilities at the firm and you have to invest in those capabilities. So that you're not then out trying to buy spot market resources as markets rebound. So we think we've made prudent investments in new people, who didn't investments in helping our.
Future productive.
Alan a ramp up in our system as well as pay those who've had a highly productive years and again sharing that burden with our shareholders, but recognizing we to our shareholders.
Alex Gottschalk: Yeah, look, comp is something we look at very, very carefully. And we have to get that right, because it's a multivariable equation where not only are our teams affected but also our shareholders. And as you know, we, as partners and employees, own about 50% of the firm. And so we're very incentivized and aligned with our shareholders in making sure that we get the comp ratio just right.
Yeah, absolutely, okay, great I'll leave it there, but thanks so much.
It takes time.
We'll take our next question from Stephen <unk> with Wolfe Research. Please go ahead. Your line is open.
Good morning, This is Brendan O'brien filling in for Steven.
I guess just sorry.
Comments on the backlog being at record levels as encouraging.
You seem to imply that restructuring and liability management comprised a greater percentage of that backlog than usual. So I just wanted to get a sense as to what that backlog looks like today relative to what you would typically see and maybe how that mix has evolved over the last year.
Alex Gottschalk: We thought this year, given our investing and given the state of the market and what some of the competitive responses were in the marketplace regarding compensation, that it was prudent to take up the margin a bit, 300 basis points, which we exactly signaled we would do back in December, so that we took out a surprise from our announcement today. But we thought that was a prudent share of some of the investments that we've made and some of the other inflationary pressures that we do see, you know, when we go down our comp stack. And, again, I've said in the past that some of the comp is really CapEx when you think about it. I know, I say it every time: I'll never win an argument with the accounting community.
Yeah.
Yeah. Thanks for the question no thats not the case actually our M&A backlog of announced and pending closing transactions that specific backlog is.
Much more in M&A than it is in restructuring.
The pipeline of both restructuring and M&A.
Our app. So those two pipelines are up from where we stood last quarter and where we stood last year. So that I'm glad you asked the question and I'm.
Glad I had the opportunity to clarify that that they announced and pending backup.
Backlog is largely driven by an increase in M&A.
That's helpful color and I guess, turning to advisory specifically I just wanted to touch on Europe, a bit from what we can see in the public data European activity was quite strong in the back half of last year and one of your peers also called out strengthen.
Devin Ryan: But, you know, these are our assets, these are our productive capabilities at the firm, and you have to invest in those capabilities so that you're not then out trying to buy spot market resources as markets rebound. So we think we've made prudent investments in new people, prudent investments in helping our future productive talent ramp up in our system, as well as pay those who've had highly productive years. And, again, sharing that burden a bit with our shareholders but recognizing that we too are shareholders. Yep, absolutely.
And the performance of the region as well so I just wanted to get a sense as to whether this is consistent with what youre seeing in the business and whether there is any difference in the tone of discussions or pace in activity between the U S and Europe.
Yeah.
So I think we see that the tone and pace of activity to be consistent with what our peer group is reporting and I think beyond the ground conditions, there are pretty ripe for activity both in traditional M&A as well as in restructuring liability management I think we've had a bit of a lag on some of our larger transactions.
Operator: Okay, great. I'll leave it there, but thanks. Take 10.
Operator: We'll take our next question from Steven Chubak with Wolf Research. Please go ahead, your line is open. Good morning. This is Brendan O'Brien filling in for Stephen.
And bring them to market and two announcements. So we probably had less recognition into revenue and 23 from our European business than would otherwise be suggested by the level of the level of activity, but we're quite encouraged by the increase in engagements as well as in overall dialogue in Europe.
Brendan O'brien: I guess to start, your comments on the backlog being at record levels are encouraging, but you seem to imply that restructuring and liability management comprise a greater percentage of that backlog than usual. So I just want to get a sense as to what that backlog looks like today relative to what you would typically see and maybe how that mix has evolved over the last year. Yeah, thanks for the question. No, that's not the case, actually.
Alright, Thank you for taking my questions.
