Q2 2024 Piper Sandler Co Earnings Call

Operator: Good morning, and welcome to the Piper Sandler Company's second quarter 2024 earnings conference call. Today's call is being recorded and will include remarks by Piper Sandler Management followed by a question and answer session. I will begin by turning the call over to Kate Winslow. Please go ahead.

Operator: Good morning and welcome to the Piper Sandler Company's Second Quarter, 2024 Earnings Conference Call. Today's call is being recorded and will include remarks by Piper Sandler management followed by a question-and-answer session.

Good morning, and welcome to the Piper Sandler companies second quarter 'twenty 'twenty four earnings conference call. Today's call is being recorded and will include remarks by Piper Sandler management, followed by a question and answer says.

Operator: I will begin by turning the call over to Kate Winslow. Please go ahead.

I will begin by turning the call over to Kate Winslet. Please go ahead.

Kate Winslow: Thank you, Operator. Good morning, and thank you for joining the Piper Sandler Company's second quarter 2024 Earnings Conference Call. Hosting the call today are Chairman and CEO Chad Abraham, our President, Deb Schoneman, and CFO Kate Clune.

Kate Winslow: Thank you, operator. Good morning, and thank you for joining the Piper Sandler Company's second quarter 2024 earnings conference call. Hosting the call today are Chairman and CEO Chad Abraham, our President Deb Schoneman, and CFO Kate Clune. Earlier this morning, we issued a press release announcing Piper Sandler's second quarter 2024 financial results, which is available on our website at PiperSandler.com. Today's discussion of the results is complementary to the press release. A replay of this call will also be available on that same website later today.

Speaker Change: Thank you operator, good morning, and thank you for joining the paper Sandler companies second quarter 2024 earnings conference call hosting the call today are chairman and CEO, Chad Abraham our President Doug Schoen of men and CFO Kate Clinton.

Kate Winslow: Earlier this morning, we issued a press release announcing Piper Sandler's second quarter 2024 financial results, which is available on our website at PiperSandler.com slash earnings. Today's discussion of the results is complimentary to the press release.

Speaker Change: Earlier. This morning, we issued a press release announcing paper Sandler second quarter 2024 financial results, which is available on our website at Piper Sandler Dotcom Slash earnings.

Speaker Change: Today's discussion of the results is complementary to the press release.

Kate Winslow: A replay of this call will also be available at that same website later today.

Speaker Change: A replay of this call will also be available at that same website later today.

Kate Winslow: Before we begin, let me remind you that remarks made on today's call may contain forward-looking statements that are not historical or current facts, including statements about beliefs and expectations, and involve inherent risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated are identified in the company's reports on file with the SEC, which are available on our website at Piper Sandler.com and on the SEC website at SEC.gov. Today's discussion also includes statements regarding certain non-GAAP financial measures that management believes are meaningful when evaluating the company's performance. The non-GAAP measures should be considered in addition to, not a substitute for, measures of financial performance prepared in accordance with GAAP.

Kate Winslow: Before we begin, let me remind you that remarks made on today's call may contain forward-looking statements that are not historical or current facts, including statements about beliefs and expectations and involve inherent risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated are identified in the company's reports on file with the SEC, which are available on our website at pipersandler.com and on the SEC website at sec.gov.

Speaker Change: Before we begin let me remind you that remarks made on today's call may contain forward looking statements that are not historical or current facts, including statements about beliefs and expectations and involve inherent risks and uncertainties.

Speaker Change: Factors that could cause actual results to differ materially from those anticipated are identified in the company's reports on file with the S. E C, which are available on our website at papers they on their dot com and on the SEC website at D. C Dot Gov.

Kate Winslow: Today's discussion also includes statements regarding certain non-GAAP financial measures that management believes are meaningful when evaluating the company's performance. The non-GAAP measures should be considered in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in our earnings release issued today. I will now turn the call over to Chad.

Today's discussion also include statements regarding certain non-GAAP financial measures that management believes are meaningful when evaluating the company's performance.

Speaker Change: The non-GAAP measures should be considered in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP.

Kate Winslow: A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in our earnings release issued today.

Speaker Change: A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in our earnings release issued today.

Chad Abraham: I will now turn the call over to Chad. Good morning, everyone. It's great to be with you to talk about our second quarter, 2024 results. We delivered strong year-over-year growth, generating adjusted net revenues of $357 million, a 17.3% operating margin, and adjusted EPS of $2.52. Our diversified platform continues to deliver solid profitability, and as market conditions continue improving, we are well positioned for a strong second half of the year. Corporate investment banking generated $235 million of revenues during the second quarter, an increase of 41% over the same period last year. For the first half of 2024, corporate investment banking revenues were up 33% from last year, with M&A and restructuring activity generating 65% of total corporate investment banking revenues, and equity financing contributing 22%.

Speaker Change: I will now turn the call over to Chad.

Chad Abraham: Good morning, everyone. It's great to be with you to talk about our second quarter 2024 results. We delivered strong year-over-year growth, generating adjusted net revenues of $357 million, a 17.3% operating margin, and Adjusted EPS of $2.52. Our diversified platform continues to deliver solid profitability, and as market conditions continue improving, we are well positioned for a strong second half of the year. Corporate Investment Banking generated $235 million in revenues during the second quarter, an increase of 41% over the same period last year. For the first half of 2024, corporate investment banking revenues were up 33% from last year, with M&A and restructuring activity generating 65% of total corporate investment banking revenues, equity financing contributing 22%, and Debt Advisory and Financing generating 13% of revenue. Results were driven by higher revenues from advisory transactions. The reopening of equity and debt capital markets and strong relative performance.

Chad: Good morning, everyone. It's great to be with you to talk about our second quarter 2024 results.

Chad Abraham: In addition, revenues generated from private equity clients were up significantly during the first half of 2024. During the year, we have deepened our sector coverage, expanded our product capabilities, and grown our geographic coverage while closely managing headcount and productivity. In early June, we announced the pending acquisition of Affinity Advisor, a full life cycle advisor to private equity GPs and LPs. Avidity was co-founded by Ryan Schlitt and John Robertshaw after previously holding senior positions in private capital advisory groups and asset management at Credit Suisse and DLJ.

Chad: We delivered strong year over year growth generating adjusted net revenues of $357 million.

Chad: 17, 3% operating margin.

Chad: And adjusted EPS of $2 52.

Chad: Our diversified platform continues to deliver solid profitability and as market conditions continue improving.

Chad: We are well positioned for a strong second half of the year.

Chad: Corporate investment banking generated $235 million of revenues during the second quarter.

Chad: An increase of 41% over the same period last year.

Chad: For the first half of 2020 for corporate investment banking revenues were up 33% from last year with M&A and restructuring activity generating 65% of total corporate investment banking revenues.

Chad: Equity financings contributing 22% and.

Chad Abraham: and debt advisory and financings generating 13% of revenues. Results were driven by higher revenues from advisory transactions, the reopening of equity and debt capital markets, and strong relative performance. In addition, revenues generated from private equity clients were up significantly during the first half of 2024. During the year, we have deepened our sector coverage, expanded our product capabilities, and grown our geographic coverage while closely managing headcount and productivity.

Chad: And debt advisory and financings generating 13% of revenues.

Chad: Results were driven by higher revenues from advisory transactions.

Chad: The reopening of equity and debt capital markets and.

Chad: And strong relative performance.

Chad: In addition revenues generated from private equity clients were up significantly during the first half of 2024.

Chad: During the year, we have deepened our sector coverage expanded our product capabilities and growing our geographic coverage, while closely managing head count and productivity.

Chad Abraham: In early June, we announced the pending acquisition of Evidity Advisors, a full-life cycle advisor to private equity GPs and LPs. Evidity was co-founded by Ryan Schlitt and John Robert Shaw after previously holding senior positions in private capital advisory groups and asset management at Credit Suisse and DLJ. Ryan and John and their team will bring a wealth of experience and relationships to Piper Sandler. The Evidity Team consists of approximately 45 professionals, including 11 managing directors, and will form Piper Sandler's Private Capital Advisory Group. The team provides fundraising services, secondary solutions to GPs and LPs, including continuation vehicles, and comprehensive capital market solutions for GPs across the life cycle of their portfolio companies.

In early June we announced the pending acquisition of <unk> advisors.

Speaker Change: Full lifecycle adviser to private equity Gp's Nlp's avidity was cofounded by Ryan sled and John Robert Shaw. After previously holding senior positions in private capital advisory groups and asset management.

Chad: Credit Suisse and Doj.

Chad Abraham: Ryan and John and their team will bring a wealth of experience and relationships to Piper Sandler. The AVIDITY team consists of approximately 45 professionals, including 11 Managing Directors, and will form Piper Sandler's Private Capital Advisory Group. The team provides fundraising services, secondary solutions to GPs and LPs, including continuation vehicles, and comprehensive capital market solutions for GPs across the lifecycle of their portfolio companies. The addition of these key capabilities will enhance the value of our platform to our single largest client base, private equity.

Speaker Change: Ryan and John and their team will bring a wealth of experience and relationships to Piper Sandler.

Speaker Change: Avidity team consists of approximately 45 professionals, including 11, managing directors and will form Piper Sandler private capital Advisory group.

Speaker Change: The team provides fund raising services.

Speaker Change: Secondary solutions to GPS in Lp's, including continuation vehicles, and comprehensive capital market solutions for G piece across the lifecycle of their portfolio companies.

Chad Abraham: The addition of these key capabilities will enhance the value of our platform to our single largest client base, private equity. By leveraging the combined network of financial sponsors with our broad sector coverage, significant opportunities exist to grow revenues over time. Specific to advisory services, revenues were 184 million during the second quarter of 2024, up significantly year-over-year, driven by higher fees and more completed transactions. We benefited from broad-based contributions across our industry teams, along with increased revenues from PE clients. We completed 67 advisory transactions during the quarter. Performance was led by the financial services team, which closed several significant transactions that were announced prior to this year.