Thank you.
We will take our next question from James <unk> with Goldman Sachs. Please go ahead. Your line is open.
Good morning, and thank you for taking my questions I just wanted to start with I'm thinking about some of the productivity numbers for you I think some of the historical data that we have with your peers that have been public for longer and also I think the business has changed quite dramatically over the past five or six years. So I just wanted to ask how you're thinking about normalized productivity for your partner base.
Andrew Bednar: Our M&A backlog of announced and pending closing transactions, that specific backlog is up much more in M&A than it is in restructuring. The pipelines of both restructuring and M&A are up. So, those two pipelines are up from where we stood last quarter and where we stood last year. So, I'm glad you asked the question, and I'm glad I had the opportunity to clarify that the announced and pending backlog is largely driven by an increase in M&A. I guess, turning to advisory specifically, I just want to touch on Europe a bit.
Is it more in the mid teens millions level like what we saw in 2018 in 2021 are closer to a $10 million like we saw in 2017 at 1922 in this year.
Yes, Hi, James Thanks for the question. So we are definitely moving up and seeking to move up in our overall productivity per partner.
This year, we came in around $10 million last year with similar as you mentioned in 'twenty, one and 18 were more like $15 million, we certainly aspire to be in the $15 million category. It is a function of course of overall revenue and market conditions, but also how much you invest in new talent, because new talent does require some <unk>.
Andrew Bednar: From what we can see in the public data, European activity was quite strong in the back half of last year, and one of your peers also called out strength in the national economy and strength in the performance of the region as well. So I just wanted to get a sense as to whether this is consistent with what you're seeing in the business and whether there's any difference in the tone of discussions or pace and activity between the U.S. and Europe. So I think we see the tone and pace of activity to be consistent with what our peer group is reporting, and I think the on-the-ground conditions there are pretty ripe for activity, both in traditional M&A as well as in restructuring and liability management.
Time.
To ramp up and usually it's not a vertical take off it's much more of a gradual take off when you hire.
Individuals or teams to the platform. So we will look at our in place partners and their productivity those who are here at least three years and make sure that we're making the right investment decisions. But then also you have to account in the overall productivity.
Partners, who are recently, joining the firm or have been recently promoted where again the ramp up is a bit more gradual and those tend to bring down your productivity metrics, but theyre also the built in organic opportunity to grow revenue overtime.
Okay that makes sense and maybe just a related one on the investment.
A quick one versus just maybe could you give us the partner count at the end of the year just for our models and then when you look ahead. How are you seeing the competition for talent today I think some of your peers have talked about potentially slowing hiring into 2024. So I guess just hiring expectations for next year in 'twenty five.
Andrew Bednar: I think we've had a bit of a lag on some of our larger transactions in bringing them to market and to announcement, and so we've probably had less recognition of revenue in 23 from our European business than would otherwise be suggested by the level of activity, but we're quite encouraged by the increase in engagements as well as in overall dialogue in Europe.
Yeah. So the partner count is at 64.
And we expect to be active in recruiting in 'twenty four as we had then in 'twenty three and before that we haven't participated in.
Brendan O'brien: Great, thank you for taking my question. Thank you. We'll take our next question from James Yarrow with Goldman Sachs. Please go ahead, your line is open.
And the rapid rise of recruiting that we see in some other firms. We have continued to be very disciplined in how we grow.
James Yarrow: Good morning, and thank you for taking my questions. I just wanted to start by thinking about some of the productivity numbers for you. I think we do lack some of the historical data that we have with your peers that have been public for longer. And also, I think the business has changed quite dramatically over the past 5 or 6 years. So I just wanted to ask you how you think about normalized productivity for your partner base. Is it more in the mid-teens, millions level like we saw in 2018 and 2021, or closer to 10 million like we saw in 2017, 19, 22? Yeah, hi James.
We want to make sure that we're hiring senior bankers, who are strategically and financially as well as culturally an excellent fit for our firm we have been seeing more and more candidates and that gives us.