Speaker Change: The addition of these key capabilities will enhance the value of our platform to our single largest client base private equity.

Chad Abraham: By leveraging the combined network of financial sponsors with our broad sector coverage, significant opportunities exist to grow revenues over time. Specific to advisory services, revenues were $184 million during the second quarter of 2024, up significantly year over year driven by higher fees and more completed transactions. We benefited from broad-based contributions across our industry teams, along with increased revenues from PE clients. We completed 67 advisory transactions during the quarter.

Speaker Change: By leveraging the combined network of financial sponsors with our broad sector coverage significant opportunities exist to grow revenues overtime.

Speaker Change: Specific to advisory services revenues were $184 million during the second quarter of 2024 up significantly year over year, driven by higher fees and more completed transactions.

Speaker Change: We benefited from broad based contributions across our industry teams along with increased revenues from PE clients.

Speaker Change: We completed 67 advisory transactions during the quarter.

Chad Abraham: Performance was led by the financial services team, which closed several significant transactions that were announced prior to this year. In addition, our services and industrials, chemicals, and debt advisory teams all had strong quarters. Our market leadership, broad industry coverage, and product capabilities are driving strong relative performance, with our first half 2024 advisory revenues up 26% over the first half of last year, compared to middle market activity that was flat. Looking forward, the advisory market is gradually improving as CEO confidence strengthens.

Speaker Change: Performance was led by the financial services team, which closed several significant transactions that were announced prior to this year.

Chad Abraham: In addition, our services and industrials, chemicals, and debt advisory teams all had strong quarters. Our market leadership, broad industry coverage, and product capabilities are driving strong relative performance, with our first half-2024 advisory revenues up 26% over the first half of last year, compared to middle-market activity that was flat. Looking forward, the advisory market is gradually improving as CEO confidence strengthens. We expect our third quarter advisory revenues to be largely consistent with the second quarter, with the potential for upside as we build into a strong Q4.

Speaker Change: In addition, our services and industrials chemicals and debt advisory teams all had strong quarters.

Speaker Change: Our market leadership broad industry coverage and product capabilities are driving strong relative performance with our first half 2020 for advisory revenues up 26% over the first half of last year compared to middle market activity that was flat.

Speaker Change: Looking forward the advisory market is gradually improving as CEO confidence strengthens.

Speaker Change: We expect our third quarter advisory revenues to be largely consistent with the second quarter with the potential for upside as we build into a strong Q4.

Chad Abraham: Turning to corporate financing, revenues were 51 million during the second quarter, down modestly from the first quarter. We completed 31 equity in debt financing, raising over 5 billion for corporate clients. Performance was led by our healthcare and financial services franchises. The healthcare team served as bookrunner on all nine equity deals priced during the quarter, and the financial services team completed a couple of large equity capital raises in the depository space. For the first half of 2024, the equity capital markets economic fee pool increased 54% over last year, while our economic fees increased 61%. The strength of our platform continues to drive market share growth.

Chad Abraham: We expect our third quarter advisory revenues to be largely consistent with the second quarter, with the potential for upside as we build into a strong Q4. Journey to Corporate Finance revenues were $51 million during the second quarter, down modestly from the first quarter.

Speaker Change: Turning to corporate financing.

Speaker Change: Revenues were 51 billion during the second quarter down modestly from the first quarter.

Chad Abraham: We completed 31 equity and debt financings, raising over $5 billion for corporate clients. This conference was led by our Health Care and Financial Services Branch. The healthcare team served as bookrunner on all nine equity deals priced during the quarter, and the financial services team completed a couple of large equity capital raises in the depository scheme. For the first half of 2024, the equity capital markets economic fee pool increased 54% over last year, while our economic fees increased 61%.

Speaker Change: We completed 31 equity and debt financings raising over $5 billion for corporate clients.

Speaker Change: Performance was led by our healthcare and financial services franchises.

Speaker Change: The healthcare team served as book runner on all nine equity deals price during the quarter and the financial services team completed a couple of large equity capital raises in the depository space.

Speaker Change: For the first half of 2020 for the equity capital markets economic fee pool increased 54% over last year.

Speaker Change: While our economic fees increased 61%.

Chad Abraham: The strength of our platform continues to drive market share growth. Looking ahead, corporate financing activity has slowed in July, and we expect revenues for the third quarter to be down from the first half 2024 run rate.

Speaker Change: The strength of our platform continues to drive market share growth.

Chad Abraham: Looking ahead, corporate financing activity has slowed in July, and we expect revenues for the third quarter to be down from the first half of 2024 run rate.

Speaker Change: Looking ahead corporate financing activity has slowed in July and we expect revenues for the third quarter to be down from the first half of 2024 run rate.

Chad Abraham: Turning to investment banking, managing director headcount. Our approach has not changed, and we continue to target the addition of five to seven MDs annually. We ended the second quarter with 170 managing directors, as we remain focused on selectively adding MDs while managing retirements and productivity. We continue to invest in our technology franchise, adding two Managing Directors focused on financial technology. In addition, we recently announced the hiring of three managing directors to our Services and Industrial team who will focus on residential and commercial services. They joined 18 professionals based out of our new Birmingham, Michigan location, the majority of whom started during the second quarter.

Chad Abraham: Turning to Investment Banking Managing Director headcount, our approach has not changed, and we continue to target the addition of 5 to 7 MDs annually. We ended the second quarter with 170 managing directors as we remained focused on selectively adding MDs while managing retirements and productivity. We continue to invest in our technology franchise, adding two managing directors focused on financial technology. In addition, we recently announced the hiring of three managing directors to our services and industrials team, who will focus on residential and commercial services.

Speaker Change: Turning to investment banking managing director head count.

Speaker Change: Our approach has not changed and we continue to target. The addition of five to seven Mds annually.

Speaker Change: We ended the second quarter with 170, managing directors as we remain focused on selectively, adding mds, while managing retirements and productivity.

Speaker Change: We continue to invest in our technology franchise, adding two managing directors focused on financial technology.

Speaker Change: In addition, we recently announced the hiring of three managing directors to our services and industrials team.

Speaker Change: We will focus on residential and commercial services.

Chad Abraham: They joined 18 professionals based out of our new Birmingham, Michigan, location, the majority of whom started during the second quarter. With that, I will turn the call over to Deb to discuss our public finance and brokerage.

Speaker Change: They joined 18 professionals based out of our new Birmingham, Michigan location, the majority of whom started during the second quarter.

Debbra Schoneman: With that, I will turn the call over to Deb to discuss our public finance and brokerage businesses. Thanks, Chad. I'll begin with an update on our public finance business, where market conditions improved during the second quarter. High credit spreads, solid investor demand, and increased governmental issuance led to better market conditions. We generated 25 million of municipal financing revenues during the second quarter of 2024, up 22% on a sequential basis. We underwrote 110 municipal negotiated transactions, raising over 3 billion of power value for our clients. Performance during the quarter was driven by governmental issuance in the Midwest and California, as well as solid results from our special district group, which specializes in financing the public infrastructure needs of growing communities.

Speaker Change: With that I will turn the call over to Deb to discuss our public finance and brokerage businesses.

Deb Schoneman: Thanks, Chad. I'll begin with an update on our public finance business, where market conditions improved during the second quarter. Tight credit spreads, solid investor demand, and increased governmental issuance led to better market conditions. We generated $25 million in municipal financing revenues during the second quarter of 2024, up 22% on a sequential basis. We underwrote 110 municipal negotiated transactions, raising over $3 billion of par value for our clients.

Deb: Thanks, Chad I'll begin with an update on our public finance business, where market conditions improved during the second quarter.

Deb: Tight credit spreads solid investor demand and increased governmental issuance led to better market conditions.

Deb: We generated $25 million of municipal financing revenues during the second quarter of 2024 up 22% on a sequential basis.

Deb: We underwrote 110 municipal negotiated transactions raising over $3 billion of par value for our clients.

Deb Schoneman: Performance during the quarter was driven by governmental issuance in the Midwest and California, as well as solid results from our Special District Group, which specializes in financing the public infrastructure needs of growing communities. As we look ahead, we believe additional improvements during the second half are achievable as the market continues to improve. Turning to our equity brokerage business, equity markets saw muted volatility during the second quarter as indices ground higher, albeit with limited breadth. We generated revenues of $52 million, up 3% from the second quarter of last year. We traded 2.8 billion shares during the quarter on behalf of over 1200 unique clients.

Deb: Performance during the quarter was driven by governmental issuance in the Midwest and California as well as solid results from our special District group, which specializes in financing the public infrastructure needs of growing communities.

Debbra Schoneman: As we look ahead, we believe additional improvements during the second half are achievable as the market continues to improve.

Deb: As we look ahead, we believe additional improvements during the second half are achievable as the market continues to improve.

Debbra Schoneman: Turning to our equity brokerage business, equity markets, some muted volatility during the second quarter is indices ground higher, albeit with limited breaths. We generated revenues of 52 million, up 3% from the second quarter of last year. We traded 2.8 billion shares during the quarter on behalf of over 1,200 unique clients. The breadth of our client base and our daily volume allow us to frequently cross client activity internally, a key differentiator for us in the marketplace. We continue to see client research votes improving as we demonstrate the value of our capabilities. Our expanded scale is winning minds and wallet share with our largest clients, helping to offset the impact from a declining market wallet.

Deb: Turning to our equity brokerage business equity markets are muted volatility during the second quarter as indices ground higher, albeit with limited Brett.

Deb: We generated revenues of $52 million up 3% from the second quarter of last year.

Deb: We traded $2 8 billion shares during the quarter on behalf of over 200 unique client.

Deb Schoneman: The breadth of our client base and our daily volume allows us to frequently cross-check client activity internally, a key differentiator for us in the marketplace. We continue to see client research votes improve as we demonstrate the value of our capabilities. Our expanded scale is winning minds and wallet share with our largest clients, helping to offset the impact from a declining market wallet. With muted volatility, we anticipate near-term results relatively consistent with the second quarter.

Deb: Breadth of our client base and our daily volume allow us to frequently cross client activity internally, a key differentiator for us in the marketplace.

Deb: We continue to see client research votes, improving as we demonstrate the value of our capabilities are.

Deb: Our expanded scale is winning mind and wallet share with our largest clients, helping to offset the impact from a declining market wallet.

Kate Clune: With muted volatility, we anticipate near-term results relatively consistent with the second quarter. Lastly, turning to fixed income, we generated revenues of 40 million for the second quarter of 2024, down slightly from the first quarter. Now, I will turn the call over to Kate to review our financial results and provide an update on capital use. Thanks, Deb.

Deb: With muted volatility, we anticipate near term results relatively consistent with the second quarter.

Deb Schoneman: Lastly, turning to fixed income, we generated revenues of $40 million for the second quarter of 2024, down slightly from the first quarter. However, client activity remains fairly muted as market participants wait for more certainty and interest rates. Headwinds and fixed income markets have not yet turned to tailwinds, but we're optimistic that the markets are improving. We expect near-term results similar to this quarter before a stronger finish to the year. Now, I will turn the call over to Kate to review our financial results and provide an update on capital use.

Deb: Lastly, turning to fixed income, we generated revenues of $40 million for the second quarter of 2024 down slightly from the first quarter.

Deb: Client activity remained fairly muted as market participants wait for more certainty on interest rates.

Deb: Headwinds in fixed income markets have not yet turned to tailwind. However, we're optimistic that the markets are improving.

Deb: We expect near term results similar to this quarter before a stronger finish to the year.

Deb: Now I will turn the call over to Keith to review, our financial results and provide an update on capital use.

Kate Clune: Thanks, Deb. As a reminder, my comments will address our adjusted non-GAP financial results, which should be considered in addition to and not as a substitute for the corresponding GAP financial measures. We generated net revenues of $357 million for the second quarter of 2024, an increase of 7% from the sequential quarter and 29% compared to the second quarter of last year, driven by higher corporate investment banking revenues. For the first half of 2024, net revenues totaled 691 million, up 22% year over year, again driven by increased corporate investment banking activity, as we continue to benefit from our broad and diverse platform, as well as more accommodative market conditions relative to 2023. Turning to operating expenses and margins,

Keith: Thanks Deb as a reminder, my comments will address our adjusted non-GAAP financial results, which should be considered in addition to and not a substitute for the corresponding GAAP financial measures.

Kate Clune: As a reminder, my comments will address our adjusted non-gas financial results, which should be considered in addition to and not a substitute for the corresponding gas financial measures. We generated net revenues of 357 million for the second quarter of 2024, an increase of 7% from the sequential quarter and 29% compared to the second quarter of last year, driven by higher corporate investment banking revenues. For the first pass of 2024, net revenues totaled 691 million, up 22% year over year, again driven by increased corporate investment banking activity as we continue to benefit from our broad and diverse platform as well as more accommodative market conditions relative to 2023. Turning to operating expenses in margin, our compensation ratio was 62.9% for the second quarter of 2024, lower compared to the sequential quarter and the second quarter of last year, driven by increased net revenue. For the first pass of 2024, our compensation ratio was 63%.

Keith: We generated net revenues of $357 million for the second quarter of 2024, an increase of 7% from the sequential quarter and 29% compared to the second quarter of last year, driven by higher corporate investment banking revenues.

Keith: For the first half of 2024 net revenues totaled $691 million up 22% year over year again, driven by increased corporate investment banking activity as we continue to benefit from our broad and diverse platform as well as more accommodative market conditions relative to 2023.

Kate Clune: Our compensation ratio was 62.9% for the second quarter of 2024, lower compared to the sequential quarter and the second quarter of last year, driven by increased net revenue. For the first half of 2024, our compensation ratio was 63%. Our compensation philosophy remains unchanged, exercising solid operating discipline while balancing employee retention, investment opportunities, and near-term margins.

Keith: Turning to operating expenses and margins are.

Keith: Our compensation ratio was 62, 9% for the second quarter of 2024.

Lower compared to the sequential quarter and the second quarter of last year driven by increased net revenue.

Keith: For the first half of 2024, our compensation ratio was 63%.

Kate Clune: Our compensation philosophy remains unchanged, exercising solid operating discipline while balancing employer retention, investment opportunities, and near-term margin. Based on our current outlook, we continue to expect our full-year compensation ratio to be near this level. Non-compensation expenses for the second quarter of 2024, excluding reimbursed deal expenses, were 65 million dollars, an increase of 6% on a sequential basis and down 3% compared to the year-ago quarter. Non-compensation expenses during the quarter were higher compared to our guided range due to elevated legal expenses that were unique to the quarter, as well as increased recruiting and placement fees. On a year-to-date basis, excluding reimbursed deal costs, non-compensation expenses totaled 126 million or an average of 63 million per quarter. We remain focused on managing the actionable expenses, as they are a key driver of operating leverage. During the second quarter of 2024, we generated operating income of 62 million and an operating margin of 17.3%.

Keith: Our compensation philosophy remains unchanged.

Keith: The sizing solid operating discipline, while balancing employee retention investment opportunities and near term margin.

Keith: Based on our current outlook, we continue to expect our full year compensation ratio to be near this level.

Kate Clune: Based on our current outlook, we continue to expect our full-year compensation ratio to be near this level. Non-compensation expenses for the second quarter of 2024, excluding reimbursed deal expenses, were $65 million, an increase of 6% on a sequential basis, and down 3% compared to the year-ago quarter. Non-compensation expenses during the quarter were higher compared to our guided range due to elevated legal expenses that were unique to the quarter, as well as increased recruiting and placement fees.

Keith: Non compensation expenses for the second quarter of 2024, excluding reimbursed deal expenses were $65 million, an increase of 6% on a sequential basis and down 3% compared to the year ago quarter.

Keith: Non compensation expenses during the quarter were higher compared to our guided range due to elevated legal expenses that were unique to the quarter as well as increased recruiting and placement fees.

Kate Clune: On a year-to-date basis, excluding reimbursed deal costs, non-compensation expenses totaled $126 million, or an average of $63 million per quarter. We remain focused on managing these actionable expenses as they are a key driver of operating leverage. During the second quarter of 2024, we generated operating income of 62 million and an operating margin of 17.3%. For the first half of 2024, operating income totaled 118 million, a meaningful increase over the prior year period, highlighting the operating leverage of our platform. Operating margin for the first half of the year was 17%.

Keith: On a year to date basis, excluding reimburse steel costs non compensation expenses totaled $126 million or an average of $63 million per quarter. We remain focused on managing the actionable expenses as they are a key driver of operating leverage.

Keith: During the second quarter of 2024, we generated operating income of $62 million and an operating margin of 17, 3% for.

Kate Clune: For the first pass of 2024, operating income totaled 118 million, a meaningful increase over the prior year period, highlighting the operating leverage of our platform. Operating margin for the first half of the year was 17%. Our income tax rate was 26.6% for the second quarter of 2024 and 19% for the first half of the year. Income tax... for the year-to-date period, with reduced by 12 million of tax benefits related to restricted stock award vests. Excluding these benefits, are tax rate for the first half of the year with 29.1%. We continue to expect our full-year tax rate to be within a range of 27 to 29%, excluding the impact from stock vests.

Keith: For the first half of 2024 operating income totaled $118 million a meaningful increase over the prior year period, highlighting the operating leverage of our platform.

Keith: Operating margin for the first half of the year was 17%.

Kate Clune: Our income tax rate was 26.6% for the second quarter of 2024 and 19% for the first half of the year. Income tax expense for the year-to-date period was reduced by $12 million of tax benefits related to restricted stock award vesting. Excluding these benefits, our tax rate for the first half of the year was 29.1%.

Keith: Our income tax rate was 26, 6% for the second quarter of 2024, and 19% for the first half of the year.

Keith: Income tax expense for the year to date period was reduced by $12 million of tax benefits related to restricted stock Award vesting <unk>.

Keith: Excluding these benefits our tax rate for the first half of the year was 29, 1%. We continue to expect our full year tax rate to be within a range of 2017% to 29% excluding the impact from stock vesting.

Kate Clune: We continue to expect our full-year tax rate to be within a range of 27-29%, excluding the impact of stock vesting. During the second quarter of 2024, we generated net income of $45 million, and diluted EPS of $2.52. For the first half of this year, net income totaled $95 million, and diluted EPS was $5.31.

Kate Clune: During the second quarter of 2024, we generated net income of $45 million and diluted EPS of $2.52. For the first half of this year, net income total of $95 million and diluted EPS with $5.31.

Keith: During the second quarter of 2024, we generated net income of 45 million and diluted EPS of $2 52.

Keith: For the first half of this year net income totaled 95 million and diluted EPS was $5 31.

Kate Clune: Let me finish with an update on capital allocation. Our earnings capacity, combined with our capital light approach, enables us to generate meaningful amounts of excess cash to deploy through share repurchases, dividends, and corporate development. Today, the Board approved an 8% increase to our quarterly cash dividend to $0.65 per share. The dividend will be paid on September 13th to shareholders of record as of the close of business on August 29th.

Kate Clune: Let me finish with an update on capital allocation. Our earnings capacity, combined with our capital-light approach, enables us to generate meaningful amounts of excess cash to deploy through share purchases, dividends, and corporate development. Today, the board approved an 8% increase to our quarterly cash dividend to $0.65 per share. The dividend will be paid on September 13th to shareholders of record as of the close of business on August 29th. During the second quarter of 2024, we returned an aggregate of $20 million to shareholders, primarily through dividends paid. For the first half of the year, we returned an aggregate of $108 million to shareholders through share purchases and dividends paid.