A greater pool to select from but the increase in candidates and applications. If you will has not led to a change in our admission criteria. So we're still really strict on how we think about areas, where we can grow and as I said earlier, we really look for non linear growth not just adding the revenue of partner would bring to the.
Andrew Bednar: Thanks for the question. So we are definitely moving up and seeking to move up in our overall productivity per partner. This year, we came in around $10 million. Last year was similar.
Affirmed that really thinking about a multiplier on that when partners come into our ecosystem and help to grow and drive our business. So we will continue to be active we have a very healthy pipeline of potential candidates.
Andrew Bednar: As you mentioned, $21 million and $18 million were more like $15 million. We certainly aspire to be in the $15 million category. It is, of course, of overall revenue and market conditions, but also how much you invest in new talent, because new talent does require some time to ramp up. Usually, it is not a vertical takeoff.
We think being discipline, there is a prudent and.
A proper way to grow our firm.
That makes sense, thanks a lot.
Thank you.
Okay.
And there are no further questions on the line at this time I will now turn the call back to Andrew Bettendorf for closing remarks.
Great. Thank you operator.
I'll close the call by saying first thank you to our team.
Andrew Bednar: It is much more of a gradual takeoff when you hire individuals or teams onto the platform. So we will look at our in-place partners and their productivity, those who have been here at least three years, and make sure that we are making the right investment decisions. But then also you have to account for the overall productivity of those partners who are recently joining the firm or have been recently promoted where, again, the ramp-up is a bit more gradual. And those tend to bring down your productivity metrics, but they are also the built-in organic opportunity to grow revenue over time.
Their hard work and dedication and many contributions to our firm.
And thank you to our clients for their trust and support.
And thank you our analysts and investors for your interest in Perella Weinberg and for joining today's call and we'll speak again in May.
Okay.
This does conclude today's program. Thank you for your participation and you may now disconnect.
Okay.
Goodbye.
Okay.
Okay.
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James Yarrow: Okay, that makes sense. And maybe just a related one on the investment. Could you give us the partner count at the end of the year, just for our models? And then, when you look ahead, how are you seeing the competition for talent today?
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Andrew Bednar: I think some of your peers have talked about potentially slowing hiring into 2024, so I guess just hiring expectations for next year. Yeah, so the partner count is at 64, and we expect to be active in recruiting in 24 as we have been in 23 and before that. We haven't participated in the rapid rise of recruiting that we see in some other firms.
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Andrew Bednar: We have continued to be very disciplined in how we grow. We want to make sure that we're hiring senior bankers who are strategically and financially as well as culturally an excellent fit for our firm. We have been seeing more and more candidates, and that gives us a greater pool to select from, but the increase in candidates and applications, if you will, has not led to a change in our admission criteria.
Yeah.
Uh huh.
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James Yarrow: So we're still really strict about how we think about areas where we can grow, and, as I said earlier, we really look for non-linear growth, not just adding the revenue a partner would bring to the firm but really thinking about a multiplier on that when partners come into our ecosystem and help to grow and drive our business. So we'll continue to be active. We have a very healthy pipeline of potential candidates, but we think being disciplined there is prudent and a proper way to grow our firm. That makes sense.
Uh-huh.
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James Yarrow: Thanks a lot. Thank you. Bye! And there are no further questions on the line at this time. I'll now turn the call back to Andrew Bednar for closing remarks. Great, thank you, operator.
Hmm.
Mhm.
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Andrew Bednar: I'll close the call by saying first, thank you to our team for their hard work and dedication and many contributions to our firm. And thank you to our clients for their trust and support. And thank you, our analysts and investors, for your interest in Perella Weinberg and for joining today's call. We'll speak again in May. Thank you. This does conclude today's program. Thank you for your participation, and you may now disconnect. Goodbye, Bum bum bum bop bump bum bum bum bum ham haam, and you can get it done with a couple of tools. So what I'm going to do is I'm going to go to the device, and I'm going to type in the, See those?
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Hum.
Yeah.
Okay.
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Okay.
Yeah.
Yeah.
Yeah.
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Uh huh.
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