Keith: Let me finish with an update on capital allocation.

Our earnings capacity combined with our capital light approach enables us to generate meaningful amounts of excess cash to deploy through share repurchases dividends and corporate development.

Keith: Today, the board approved an 8% increase to our quarterly cash dividend to <unk> 65 per share.

Keith: The dividend will be paid on September 13 to shareholders of record as of the close of business on August 29.

Kate Clune: During the second quarter of 2024, we returned an aggregate of $20 million to shareholders, primarily through dividends paid. For the first half of the year, we returned an aggregate of $108 million to shareholders, through share repurchases and dividends paid. We repurchased approximately 316,000 shares of our common stock, or $58 million, related to employee tax withholdings on the vesting of restricted stock awards. These repurchases more than offset the share count dilution from this year's annual stock grant.

Keith: During the second quarter of 2024, we returned an aggregate of $20 million to shareholders, primarily through dividends paid for.

Keith: For the first half of the year, we returned an aggregate of $108 million to shareholders through share repurchases and dividends paid.

Kate Clune: We also paid an aggregate of $50 million, or $2.20 per share, to our shareholders through our quarterly and special cash dividends. Our results for the second quarter of the first half of 2024 continue to reflect strong performance relative to our peer set. We remain focused on providing near-term value to our shareholders. While continuing to grow our platform, we're strongly positioned to accelerate earnings growth as markets continue to normalize. With that, we can open up the call for questions. Thank you.

Kate Clune: We purchased approximately 316,000 shares of our common stock, or 58 million, related to employee tax withholdings on the vesting of restricted stock awards. These were purchases more than all set to share account delusions from this year's annual stock grant. We also paid an aggregate of $50 million, or $2.20 cents per share, to our shareholders through our quarterly and special cash dividends. Our results for the second quarter in the first half of 2024 continue to reflect strong performance relative to our peer set. We remain focused on providing near-term value to our shareholders while continuing to grow our platform.

Keith: We repurchased approximately 316000 shares of our common stock or $58 million related to employee tax withholding on the vesting of restricted stock awards.

Keith: These repurchases more than offset the share count dilution from this year's annual stock grants.

Keith: Also paid an aggregate of 50 million or $2 20 per share to our shareholders through our quarterly and special cash dividend.

Keith: Our results for the second quarter and the first half of 2024 continue to reflect strong performance relative to our peer set we remain focused on providing near term value to our shareholders, while continuing to grow our platform. We're strongly positioned to accelerate earnings growth as markets continue to normalize.

Kate Clune: We're strongly positioned to accelerate earnings growth as markets continue to normalize.

Operator: With that, we can open up the call for questions. Thank you. If you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using a speaker phone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star 1 to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions.

Speaker Change: That we can open up the call for questions.

Operator: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speaker phone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We will take our first question from James Yaro of Goldman Sachs.

Speaker Change: Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad. If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again press star one to ask a question, we'll pause for just a moment hello, everyone.

Speaker Change: And an opportunity to signal for questions.

James Yaro: We will take our first question from James Yarrow with Goldman Sachs. Good morning, and thanks for taking my questions. Chad, maybe we could just touch on how your bank clients are thinking about the environment for conducting M&A after a number of years with nearly no activity. Are you seeing early signs of more bank M&A discussions? And what do you think we need for more normalization at this point? Yes, thanks, James. I would actually say the last month or two does feel a bit more constructive. It really doesn't have much to do with the regulatory environment.

Speaker Change: We will take our first question from James <unk> with Goldman Sachs.

James Yaro: Good morning, and thanks for taking my questions. Chad, maybe we could just touch on how your bank clients are thinking about the environment for conducting M&A after a number of years of nearly no activity. Are you seeing early signs of more bank M&A discussions, and what do you think we need for more normalization at this point?

Speaker Change: Good morning, and thanks for taking my questions Chad, maybe if we could just touch on how your clients are thinking about the environment for conducting M&A. After a number of years with nearly no activity are you seeing early signs of more bank M&A discussions.

Chad: What do you think we need for more normalization at this point.

Chad Abraham: Yeah, thanks, James. I would actually say the last month or two does feel a bit more constructive. You know, it really doesn't have much to do with the regulatory environment. I think it's as simple as... You know, a lot of small-cap banks, the stocks are up, you know, 20-30%, and you, that that feels better. And, you know, obviously, we've been through a tough period of time.

Yeah, Thanks, James I would actually say the.

Chad: The last month or two does feel a bit more constructive.

Speaker Change: It really doesn't have much to do with the regulatory environment I think it's I think it's as simple as.

Chad Abraham: I think it's as simple as, you know, a lot of small cap banks, you know, the stocks are up, you know, 20, 30 percent and, you know, that, that feels better and, you know, obviously we've, you know, been through a tough period of time and, you know, CEOs got to look out and figure out how to drive value and earnings and, you know, consolidation is, is a big part of that. So, I think it's, it's certainly early to make that call, but we've definitely seen a, you know, pick up in those conversations and, you know, obviously those deals take time and it's not going to impact this year, but yeah, we feel a lot better about how that's going now.

Speaker Change: Lot of small cap banks stocks are up.

Speaker Change: 230%.

Speaker Change: Yeah.

Chad Abraham: And, you know, CEOs have got to look out and figure out how to drive value and earnings. And, you know, consolidation is a big part of that. So I think it's certainly early to make that call, but we've definitely seen a pick-up in those conversations, and obviously, those deals take time, and they won't impact this year, but yeah, we feel a lot better about how that's going now.

That feels better and obviously we have.

Speaker Change: <unk> been through.

Speaker Change: A tough period of time and CEO has got to look out and figure out how to drive value on earnings and.

Speaker Change: Consolidation is.

Speaker Change: It is a big part of that so I think it's it's.

Speaker Change: It's certainly early to make that call, but we've definitely seen a pickup in those conversations and obviously those deals take time and it's not going to impact.

Speaker Change: This year, but yes, we feel a lot better about how that's going now.

Deb Schoneman: Excellent. Maybe just keeping on the bank theme, one for you, Deb, I think we are coming, obviously, closer to the point of rate cuts after Powell's comments recently. Could you speak to what you are hearing from banks in terms of their appetite as we move ahead in terms of willingness or desire to immunize balance sheets ahead of lower rates? Yeah, James, I would

James Yaro: Excellent.

Excellent maybe just keeping on the bank theme one for you Deb I think we are coming obviously closer to the point of rate cuts. After Paul's comments recently could you speak to what you are hearing from banks in terms of their appetite.

Debbra Schoneman: Maybe just keeping on the, the bank theme, one for you, Deb. I think we are coming, obviously, closer to the point of rate cuts after Powell's comments recently. Could you speak to what you are hearing from banks in terms of their appetite? As we move ahead in terms of willingness or desire to immunize balance sheets ahead of lower rates? Yeah, James, I would say there's more discussion that feels better. I think there's been so many head fakes relative to rate cuts that banks are still a little bit just waiting for almost even a more clear signal before they step in and become more active.

Deb: As we move.

Deb: Move ahead in terms of willingness or desire to immunize balance sheets ahead of lower rates.

Deb Schoneman: Yeah, James, I would say there's more discussion; it feels better. I think there's been so many head fakes relative to rate cuts that banks are still a little bit just waiting for almost a more clear signal before they step in and become more active.

Deb: Yeah, James I would say.

Deb: There's there's more discussion it feels better I think theres been so many head fakes relative to rate cuts that banks are still a little bit just waiting for almost even a more clear signal before before they step in.

Speaker Change: And become more active so it's part of the reason for my comments. We said we feel like there is some tailwind I mean, that's part of that is just a little bit of a matter of timing.

Debbra Schoneman: So, you know, it's part of the reason for my comments. We said we feel like there's some tailwinds. I mean, that's part of that. It's just a little bit of a matter of timing.

Deb Schoneman: So you know, it's part of the reason for my comments; we said we felt like there were some tail winds. I mean, that's part of that. It's just a little bit of timing.

James Yaro: Thank you so much.

Speaker Change: Thank you so much.

Devin Ryan: We will take our next question from Devon Ryan with Citizens JMP. Hey, good morning, everyone. How are you? Good. Hi, Deb. Hi.

Devin Ryan: We will take our next question from Devin Ryan with Citizens JMP.

Speaker Change: We will take our next question from Devin Ryan with citizens JMP.

Chad Abraham: Hey, good morning, everyone. How are you? Good, I'd have it. Hi, first question, I guess, really a two part question on advisory near term and maybe longer term. Just on the near term, I would love to get a little bit more color around what you think is driving the maybe positive shift around the edges with sponsor clients and whether you're seeing it across all industries or if it's concentrated, and then kind of taking a step back and on the longer term, I would love And, you know, where you feel like you're lined up against potential fee pools, meaning, you know, where is there maybe still an opportunity where you're undersized relative to the fee opportunity?

Devin Ryan: Hey, good morning, everyone. How are you.

David: Hi, David.

Chad Abraham: Thanks.

Devin Ryan: The first question, I get to really a two part on advisory, near term and maybe longer term. Just on the near term, let me get a little bit more color around what you think is driving the, maybe the positive shift around the edges with sponsored clients and whether you're seeing it across all industries or if it's concentrated.

David: Alright.

Devin Ryan: First question I guess really a two part on advisory near term and maybe longer term.

Devin Ryan: On the near term wanted to get a little more.

Speaker Change: Color around what you think is driving that.

Speaker Change: The positive shift around the edges with sponsored clients and whether youre seeing it across all industries or if it's concentrated.

Debbra Schoneman: I mean, then kind of taking a step back and a longer term loves to get maybe an update on, you know, Piper's advisory coverage footprint today. And, you know, where you feel like you're lined up against the potential fee pools, meaning, you know, where is there maybe still opportunity where you're undersized relative to the fee opportunity. Thanks. Yeah, good. Yeah, I would say with sponsors, I mean, I feel a little like a broker record because we said this the last couple quarters. It's been, you know, slow steady improvement, and we've definitely seen an uptick, you know, this summer in terms of pitch activity and new proposed transactions. You know, obviously you never know how much of that's going to make.

Speaker Change: And then kind of taking a step back into the longer term what does this maybe.

Speaker Change: Maybe an update on pipers advisory coverage footprint today.

Speaker Change: Where do you feel like youre lined up against the potential fee pools, meaning, whereas there may be still opportunity, where youre undersized relative to the opportunity. Thanks.

Speaker Change: Yes.

Chad Abraham: Good. Yeah, I would say with sponsors. It feels a little like a broken record because we've said this the last couple quarters. It's been, you know, slow, steady improvement. And we've definitely seen an uptick this summer in terms of pitch activity and new proposed transactions. But obviously, you never know how much of that's going to make this year or next year. But I still think Devin, the main driving factor, you know, besides financing, getting a little bit better, is just how long in the tooth some of these funds have been without returning liquidity.

Speaker Change: Good Yeah, I would say with the sponsors I feel a little like a broken record because we've said this the last couple of quarters.

Speaker Change: It's been slow steady improvement.

Speaker Change: Definitely seen an uptick there.

In terms of.

Speaker Change: Pitch activity and new proposed transactions, obviously, you never know how much of that is going to make.

Debbra Schoneman: Yeah, this year or next year, but I still think that in the main driving factor, you know, besides financing getting a little bit better, is just how long in the tooth, some of these funds have been without returning liquidity. And I think, you know, the longer that time goes on, the more pressure they get from LPs, the more realistic valuations become, and we're certainly feeling that, and there's more funds that are, you know, specifically trying to get a. Particular Deal Done You know what I would say about the sponsor deals while all that feels good it's still you know not super easy at the end of the road when you're you're trying to close a deal where we you know we used to have multiple bitters at the end of the process you know the processes are still thin but I but I would say we we are now in a functioning private equity deal market the calendars definitely open up pitches are happen more and it's sort of like we said it's it's getting better relative to your second question about just opportunities you know I think the thing we like about our advisory business is just how diverse it is across industry teams you know while you know we just talked about depositories while that stays tough you know we're doing really well and energy we've had a nice return in our invested in technology and you know seen some you know nice announcements there and I would say frankly our first cut our first half health care has been kind of slow where you know 10 years ago if we were slow in health care that would have had a bigger impact but you know the diversity is pretty good and we actually think we're going to have a pretty strong back half in health care but I think within each one of these sectors especially when it comes to the sponsor community there's sort of tremendous focus on particular areas and I would just highlight you know as an example the team we just hired in Michigan you know they're they're going to be part of our you know diversified industrials and services team and they specifically spend all their time with sponsors in commercial and residential services so you know that's a pretty small sliver you know another area we invested in is you know auto aftermarket that's a small sliver so I would say within each of these industry groups this tremendous depth and focus is really important and there's you know there's quite a bit of runway and in many of the industry groups.

Speaker Change: Yes, this year or next year, but I still think Devin the main driving factor.

Devin Ryan: Besides financing or getting a little bit better is just how long in the tooth. Some of these funds have been without returning liquidity and I think the longer that time goes on the more pressure they get from Lps the more realistic.

Chad Abraham: And I think, you know, the longer that time goes on, the more pressure they get from LPs, the more realistic the Aidan Hall, Kate Clune, Piper Sandler Companies particular deal done. You know, what I would say about the sponsor deals. Well, all that feels good. It's still, you know, not super easy at the end of the road when you're trying to close a deal where we used to have multiple bidders at the end of the process, you know, the processes are still thin, but I would say we are now in a functioning private equity deal market. The calendars definitely open up, and pitches are happening more.

Devin Ryan: Valuations become and we're certainly feeling that and theres more funds that are specifically trying to get a.

Devin Ryan: Particular deal done.

Devin Ryan: What I would say about the sponsor deals.

Devin Ryan: While all of that feels good.

Devin Ryan: Still not Super easy at the end of the road when Youre trying to close the deal where we used to have multiple bidders at the end of the process. The processes are still thin, but I would say we are now in a functioning private equity deal market.

Devin Ryan: Calendars definitely open up pitches are happen tomorrow, and it's sort of like we said it's getting better.

Chad Abraham: And it's, it's sort of like we said, it's getting better. Relative to your second question about just opportunities. You know, I think the thing we like about our advisory business is just how diverse it is across industry teams. You know, while we just talked about depositories while that stays tough.

Relative to your second question about just opportunities.

Speaker Change: I think the thing we like about our advisory business is just how diverse it is across.

Speaker Change: Industry teams, while we just talked about depositaries, while that stays tough.

Speaker Change: We're doing really well in energy, we have had a nice return in our.

Chad Abraham: You know, we're doing really well in energy. We've had a nice return in our, in our, in our, Invested in technology and you know seen some, you know, nice Announcements there and I would say frankly our first our first half health care has been kind of slow where you know Ten years ago if we were slow in health care that would have had a bigger impact But you know the diversity is pretty good, and we actually think we're going to have a pretty strong Back half in health care, but I think within each one of these sectors, Especially when it comes to the sponsor community, there's sort of tremendous focus on particular areas.

Speaker Change: We've invested in technology and seen some nice.

Speaker Change: Announcements, there and I would say frankly, our first our first half healthcare has been kind of slow where 10 years ago. We were slow in healthcare that would have had a bigger impact but the diversity is pretty good and we actually think we're going to have a pretty strong back half in health care, but I think within each.

Speaker Change: One of these sectors.

Speaker Change: Especially when it comes to the sponsor community there is sort of tremendous.

Speaker Change: Focus on particular areas and I would just highlight as an example.

Chad Abraham: And I would just highlight, you know, as an example, the team we just hired in Michigan. They're going to be part of our, you know, diversified industrials and services team, and they specifically spend all their time with sponsors in commercial and residential services.

Speaker Change: The team, we just hired in Michigan.

Speaker Change: They're going to be part of our diversified industrials and services team.

Speaker Change: And they specifically spend all their time with sponsors in commercial and residential services. So that's a pretty small sliver.

Chad Abraham: So you know, that's a pretty small sliver. Another area we invested in is, you know, the auto aftermarket. That's a small sliver. So I would say within each of these industry groups, this tremendous depth and focus is really important. And there's, there's, you know, there's quite a bit of runway in many of the industry groups.

Speaker Change: Other area, we invested in is <unk>.

Speaker Change: So aftermarket that's a small sliver, so I would say within each of these industry groups. This tremendous depth and focus is really important and there's you know there's quite a bit of runway and many of the industry groups.

Debbra Schoneman: Okay, thanks Shia. This is very helpful. And then follow up your father's or dad just on fixed income brokerage. You appreciate participants are waiting for more certainty on it. Interest rates, the backdrop still relative to the challenge. But then I also heard the comment about optimism that the markets are improving. So I just love to, I feel like I've asked this question several times over the last couple of years, but just how we should think about what a more normal level of business is for Piper in fixing a brokerage, you know, that 50 million or so a quarter. And then how do you think about the inputs into the algorithm for intermediate term growth off of that? So once we get to something more normal, whenever that happens, you know, what does this business growth look like? Is it mid single digits, upper single digits, or how should we think about the actual growth of the underlying business based on the wallet and then what Piper is specifically doing? Thanks. Yeah, great question, Devon. I think while, you know, it's hard to predict the timing of when, I think your 50 million a quarter is really in the ballpark of what would be sort of a normalized fixed income business if there is such a thing anymore. But I would also say then off of that, from a growth perspective, we are looking, we've made some hires in municipal and continued to, even though that's been a strength for us, focus on some areas maybe softer yield just below IG and having increased capabilities there, as well as leveraging more technology. We're also looking at and have not yet completed everything we'd like to do relative to growing out structured credit, sort of the, you know, non-government back to the RMBS, ABS, CLO, those types of products. We also think we have significant opportunity in loan strategies where we have strengths there but see the opportunity both with our bank coverage and in particular even the non-bank coverage to do more there. So those are areas of focus that we're looking at as we move forward. Okay, terrific.

Deb Schoneman: Okay, thanks, Chad. That's very helpful. And then a follow up here, probably for Deb, just on fixed income brokerage. Appreciative participants are waiting for more certainty on interest rates. The backdrop is still relatively challenging, but then I also heard the comment about optimism that the markets are improving. So I just love to, I feel like I've asked this question several times over the last couple of years, but just how we should think about what a more normal level of business is for Piper in fixed income brokerage.

Deb: Okay. Thanks, Charlie is very helpful. And then a follow up you're probably for Deb just on fixed income brokerage.

Speaker Change: Appreciate participants are waiting for more certainty I think interest rates.

Speaker Change: Backdrop still relatively challenged but then I also heard the comment about.

Speaker Change: About optimism that the markets are improving so I just want to I feel like I've asked this question several times over the last couple of years, but just how we should think about what a more normal level of business is for Piper and fixed income brokerage.

Deb Schoneman: You know, is that 50 million or so a quarter? And then how do you think about the inputs into the algorithm for intermediate-term growth off of that? So once we get to something more normal, whenever that happens, you know, what does this business growth look like? Is it mid single digits, upper single digits, or how should we think about the actual growth of the underlying business based on the wallet and then what Piper is specifically doing? Thanks. Yeah, great.

Speaker Change: $50 million or so a quarter and then how do you think about the inputs into the algorithm for intermediate term growth off of that so once we get to something more normal whenever that happens what is this business growth look like is it mid single digits upper single digits or how should we think about the actual growth of the underlying business based on the wallet.

Speaker Change: What fiber specifically doing thanks.

Deb Schoneman: Great question, Devin. I think while it's hard to predict the timing of when, I think your $50 million a quarter is really in the ballpark of what would be sort of a normalized fixed income business if there is such a thing anymore. But I would also say, from a growth perspective, we've made some hires in municipals and continue to, even though that's been a strength for us, focus on some areas, maybe softer yield just below IG and having increased capabilities there as well as leveraging more technology.

Devin Ryan: Yes, great question Devin.

Speaker Change: I think well.

Speaker Change: It's hard to predict the timing of when I think your $50 million a quarter is really in the ballpark of what would be sort of a normalized fixed income business. If there is such a thing.

Speaker Change: But I would also say then off of that from a growth perspective.

Speaker Change: We are lucky we've made some hires in municipals and continue to even though that's been a strength for us focus on some areas may be softer yield just below IAG and adding increased AD capabilities, there as well as leveraging more technology. We're also looking at and have not yet.

Deb Schoneman: We're also looking at and have not yet completed everything we'd like to do relative to growing out structured credit, sort of the non-government back to the RMBS, ABS, CLO, those types of products. We also think we have significant opportunity in loan strategies where we have strength there but see the opportunity both with our bank coverage and, in particular, our non-bank coverage to do more there. So those are areas of focus that we're looking at as we move forward.

Speaker Change: Completed everything we'd like to do relative to growing out structured credit.

Speaker Change: The nongovernment back to our MBS ABS CLO those types of products.

We also think we have significant opportunity in loan strategies, where we have.

Speaker Change: <unk>, there, but see the opportunity both with our bank coverage and in particular, even the nonbank coverage to do more there. So those are areas of focus that we're looking at as we move forward.

Chad Abraham: Okay, terrific. And then I just had one last question, or I received a question just around kind of the back half guidance for the M&A advisory business. I believe it sounded like, you know, the third quarter should be similar to the second quarter with maybe a little bit of upside, and then the fourth quarter, you know, hopeful that that could improve further. But I just, again, based on what you guys are seeing today, I want to make sure we understand how you're framing kind of the back half of the year. Thanks.

Speaker Change: Okay terrific and then I just had one last question here I received a question just around kind of the back half guidance for.

Debbra Schoneman: And then I just had one last question here. I received a question just around kind of the back half guidance for the M&A advisory business. I believe it sounded like the third quarter should be similar to second quarter, maybe a little bit of upside, and then fourth quarter, you know, hopeful that that could improve further. But I just, again, based on what you guys are seeing today, I want to make sure we understand how you're framing kind of the back half of the year. Thanks. Yeah, you know, I would say, Devin, we're at that difficult point in the year where, like I said, the new pitch activity with sponsors and others has been, you know, really, really good this summer, but you never know when you're going to start those processes, and you never know exactly how many are going to close.

Speaker Change: The M&A advisory business.

Speaker Change: I believe it sounded like third quarter should be similar to second quarter, maybe a little bit of upside in the fourth quarter.

I am hopeful that that could improve further.

Again based on what you guys are seeing today I want to make sure we understand how you're framing kind of the back half of the year. Thanks.

Chad Abraham: Yeah, you know, I would say Devin, we're at you're at that difficult point in the year where, like I said, the new pitch activity with sponsors and others has been really, really good this summer, but you never know when you're going to start those processes, and you never know exactly how many are going to close, end of year, early next year. You know, obviously, we have visibility into how July's closing started.

Speaker Change: Yes, I would say Devin we're at that difficult point in the year were.

Speaker Change: Like I said, the new pitch activity with sponsors and others has been really really good.

Speaker Change: Summer, but you never know when you're going to start those processes and you never know exactly or how many are going to close.

Debbra Schoneman: End of your early next year, you know, obviously we have, you know, visibility into how July closing started. And so, you know, we made the comment that Q3 will look for advisory a lot like Q2. Obviously, that's still up nicely over last year. And yeah, and then the big question becomes just how good is Q4? I would say relative to last year and, you know, just relative performance. We had a very strong Q4. So, you know, we recognize it's a difficult comp, but, you know, like we said, business is absolutely improving with the pitch calendar, and if the pace, you know, stays like it is, you know, we feel good about that.

Devin Ryan: And if you're early next year, obviously, we have visibility into how July.

Chad Abraham: And so, you know, we made the comment that Q3 will look, you know, for advisory purposes, a lot like Q2. Obviously, that's still up nicely over last year. And yeah, and then the big question becomes just how good Q4 was. I would say, relative to last year and, you know, just relative performance, we had a very strong Q4. So, you know, we recognize it's a difficult comp. But, you know, like we said, business is absolutely improving with the pitch calendar. And if the pace, you know, stays like it is, we feel good about that.

Devin Ryan: Closing started.

Devin Ryan: And so we made the comment that <unk>.

Speaker Change: Q3 will look.

Speaker Change: For advisory a lot like Q2, obviously, that's still up nicely over last year and yeah and then the big question becomes just how good is Q4 I would say relative to last year and just relative performance, we had a very strong.

Speaker Change: Q4.

Speaker Change: We recognize it's a difficult comp, but like we said business is absolutely improving with the pitch calendar if the pace.

Stays like it is we feel good about that.

Devin Ryan: Okay. That's great. Thanks.

Chad Abraham: Okay. All right. That's great. Thanks, John. I appreciate the extra color.

Alright: Okay, Alright, that's great. Thanks, Joe I appreciate the extra color.

Devin Ryan: I appreciate the extra color.

Brendan O'brien: We will take our next question from Brendan O'Brien, with both research.

Brendan O'brien: We will take our next question from Brendan O'Brien with Wolf Research.

Alright: We will take our next question from Brendan O'brien with Wolfe Research.

Brendan O'brien: Good morning. Make sure you're taking my questions. I guess the star I just want to talk about the ability acquisition, you know, it's just a clear gap in your product offering. And while the business may not have a material impact on near-term earnings, it's clear that you could see significant synergies plugging the business into your sponsor coverage platform. So, I just want to get a sense as to how large of a business this could become for you over time.

Brendan O'brien: Good morning. Thanks for taking my questions. I guess to start, I just want to talk about the Avidity acquisition. You know, there's a clear gap in your product offering. And while the business may not have a material impact on near-term earnings, it's clear that you could see significant synergies plugging the business into your sponsor coverage platform. So I just wanted to get a sense as to how large of a business this could become for you over time.

Speaker Change: Good morning, Thanks for taking my questions.

Brendan O'brien: I guess to start I, just wanted to talk about the <unk> acquisition.

Brendan O'brien: Just a clear gap in your product offering and while the business may not have a material impact on near term earnings is clearly you could see significant synergies plugging that business into your spa.

Speaker Change: Sponsor coverage platform. So I just wanted to get a sense as to how large of a business. This could become for you over time and then separately at this point do you see any significant gaps in your product offering.

Brendan O'brien: And separately, at this point, do you see any significant gaps in your product offering that you would maybe look to do another acquisition for? Or do you expect acquisitions moving forward to look more like the DBO deal?

Chad Abraham: And then separately, at this point, do you see any significant gaps in your product offering that you would maybe look to do another acquisition for, or do you expect acquisitions moving forward to look more like the DVO deal? Yeah.

That you would maybe look to do another acquisition for or do you expect acquisitions moving forward to look more like the DBO deal.

Chad Abraham: Yeah, I'll take Avidity first. Yeah, we're very excited about this. I mean, it's something I and others at the firm have been looking at, you know, for a long time, met a bunch of firms. I think one of the things we like about Irvinity is just, quite a bit of overlap with the PE community in the middle market, where we spend a lot of time.

Speaker Change: Yeah.

Chad Abraham: I'll take a bit of first. Yeah. We're very excited about this. I mean, it's something I and others at the firm have been looking at, you know, for a long time, met a bunch of firms. I think one of the things we like about it, a bit of overlap with the PE community in the middle market where we spend a lot of time. I mean, there's lots of capital advisory in tangential areas, but these guys do capital raising really in our sweet spot. And, you know, it's already just been fun with lots of good private equity clients to kind of share the stories and talk about the opportunities.

Speaker Change: Uptake avidity first yes, we're very excited about this I mean, it's something.

Speaker Change: Hi, and others at the firm had been looking at for a long time met a bunch of firms I think one of the things we like about <unk> is just.

Speaker Change: Quite a bit of overlap with the PE community in the middle market, where we spend a lot of time I mean, there's lots of capital advisory in tangential areas, but these guys do.

Chad Abraham: I mean, there's lots of capital advisory in tangential areas, but, you know, these guys do capital raising really well in our sweet spot. And you know, it's already been, you know, fun with lots of good private equity clients to kind of share the stories and talk about the opportunities. And you can see it on both sides, like, can we move the needle on particular new primary capital raisings for them to have access to our full advisory team? Absolutely not.

Speaker Change: Capital raising really in our sweet spot and it's already just been fun with lots of good private equity clients to kind of share the stories and talk about the opportunities and you can see it on both sides like.

Chad Abraham: And, you know, you can see it on both sides. Like, can we move the needle on particular new primary capital raising for them, you know, to have access to our full advisory team, you know, absolutely. Can they move the needle for us? I mean, some of these funds, you know, they've been working with for many years. They've got relationships at the top of the house so they can, they can move the needle on, you know, helping us win particular advisory business. And I would say that, that is all before you even talk about, you know, secondaries and continuation vehicles, which we are, you know, really, really excited about and frankly have already, you know, started to line up some of those opportunities.

Speaker Change: Can we move the needle on on particular, new primary capital Raisings for them.

Speaker Change: To have access to our full advisory team absolutely can they move the needle for us I mean some of these funds.

Chad Abraham: Can they move the needle for us? Some of these funds they've been working with for many years. They've got relationships at the top of the house, so they can move the needle on helping us win particular advisory business. I would say that is all before you even talk about secondaries and continuation vehicles, which we are really, really excited about and, frankly, have already started to line up some of those opportunities. So, you know, it's only 45 people.

Speaker Change: They've been working with for many years, they've got relationships at the top of the house. So they can they can move the needle on helping US win particular advisory business and I would say that that is all before you even talk about.

Speaker Change: Secondaries and continuation vehicles, which we are really really excited about and frankly have already.

Speaker Change: Started the lineup some of those opportunities so.

Chad Abraham: So, you know, it's only 45 people. It, you know, likely doesn't close till, you know, end of Q3, early Q4.

Speaker Change: It's only 45 people.

Chad Abraham: It likely doesn't close till the end of Q3, or early Q4, so it's not going to make a big impact on numbers this year, but we're really excited about just how well this aligns with our core focus on PE. And then, yeah, I would say when it comes to other acquisitions, you know, the larger our advisory platform has gotten and, you know, it's broader across industries, it gets harder to find the really big stuff.

Speaker Change: Likely doesn't close till.

Speaker Change: End of Q3 early Q4, so it's not going to make a big impact on our numbers this year, but we're really excited about.

Chad Abraham: So, it's not going to make a big impact on numbers this year, but, you know, we're really excited about just how well, you know, this aligns with our core focus on PE. And then, yeah, I would say when it comes to other acquisitions, you know, the larger our advisory platform has gotten and, you know, it's broader across industries. It gets harder to find the really big stuff. We would love to do another Sandler-type deal. But for the most part, we are still seeing plenty of 50-person boutiques in areas where we've got not a lot of penetration.

Speaker Change: How well this aligns with our core.

Speaker Change: Our focus on P/e, and then yes, I would say when it comes to other acquisitions.

Speaker Change: The larger our advisory platform has gotten.

Speaker Change: It's broader across industries, it gets harder to find the really big stuff, we would love.

Chad Abraham: You know, we would love to do another Sandler-type deal. But, you know, for the most part, we're still seeing plenty of, you know, 50 person boutiques in areas where we've got, you know, not a lot of penetration. So I think tech and software, frankly, we're doing quite well with, you know, some of the DBO stuff, particularly in security and cyber. And, you know, I think there's a lot more we can do there. So there's plenty of stuff like that on the roadmap.

Speaker Change: Love to do another Sandler type deal.

Speaker Change: But for the most part we are still seeing plenty of 50 person boutiques in areas, where we've got.

Speaker Change: Not a lot of penetration so I think tech and software frankly, we're doing quite well.

Chad Abraham: So I think tech and software, frankly, we're doing quite well with some of the DBO stuff, particularly in security and cyber. And I think there's a lot more we can do there. So there's plenty of stuff like that on the roadmap.

Speaker Change: Some of the DBO stuff, particularly in security and cyber and I think Theres a lot more we can do there so.

Speaker Change: There's plenty of stuff like that on the roadmap.

Brendan O'brien: That's a great color.

Chad Abraham: Great color, and then I guess for my follow-up, I wanted to touch on the election and specifically how a more accommodative FTC could impact activity levels in your view, especially within the bank sector and also on the sponsor side, where I know there's been some challenges within the healthcare space.

Speaker Change: That's great color and then I guess for my follow up I wanted to touch on the election.

Chad Abraham: And then I guess for my follow-up, I wanted to touch on the election and specifically how a more accommodative FTC could impact activity levels in your view, especially within the bank sector and also on the sponsor side where I know there's been some challenges within the healthcare space. Yeah, I think it's hard to argue that if we had an administration change, that we wouldn't see quite a bit of change with some of the regulation. So you can never predict that, but I'd be pretty optimistic that would be good for our depository business and good for several of our industry teams. We've definitely seen some stuff relative to regulation and deal review in some parts of our strong sectors like healthcare.

Speaker Change: And specifically, how a more accommodative FTC could impact activity levels in your view, especially within that.

Speaker Change: The bank sector and also on the sponsor side, where I know there's been some challenges within the health care space.

Chad Abraham: Yeah, I mean, I think it's hard to argue that if, you know, we had an administration change, we wouldn't see quite a bit of change with sort of some of the regulations. So... You can never predict that, but I'd be pretty optimistic that it would be good for our depository business and good for several of our industry teams. Yeah, we've definitely seen some stuff, you know, relative to regulation and deal review, in some parts of our strong sectors like healthcare, that's quite a bit different from the scrutiny we saw, you know, 10 years ago, say, so I do think that would be positive for our M&A business.

Speaker Change: Yes, I mean, I think I think it's hard to argue that if we had an administration change that we wouldnt see quite a bit of change with sort of some of the regulation regulations. So.

Speaker Change: You can never predict that but I'd be pretty optimistic that would be good for our depository business and good for several of our industry teams I mean, we've seen yes.

Speaker Change: Yes, we've definitely seen some stuff.

Speaker Change: Relative to regulation and deal review in some parts of our strong sectors like health care.

Chad Abraham: That's quite a bit different than the scrutiny we saw 10 years ago, say. So I do think that would be a positive for our M&A business.

Speaker Change: That's quite a bit different than the scrutiny. We saw 10 years ago say so.

Speaker Change: I do think that would be a positive for our M&A business.

Brendan O'brien: Thank you for taking my questions.

Speaker Change: Great. Thank you for taking my questions.

Mike Grandeau: We will take our next question from Mike Grandeau with Northland Securities. Hey, thanks, guys. One more question, Chad, on Evidity. The 11 MDs you're picking up. How do we think about average fee or revenue per MD kind of compared to the Piper Investment Banking average? Any color there, just how we should think about that? Yeah, I think it actually, Grandeau, it fits pretty well with our overall averages. I think with where we want to get in the long term. I think at the starting point in our troughs, the productivity is probably closer to 5, which is where we'd be starting out probably for next year.

Mike Grondahl: We will take our next question from Mike Grondahl with Northland Securities.

Speaker Change: We will take our next question from Mike Grondahl with Northland Securities.

Mike Grondahl: Hey, thanks, guys. Um, hey, one more question, Chad on Avidity. The 11 MDs you're picking up, how do we think about, you know, sort of average fees or revenue per MD? kind of compared to, like, the Piper Investment Banking Average. Any color there, just how we should think about that?

Mike Grondahl: Hey, Thanks, guys.

One more question Chad on <unk>.

Chad: The 11th Mds, you're picking up.

Speaker Change: How do we think about.

Speaker Change: Sort of average fee or revenue per M D.

Speaker Change: Kind of compared to like the paper investment banking average any color. There just how we should think about that.

Chad Abraham: Yeah, I think I think it actually Grundy, it fits, it fits pretty well with our, you know, overall averages, I think with where we want to get, you know, in the long term, you know, I think at the at the starting point, you know, in in our trough, you know, the Productivity is probably closer to five, which is where we'd be starting out probably for next year, but we see the same opportunity to grow productivity just based on the combination and synergies, but that's going to take some time.

Chad: Yes, I think I think it actually grande it fit it fits pretty well with our overall averages I think with where we want to get in the long term I think thats at the starting point.

Speaker Change: In our troughs.

Speaker Change: Productivity is probably closer to five which is which is where we'd be starting out probably for.

Mike Grandeau: But we see the same opportunity to grow productivity just based on the combination and synergies. But that's going to take some time. Got it.

Speaker Change: Next year, but we see the same opportunity.

Speaker Change: To grow productivity, just based on the combination and synergies, but that's going to take some time.

Chad Abraham: Got it. And then, you know, just jumping back to M&A quick. How would you say your visibility into 4Q has changed over the last three months? I mean, has it gotten a lot better, a little bit better? Just maybe a little color there would be helpful.

Speaker Change: Got it and then.

Mike Grandeau: And then just jumping back to M&A quick. How would you say your visibility into 4Q has changed over the last three months? I mean, has it gotten a lot better, a little bit better? Just maybe a little color there would. to be helpful.

Speaker Change: Just jumping back to M&A quick.

Speaker Change: How would you say your visibility into for Q has changed over the last three months I mean has it gotten a lot better a little bit better just maybe a little color there would be helpful.

Chad Abraham: Yeah, again, I mean, I, you know, obviously, when you ask, if people ask this question in, you know, February, March, April, it's, it's almost impossible to answer. It gets a little easier as you get to the summer. But, you know, you got to remember, there are certain things that are going to close in Q4 that we haven't even started yet. I mean, there's, there's pitches happening in trying to figure out what those teams are. We're going to launch right away. So, we can close in November; December, we're going to launch, you know, after Labor Day. We're going to wait for the election.

Chad Abraham: Yeah, again, I mean, I obviously, when you ask people this question in, you know, February, March, April, it's It's almost impossible to answer. It gets a little easier as you get to the summer.

Speaker Change: Yes again.

Obviously, when you ask if people ask this question in <unk>.

Speaker Change: February March April.

Speaker Change: It's almost impossible to answer it gets a little easier as you get to the summer, but you got to remember there are certain things that are going to close in Q4 that we haven't even started yet I mean, there's there's pitches happening and trying to figure out with those teams.

Chad Abraham: But you got to remember, there are certain things that are going to close in Q4 that we haven't even started yet. I mean, there are pitches happening, and we're trying to figure out with those teams. Are we going to launch right away so we can close in November and December? Or are we going to launch, you know, after Labor Day? Are we going to wait for the election? So our visibility is definitely better, but, you know, we're not going to come out and make some big claim about Q4. Got it, got it.

Speaker Change: Are we going to launch right away. So we can close in November December or are we going to launch.

Speaker Change: After labor day, and we're going to wait for the elections. So.

Chad Abraham: So, our visibility is definitely better.

Speaker Change: Our visibility is definitely better, but we're not going to come out and make some big claim on Q.

Mike Grandeau: But, you know, we're not going to come out and make some big claim on Q4. Got it, got it. That's helpful. Perspective.

Speaker Change: Q4.

Mike Grondahl: Got it, got it, that's a helpful perspective. Hey, thanks, and good luck the rest of the year.

Speaker Change: Got it got it that's helpful perspective, Thanks, and good luck the rest of the year.

Mike Grandeau: Hey, thanks. Good luck. The rest of the year.

Mike Grondahl: Thanks, Mike.

James Yaro: We will take our next question from James Yaro. How was Goldman Sachs? Thanks for taking my follow up, Chad. I think IPOs have improved somewhat less than I think we might have hoped year to date. Could you offer some detail on what you're hearing today that's holding back IPOs? I guess how that's changed year to date. And then maybe any sort of context on what your backlogs look like. Let's say versus, let's say, at the beginning of the year.

James Yaro: We will take our next question from James Yaro of Goldman Sachs.

James <unk>: We will take our next question from James <unk> with Goldman Sachs.

James Yaro: Thanks for taking my follow-up. Chad, I think IPOs have improved somewhat less than we might have hoped year to date. Could you offer some detail on what you're hearing today that's holding back IPOs? I guess how that's changed year to date, and then maybe any sort of context on what your backlogs look like, let's say, versus, let's say, at the beginning of the year.

James <unk>: Thanks for taking my follow up Chad I think ipos have improved somewhat less than I think we might have hoped year to date could you offer some detail on what you're hearing today that is holding back Ipos I guess, how that's changed year to date, and then maybe any sort of context on what your backlogs look like let's say versus let's say at the beginning of the year.

James <unk>: <unk>.

Chad Abraham: Yeah, I, I, but yes, the question on ECM. I mean, obviously, we made, you know, some commentary that Q3 will be a little softer than the first couple of quarters. You know, obviously, ECM changes really quickly. So, you know, I can't really predict what it's going to be like in September. But for us, you know, we're very weighted to healthcare and biotech. And certainly in, you know, the end of June in July, you know, that market has slowed. You know, we can, we're still doing plenty of financings when there's sort of big catalyst, but just, you know, opportunistic financings.

Chad Abraham: Yeah, I'm glad you asked the question on ECM. I mean, obviously, we made some commentary that Q3 would be a little softer than the first couple quarters. But obviously, ECM changes really quickly. So, you know, I can't really predict what it's going to be like in September. But for us, we're very weighted to healthcare and biotech.

Yes, I am glad you asked the question on ECM I mean, obviously, we made some commentary that Q.

Q3 will be a little softer than the first couple of quarters, obviously ECM changes really quickly. So I can't really predict what it's going to be like in September but for us, we're very weighted to health care and biotech and certainly in the end of June and July.

That market has slowed we still doing plenty of financings when there is sort of big catalysts, but just opportunistic.

Chad Abraham: And certainly, at the end of June and July, that market has slowed, you know; we can, we're still doing, you know, plenty of financing when there's sort of big catalysts, but just, you know, opportunistic financings, we were seeing a lot more of that in the first half and in biotech, and we're not quite, you know, seeing as much there, I would say relative. And I think if you just look at the overall ECM fee pool, I think July, across the market, is the first month that probably wasn't up over last year.

Chad Abraham: We were seeing, you know, in a lot more of that in the first half and in biotech. We're not quite, you know, seeing as much there. I would say relative. And I think if you just look at the overall ECM fee pool, I think July across the market is the first month that probably wasn't up over last year. And, you know, the first six months were. And so, you know, obviously for us, the first six months were better than July. But, you know, I, I don't. August is always a difficult month, you know, and then when there's any market volatility in August, people just wait.

James <unk>: <unk> financings, we were seeing a lot more of that in the first half and in biotech and we're not quite seeing as much there I would say relative and I think if you just look at the overall ECM fee pool I think July across the market is the first month that probably wasn't up over last.

Chad Abraham: And you know, the first six months were, and so the first six months were better than July. You know, I don't, August is always a difficult month, you know, and then when there's any market volatility in August, people just, people just wait. So we don't have tremendous visibility into that. But I do feel like, you know, just getting past an outcome in an election, people always sort of ask us how that's going to impact us. No matter what happens, just putting that behind us will make for a better Q4 for ECM. But I agree with you.

James <unk>: Year and.

James <unk>: And the first six months were and so obviously for us.

James <unk>: The first six months were better than that.

James <unk>: July but.

James <unk>: August is always a difficult month.

James <unk>: And then when there is any market volatility in August people just people just wait so we don't have tremendous visibility into that I do feel like.

Chad Abraham: So, we don't have tremendous visibility into that.

Chad Abraham: I do feel like, you know, just getting past, you know, an outcome and an election. People always sort of ask us how that's going to impact. No matter what happens, just putting that behind us will make for a better Q4 for ECM. But I agree with you; we are seeing some of the very largest IPOs. We have in backlog the very strongest sort of profile. Those all are teeing up and are ready to go. But, you know, they haven't decided if they're going to go right after Labor Day or right after the election. So, there's definitely a pickup coming there, but it's not going to be this summer.

James <unk>: Just getting past.

James <unk>: Ill comment on election people always sort of ask us how that's going to impact no matter what happens just putting that behind us will make for a better Q4 for ECM, but I agree with you. We are seeing some of the very largest ipos, we have in backlog the very strongest sort of profile.

Chad Abraham: We are seeing some of the very largest IPOs we have in backlog, the very strongest sort of profile. Those all are teeing up and are ready to go, but, you know, they haven't decided if they are going to go right after Labor Day or right after the election. So there's definitely a pickup coming, but it's not going to be this summer.

James <unk>: Those all are teeing up and are ready to go but they haven't decided or they're going to go right. After labor day or right. After the election. So there is definitely a pickup coming there, but it's not it's not going to be this summer.

Kate Clune: Okay, that's really helpful. Maybe just one last question for Kate. I think you demonstrated robust non-comp discipline once again, but maybe you could just speak to the longer-term inflationary dynamics for non-comp costs as we look ahead to the back half and 2025 and any changes to the guidance there.

Speaker Change: Okay. That's really helpful. Maybe just one last one for Kate I think <unk> demonstrated robust non comp discipline once again.

Kate Clune: Maybe just one last one for Kate. I think you demonstrated robust non-com discipline once again, but maybe you could just speak to the longer-term inflationary dynamics for non-com costs as we look ahead. You know, to the back half and to 2025 and any changes to the guidance there.

Kate Winslet: But maybe you could just speak to the longer term inflationary dynamics for non comp costs. As we look ahead to the back half and into 2025 and any changes to the guidance there.

Kate Clune: Thanks, James. So you're right; while there are inflationary pressures that we're facing, particularly in spaces like data com fees and market data services, and a little bit on the T&E front, you know, our guidance really remains unchanged for the near term here at 62 million of quarter. Of course, exos reimbursable bill expenses. You know, we are constantly evaluating opportunities to be more disciplined, more efficient there, but we are seeing that as I think the peer set is as well. So again, we'd reiterate the 62 million for the near term here, but we are seeing those categories that will be really focused on, and we'll be sure to update the group should that guidance change.

James Yaro: Thanks, James. So you're right, while there are inflationary pressures that we're facing, particularly in spaces like datacom fees and market data services, and a little bit on the T&E front, you know, our guidance really remains unchanged for the near term here at $62 million a quarter, of course, X those reimbursable deal expenses. You know, we are constantly evaluating opportunities to be more disciplined, and more efficient there. But we are seeing that, as I think the peer set is, as well.

Kate Winslet: Sure. Thanks, Tim.

Speaker Change: So you're right while there are inflationary pressures that we're facing particularly in spaces like datacom fees and market data services and a little bit on the <unk> front.

James Yaro: So again, we'd reiterate the $62 million for the near term here. But we are seeing those categories that we'll be really focused on, and we'll be sure to update the group should that guidance change.

Speaker Change: Our guidance really remains unchanged for the near term here at $62 million a quarter of course ex those reimbursable deal expenses.

Speaker Change: We are constantly evaluating opportunities to be more disciplined more efficient there.

Speaker Change: But we are seeing that as I think the peer set is as well.

Speaker Change: So again, we'd reiterate that $62 million for the near term here, but we are seeing those categories that will be really focused on and we'll be sure to update the group should that guidance change.

Operator: Thanks for the thoughtful answers to all of my questions.

James Yaro: Thanks for the thoughtful answers to all my questions.

Speaker Change: Thanks for the thoughtful answers all my questions.

Operator: Thank you. We do not have any further questions.

Speaker Change: Thank you.

Chad Abraham: We do not have any further questions. I would like to turn the call back over to Chad Abraham for closing remarks.

Speaker Change: We do not have any further questions I would like to turn the call back over to Chad Abraham for closing remarks.

Chad Abraham: I would like to turn the call back over to Chad Abraham for closing remarks. Thank you, operator, and everyone that joined. We very much look forward to updating you on our third quarter results.

Operator: Thank you, operator, and everyone that joined us. We very much look forward to updating you on our third quarter results. Have a great day.

Chad Abraham: Thank you operator.

Operator: This concludes today's call. Thank you for your participation. You may now disconnect.

Chad Abraham: The one that joined we very much look forward to updating you on our third quarter results.

Chad Abraham: Have a great day.

Speaker Change: Have a great day.

Operator: This concludes today's call. Thank you for participation.

Speaker Change: This concludes today's call. Thank you for participation you may now disconnect.

Operator: You may now disconnect. Thank you.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yeah.

Speaker Change: [music].